The Impact of Global Coffee Price Increases on Italian Consumers

The rises in coffee prices on international markets risk having direct repercussions on the pockets of Italians, leading to an increase in the cost of the classic cup at the bar. This is stated by Assoutenti, which today provides data on retail prices and consumption. Espresso coffee has already undergone continuous price list increases in recent years, to the point that today the average price officially recorded by the Mimit of a cup consumed at the bar stands at 1.18 euros in the main Italian cities - explains Assoutenti - Just 3 years ago, in 2021, the average cost of espresso was 1.03 euros: this means that Italians have already suffered an increase of 14.9% for what is an indispensable daily tradition for millions of citizens. At the top is Bolzano (at 1.38 euros) while Catanzaro is the least expensive (0.99 cents). Tari in Rome, here are the increases: in the June bills tariffs adjusted by 3%. Pescara and Bolzano, the cities where coffee is most expensive. Among the main cities, Bolzano is the one that holds the record for expensive coffee at the bar, with an average price of 1.38 euros per cup, followed by Trento (1.31 euros) while Catanzaro, with an average of 0.99 euros, turns out to be the cheapest city, thus also surpassing Naples (1.05 euros) - analyzes Assoutenti - However, if today's price lists are compared with those in force in 2021, it is discovered that the province that has suffered the greatest increases is Pescara, with the average price rising from 1 euro to 1.28 euros and an increase of +28%, followed by Bari with +24.4%. 'We fear that the rises in coffee prices may lead in the coming weeks to increases in prices both for consumption at the bar (coffee, cappuccino, etc.) and for powdered coffee sold in supermarkets. - states President Gabriele Melluso - Even a few cents increase would determine a blow on the pockets of consumers, considering that in Italy about 6 billion coffees are served in public places every year for a turnover of espresso equal to about 7 billion euros annually'. Dear groceries, prices skyrocket: extra virgin olive oil sky-high. Average coffee prices Italy, from 2021 to 2024 here are the city-by-city increases. What the roasters say. It is a 'perfect storm' that is currently sweeping the global coffee market due to several concurrent factors that in recent months have pushed up the prices of this raw material. A situation that is causing great concern among Italian roasting companies due to the consequent heavy increases in costs and that, if it were to persist, could lead to a revision of the price lists. This is what can be read in a note from Altoga (National Association of Roasters, Coffee Importers and Food Wholesalers) affiliated with Federgrossisti-Confcommercio. In particular - the note continues - in the last 6 months the stock market quotations of Robusta coffee have recorded an increase of over 90% (from 2,200 to 4,195 dollars/ton), those of the Arabica variety by 55% (from 155.25 to 239.85 cents/Pound). There are several causes behind these increases: in the first case, a strong contraction in the supply by Vietnam (the world's largest producer of this variety), in the second case, the adverse weather conditions in Brazil and the intensifying problems of Robusta availability that have pushed many roasters to change the blends using a higher percentage of Arabica. To this - concludes the Association of roasters - two further elements of criticality must be added: the unfavorable exchange rate due to the strengthening of the Dollar over the Euro, due to the diverging interest rate policies applied by the Fed and the ECB, which has affected the cost of coffee by up to +4% in recent months; the second element is of a logistical nature and is linked to the increase in fuel costs, the need to avoid passage in the Red Sea (due to the continuous incursions of the Houthi) with a consequent increase in times and costs of travel of ships coming from the East, the scarce availability of containers that persists worldwide and the higher insurance premiums required on the basis of the risks connected to non-delivery. Factors that, overall, affect the costs of importing coffee by up to 50% more compared to 6 months ago.