A new price hike is hitting your morning cup of coffee. The cost of arabica coffee beans has surged by 25% since January 2025. This means that your daily habit will soon become more expensive. Whether you’re grabbing coffee at a café or brewing it at home, you will feel the difference in your wallet. Experts are warning that prices will continue to rise. Consumers are already dealing with high grocery costs. Now, coffee is joining the list of products getting pricier.
A cup of Joe gets pricier
By mid-February, a pound of arabica beans was priced at $4. This is a significant jump from previous months. Since arabica beans are used in three out of every five cups of coffee in the U.S., expect to see prices rise across the board. Coffee chains like Starbucks are feeling the pressure, and so are grocery stores. Bank of America has warned that retail coffee prices will keep going up. The increase will make your cup of coffee more expensive every time you buy it.
Starbucks and grocery bills hit hard
This price hike is especially hard for major coffee chains like Starbucks. Starbucks uses arabica beans exclusively, meaning they will be directly affected by this price increase. They’re already dealing with food inflation, and now they must raise prices even more. Customers will feel this shift at the counter, as prices climb higher. The American household is already facing high food costs. Analysts say that many families were already feeling “price fatigue” before this increase. Now, coffee is adding to that burden.
Why is coffee getting more expensive?
There are several reasons behind the rising coffee prices. Farmers are struggling to find enough workers to harvest and care for the coffee crops. This shortage of labor has forced them to raise wages. Higher wages add to the production costs of coffee beans. Fertilizer prices have also increased. This puts even more strain on the cost of producing coffee. All these factors combine to push coffee prices higher for consumers.
Climate chaos worsens the crisis
On top of labor and fertilizer costs, climate change is making the situation worse. Unpredictable weather patterns are damaging coffee crops. Extreme temperature fluctuations and unpredictable rainfall are harming the soil. As a result, coffee trees are becoming weaker and less productive. The countries that produce the most coffee, like Brazil and Vietnam, are experiencing droughts. These droughts have further reduced coffee supplies, making it harder for farmers to meet demand.
Even farmers are struggling
While higher prices may seem good for farmers, many of them are struggling to keep up with the rising costs. For them, producing coffee is not just a business—it’s their livelihood. “For us, producing coffee is our life,” said Moises Herrera, a plantation owner in Honduras. But many farmers are losing hope. They can barely cover their expenses, and the rising costs are pushing them to the brink. Even when coffee prices rise, it often isn’t enough to offset the growing costs they face.
Experts predict that things will get worse due to climate change. “Extreme weather events are becoming more frequent,” said Jeffrey Sachs, a professor at Columbia University. As weather patterns become more unpredictable, coffee production will continue to be unstable. The volatility of the weather will further threaten coffee yields around the world. This means prices could keep climbing in the future.
Eggs, too? Breakfast prices keep climbing
Coffee is not the only breakfast staple getting more expensive. Egg prices are also on the rise. A deadly strain of avian flu has caused millions of egg-laying hens to be culled. This has created a shortage of eggs across the country. As a result, egg prices have soared, leaving shoppers paying more at the store.
With fewer eggs available, prices have jumped. Some shoppers report paying as much as $10 for a dozen eggs. To help manage the shortage, grocery stores like Costco, Walmart, Whole Foods, and Trader Joe’s have started limiting egg purchases. This limits how many eggs each shopper can buy, making it harder for consumers to stock up.
Inflation keeps hammering shoppers
Inflation is a major driver of these price hikes. Economic reports show that prices are rising at a faster pace. The Consumer Price Index for January showed that inflation is climbing again. Grocery prices are one of the biggest contributors to this inflation. Core inflation, which excludes volatile food and energy prices, jumped 3% year-over-year. This exceeded analysts’ predictions and signals that prices will continue to rise.
As both coffee and egg prices continue to rise, American shoppers will feel more pressure on their grocery bills. Demand for both products remains high, meaning the impact will be even greater. With inflation adding to the mix, the costs of everyday items are skyrocketing. It’s clear that the breakfast table is becoming more expensive every day.
