'Home Cafe = Cost-Effective' Is Now a Thing of the Past... Capsule Coffee Prices Are Also Rising

As coffee prices continue to hit record highs day by day, capsule coffee brand Nespresso announced that it will raise the price of capsule coffee by up to 81 won per capsule starting from the 1st of next month.

The price of coffee gifts has surged by more than 30%, approaching an all-time high. Pixabay

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Nespresso recently explained on its official website, "Due to inflationary pressures directly and indirectly affecting coffee prices, the cost of coffee production has increased, leading to a slight price increase for Nespresso Original coffee, which has been maintained for several years."

From next month, the prices of three types of Espresso and seven types of Ispirazione Italiana will rise from 699 won to 720 won. Three types of Decaffeinato, one type of Extra, and nine types of World Exploration will increase from 699 won to 750 won. Two types of Barista Creations Ice will go from 749 won to 790 won. Four types of Barista Creations Flavour and five types of Master Origin will be raised from 779 won to 860 won, a 10.4% increase.

On the 6th (local time), Arabica coffee futures traded at $4.0895 per pound on the New York market, setting a new all-time high. Arabica coffee surpassed $4 for the first time ever on the 5th, rising more than 4% in the market since humans began trading coffee. However, according to Nasdaq reports, prices surged for 12 consecutive trading days, breaking the record again within a single day.

The rise in coffee prices is mainly attributed to reduced production caused by climate change. In particular, major coffee-producing countries such as Brazil and Vietnam have been hit by climate change. Brazil, which accounts for 60% of Arabica production, experienced its worst drought in 70 years last year. Large-scale wildfires damaged Arabica coffee farms, leading to price increases.

The industry is responding that price hikes are unavoidable. Paul Bassett raised prices of major products by 200 to 400 won on the 23rd of last month. Starbucks Korea and Hollys also increased product prices by 200 to 300 won starting from the 24th. Low-cost coffee brands are no exception. Compose Coffee raised the price of iced Americano by 300 won from 1,500 won on the 3rd of this month.

Even capsule coffee, which was a major advantage in terms of cost-effectiveness, has seen price increases, increasing the burden on consumers. It is uncertain how long coffee prices will remain at high levels, but various factors such as climate change, rising logistics costs, and increased labor costs are intertwined, making it difficult for prices to stabilize in the short term.

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