Coffee prices are rising, this country that consumes 6 billion cups of Espresso/year is worried

Due to the sharp increase in coffee prices, many coffee lovers in this country may be at risk of having to give up or gradually reduce their coffee consumption. Consumer protection associations and associations representing mixologists are arguing because of this unimaginable price increase.

The people of this country are currently worried about this. The reason is because they are used to the habit of enjoying cheap cups of coffee, so when the price increases, they worry about the future of espresso when in the future these cups of coffee may increase in price. to 2/3. Luigi Morello, President of the National Espresso Institute – the unit that provides quality certification for espresso coffee here, said: “Everyone is quite worried and scared about the panic about espresso prices.”

And that is Italy – a country famous for its poetic canals.

Italians are currently considered to be able to enjoy the cheapest cups of Espresso in Europe, at about 1.2 euros/cup and for cappuccino it is 1.5 euros/cup. This is also one of the reasons for the habit of consuming large amounts of coffee. The consumer protection association in this country estimates that a total of 6 billion cups of coffee per year in public places are consumed by Italians and foreign tourists, bringing in about 7 billion euros in revenue.

Price problems due to climate change, adverse weather, crop diseases… have been directly affecting the coffee supply chain around the world. Italians may have to pay 2 euros for a cup of coffee with current price developments. This price is still very cheap compared to other cities with a high standard of living such as London or New York, but it will be a psychological shock for people in Italy.

President of the consumer protection association Gebriele Melluso said that any further price increases at local cafes would “threaten the daily habits of millions of citizens”. Coffee prices have increased about 15% since 2021 and have faced fierce opposition from consumer groups. However, it is highly likely that an increase in the selling price of coffee cups is inevitable, especially at traditional coffee shops – where sales of espresso and other types of coffee blends often account for 30% sales.

Luciano Sbraga – vice president of the Italian Federation of Public Facilities, which represents many of the 132,000 cafes in Italy, said coffee shops may face many difficulties in operating. “They can only operate if they are family restaurants, have no employees, and do not rent expensive locations. Then they can maintain their business.”

Rising prices accompanied by supply chain disruptions due to the Red Sea crisis may cause the coffee market to continue to witness many fluctuations in the future. Since November 2023, ships traveling between Asia and Europe have been forced to take the much longer route around the Cape of Good Hope instead of via the Suez Canal.

Espresso coffee is considered the national drink for Italians, the same as ‘bánh mì’ in Vietnam. Therefore, raising prices is not easy. In Liguria, one bar owner offered to sell espresso for just 70 cents if customers brought their own cups, spoons and sugar from home.

Many long-standing coffee shops in Italy are ready to increase prices when faced with the current situation of rising raw material prices. However, they believe that they cannot increase too much compared to the old price otherwise a large number of their customers will disappear.

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MINH PHAT International Coffee Company

Address: 154/4 Ly Chinh Thang, Vo Thi Sau Ward, District 3, Ho Chi Minh City