In the bustling landscape of America, where coffee is more than just a beverage but a daily ritual for millions, recent years have brought forth unexpected challenges. The comforting aroma of freshly brewed coffee might soon be accompanied by concerns over rising prices, as 2023 unfolds amidst a global storm of economic pressures.
In 2022, coffee prices took a sharp upward turn due to shortages in Brazil caused by adverse weather conditions. While this event was significant, it was merely the beginning of a more complex issue. Rising costs in labor, energy, and packaging are putting immense pressure on coffee producers and manufacturers across the nation.
According to the latest Engage3 insights, the average price of coffee in US supermarkets has experienced a notable uptick, surging by 2% since the dawn of the year. Delving deeper, we can see that Branded and Own Label Coffee have risen at a similar rate, with Own Label prices rising marginally higher at 2.2%.
Starbucks fanatics might have felt a jolt when they discovered that their favorite brew experienced the most significant price hike, soaring by 4.0%. Alternatively, Folgers enthusiasts can relish a sip of good news as their cherished coffee brand witnessed a decline in prices, dropping by 1.5%. These fluctuations have left both coffee connoisseurs and casual drinkers pondering the reasons behind these changes.
But hold onto your mugs, for there’s an intriguing twist in this aromatic tale. For all the coffee lovers out there anxiously eyeing their budgets, Lavazza, a name synonymous with quality coffee, has delivered a dose of positivity. News has brewed that Lavazza has predicted more stability in 2024 that should help stop increases and all them to offer “more discounts”, a revelation that’s bound to bring smiles to the faces of caffeine enthusiasts across the nation.
Engage3 will be on the ground(s) with all the latest developments. Click here to learn more about how Engage3 helps retailers and brands improve their pricing performance and compete more profitably through data science & analytics.