Why coffee bean prices are pushing cafe menu prices up
Coffee bean prices have climbed sharply, and Taiwan Starbucks responded by raising prices on some drinks starting February 12, 2025. The chain announced the change late on February 11, citing higher raw material costs linked to abnormal weather and international conditions. Brewed espresso and Daily Picks drinks rose by NT$5, while tea beverages and the Frappuccino series rose by NT$10.
The backdrop is a futures market under pressure: coffee futures on the US ICE exchange recently broke through 430 cents per pound, a 47-year record and a 118.57% gain over the past year. Starbucks paired the increase with a Valentine's Day buy-one-get-one-free promotion. Competitors in Taiwan now face a decision on whether to follow with their own price adjustments.
Coffee bean prices have been soaring relentlessly, and chain coffee brands can no longer hold out. Starbucks Taiwan, without warning in the early hours of February 11, posted an announcement on its official website declaring that starting February 12, it would implement a slight price adjustment on some beverages, with increases ranging from NT$5 to NT$10. The company attributed the price hike to rising raw material costs caused by abnormal weather and international conditions. At the same time, Starbucks also rolled out a Valentine's Day buy-one-get-one-free promotion to cushion consumers' reactions. Notably, coffee futures recently broke through 430 cents per pound on the US ICE exchange, setting a new 47-year record, with a gain of 118.57% over the past year. Whether this round of price increases will prompt competitors to follow suit has become a focal point of industry attention. This article will break down the specific categories affected by this price adjustment, the magnitude of the increases, and the coffee bean market trends behind it all.
▲
Click to follow | Daily specialty coffee culture magazine Coffee Workshop
According to multiple media reports, Starbucks Taiwan posted an announcement on its official website without warning in the early hours of February 11, stating that it would implement a slight price adjustment on some products starting February 12, 2025.
The announcement mentioned that raw materials have been affected by both abnormal weather and fluctuations in the international situation, and in order to appropriately reflect the rise in certain raw material costs, Starbucks had no choice but to make a price adjustment decision.
The company stated that the categories receiving price increases include brewed espresso and the Daily Picks series, both raised by NT$5, while tea beverages and the Frappuccino series were raised by NT$10. For example, the Strawberry Acai Lemonade Refresher will be adjusted from NT$85 to NT$95, an increase of 11.8%.
Starbucks confirmed that this price adjustment basically covers all freshly made beverages, mainly focusing on brewed espresso and the Daily Picks series sold in stores. The brewed espresso category includes Americano, Latte, and Caramel Macchiato, while the Daily Picks series covers Coffee Misto and Nitro Cold Brew, all raised by NT$5.
In addition, tea products including tea lattes and plain teas, involving 22 items in total, were all raised by NT$10, with increases ranging from approximately 5.3% to 10.5%. The Frappuccino series plus Refreshers, totaling 11 categories, saw increases between 5.4% and 11.8%.
In addition to beverage price changes, Starbucks' in-store refill discount was also adjusted accordingly. Previously, customers could enjoy a 30% discount on refills on the same day at the same store with a receipt, but starting tomorrow this will change to a 50% discount on refills. For customers who frequently use the refill service, this actually means a better discount.
However, while announcing the price adjustment, Starbucks also planned a series of promotional activities to attract customers. From February 12 to 14, Starbucks will hold a three-day "Happy Valentine's Day Friend Sharing Day" event. During the promotion, customers at all Starbucks stores across Taiwan can enjoy a buy-one-get-one-free offer.
It is worth noting that Starbucks Taiwan had already adjusted prices on 29 beverages back in 2017, with average increases of NT$5 to NT$20.
Regarding the decision behind this round of price increases, the brand cited the root cause as steadily climbing coffee bean costs.
Since 2022, coffee bean prices have shown a continuous upward trend, and since late last year they have entered a phase of sharp escalation. Entering 2025, coffee futures have repeatedly hit historic highs.
Just this morning, Arabica coffee futures prices broke through the high of 430 cents per pound on the Intercontinental Exchange (ICE) in New York, continuing to set new records not seen in 47 years. Over the past year, coffee futures have surged by as much as 118.57%.
The dramatic rise in coffee bean prices is undoubtedly a severe test for some industry players.
But in fact, for large chain brands like Starbucks, companies have long locked in their raw material costs. Even if coffee futures soar further, the cost of a cup of coffee can be absorbed through operational cost-sharing. However, for smaller chain brands or independent cafes, the pressure they face is clearly much heavier than Starbucks'. Some industry insiders have pointed out that as a bellwether for chain coffee brands, once Starbucks raises prices, it is very likely to prompt competitors to follow suit.
Disclaimer: Some images in this article are sourced from the internet. For some content on the website such as images, we will respect the original copyright and indicate the source. However, due to the large volume, some images and text may not have been credited in time. We ask for your understanding. If the original author has any disputes, they can contact the website for resolution. Once verified, we will promptly correct it. Compiled and edited by "Coffee Workshop." Please indicate the source when reposting. If there is any infringement, please let us know for removal. Thank you~!
The above content is compiled by CoffeeHunters, a coffee news website.
