What’s causing the increase in coffee prices in South Africa?

Coffee has long been an integral part of South African daily life, whether at home, in the office, or at a local café. 

With approximately 21.7 million adults – roughly two-thirds of the adult population – starting their day with a cup of coffee, it's clear that coffee culture is thriving in the country. 

However, recent fluctuations in global economics and environmental factors have led to a notable increase in coffee prices, catching the attention of consumers nationwide.

Several elements contribute to rising coffee prices, including climate change, increasing production costs, supply chain disruptions, and fluctuating exchange rates. 

Globally, coffee prices are expected to surge by at least 20%, primarily due to challenges faced by the world’s leading coffee producers, Brazil and Vietnam. 

According to the International Coffee Organization, Brazil’s coffee production is forecasted to decline by 5% (approximately 3.5 million bags) due to prolonged dry weather conditions. 

Vietnam, a key producer of Robusta coffee, is experiencing similar weather-related challenges, leading to lower yields. These disruptions in major coffee-producing regions directly impact South Africa’s coffee imports and pricing.

“Fluctuations in global supply and demand of imported coffee beans significantly influence coffee prices. Additionally, currency exchange rates play a crucial role, as coffee is traded internationally,” explains Domaine Rautenbach, Senior Brand Manager at Jacobs Coffee.

When the local currency weakens against major trading currencies like the Euro, importing coffee becomes more expensive.

Supply chain disruptions, ranging from increased transportation costs to labour shortages, further compound the challenge. 

These global trends, combined with local economic factors, mean that coffee brands and retailers must navigate a complex landscape while ensuring consumers continue to enjoy their favourite brews.

“With rising prices, we anticipate shifts in consumer behaviour. People will explore alternative coffee options and compare brands more closely based on value and affordability. This presents an opportunity for coffee brands to innovate and meet evolving consumer needs,” says Mbulelo Mashilo, Brand Manager for Douwe Egberts.

Despite market challenges, coffee brands are committed to ensuring that South Africans continue to enjoy high-quality coffee at competitive prices. 

Through strategic sourcing, optimised supply chains, and innovative product offerings, brands are actively working to mitigate cost pressures. 

Offering a diverse range of products across different price points allows consumers to find quality coffee that suits their budget without compromising on taste. 

Additionally, introducing value packs and promotional deals makes premium coffee more accessible, while improving local production and distribution efficiencies helps manage costs and maintain high product standards.

Despite price fluctuations, the love for coffee remains consistent. Whether enjoyed alone, with colleagues, or among loved ones, coffee continues to bring people together. 

While cost pressures exist, this moment presents an opportunity for the industry to innovate, whether through sustainable sourcing, creative product offerings, or leveraging local production capabilities. 

Consumers still expect quality, premium coffee that delivers on taste and experience, and brands that find strategic ways to balance affordability and excellence will thrive.

The coffee industry is resilient, and while global factors influence pricing, brands that remain agile and consumer-focused will continue to shape and elevate South Africa’s coffee culture.

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IOL Lifestyle