Coffee Prices May Hit AU$12: What's Driving The Soaring Costs?

Coffee prices are expected to rise sharply in the coming months, with experts predicting that a single cup of Joe may cost between AU$8 and AU$12 by the end of 2025.

Wes Lambert, Australian Restaurant and Cafe Association's chief executive, warned about the soaring costs of coffee beans, which he said was taking a toll on cafe owners, News.com.au reported.

"This is happening all around Australia. This is affecting every cafe," Lambert told Nine News. "Up to 30 per cent of businesses will feel heavy pressure by these increases, and we've heard about bean prices going up as much as 50 per cent. The supply chain to cafes and restaurants, including beans, is often affected by weather."

"If you want to enjoy your favourite cafe and your favourite cup of Joe, you may end up having to pay more.

The cost of beans and milk wasn't the only factor driving up coffee prices; other reasons included rise in prices of packaging, wages, rent, and extras. For a more affordable option, large coffees were available at 7/11, Coles Express, and Ampol for AU$3 to AU$3.50.

Local businesses said they were left with no choice but to raise the prices.

"We're not just greedy and trying to make more money," Little Gossip Cafe owner Fadi Sahan told Nine News. "We've got to increase a little bit just to make it viable to stay open."

Beer prices were also expected to follow suit.

A six-monthly excise tax hike is expected to cause alcohol prices to soar next month, leaving independent brewers worried about their existence.

"Many that are just on that edge of survival, will not be able to make it," Independent Brewers Association Chief Executive Kylie Lethbridge told Nine News. "If we continue to put off staff and we continue to close, then that tax revenue is lost anyway."