Coffee bottleneck finished: prices rise after long negotiations!

Coffee bottleneck finished: prices rise after long negotiations!

In the past few months, consumers in Germany have experienced an unexpected bottleneck for coffee products. Supermarkets reported half -empty shelves, especially for popular brands such as Senseo, Tassimo and Jacobs. Today [1] shows light on the horizon: From this week, the affected products should be on the shelves again after long -lasting negotiations between retail chains such as Rewe and Edeka and the coffee company Jde Peet’s led to an agreement.

The situation reflects a complex market dynamics. Edeka stated that there was an incomprehensible price increase that was described as "forced peace". A spokesman for JDE PEET’s confirmed that an agreement with all trading partners has now been reached. This is crucial because the prices for raw coffee last year rose sharply due to extreme weather conditions in the main growing countries of Brazil and Vietnam, which has doubled the costs. Jde Peet’s tries to pass on only part of these cost increases to consumers in order to keep the price increase moderately.

market development and price increases

The price development shows a dramatic increase. For example, coffee pads and capsules were almost 25 % more expensive than in 2020. The price of bean coffee also rose by almost 23 %. This tendency is in line with the global price developments that achieve a new record high for coffee prices. The main reasons for this are poor harvests in production countries, increasing demand in Asia and global delivery problems.

prices in different cities

The price development also has an impact on coffee culture in different cities. In Italy, prices for espresso have risen by 20 % since 2021. Here are some current average prices:

The situation remains tense and it is uncertain whether the coffee prices will stabilize in the near future. Consumers have to prepare for persistently high prices, while the market conditions are developing. In the long term, price development depends heavily on the upcoming harvest in Brazil, which is crucial for global coffee availability.

In this stuck market, in which financial speculation and climatic challenges go hand in hand, it remains to be seen how the actors in the industry will react to the increasing expectations of consumers. In view of the global challenges, the coffee industry is in front of a fork in the road that carries both opportunities and risks.