Coffee Prices Soar: Consumers Brew at Home, Seek Cheaper Drive-Thrus Amid Inflation

• Global coffee prices, especially for arabica beans, have surged due to poor weather in Brazil and past tariffs, with US median cup prices up 20% since early 2023.
• Consumers are "trading down" rather than cutting consumption, with 37% making more coffee at home and a 43% jump in home coffee machine sales in the UK.
• Cheaper options like private-label brands and drive-throughs (e.g., 7 Brew Drive-Thru Coffee) are gaining popularity, while per-store visits to established chains like Starbucks and Tim Hortons have seen declines.
• Gen Z is driving a cultural shift, sharing DIY coffee tricks on TikTok, with #HomemadeCoffee posts doubling, reflecting a budget-conscious approach.
• This trend is intensifying competition for major chains and indicates a generational shift in coffee consumption habits, though coffee shops remain social hubs.

Why It Matters: Soaring coffee prices push consumers to home brewing and cheaper alternatives, reshaping the industry.