Coffee Prices Surge to Record Highs Across Canada Amid ‘Beanflation’

UPDATE: Coffee prices in Canada have reached alarming new heights, placing a strain on caffeine enthusiasts nationwide. Reports confirm that the cost of coffee has surged by 27.9% in August 2023 compared to the same month last year, with popular chains like Tim Hortons raising their prices by an average of 1.5% per cup—about an additional three cents.

As consumers face these rising costs, many are reconsidering their coffee consumption habits. In Calgary, residents report shifting from specialty drinks to home brewing to save money. One local lamented, “I’m addicted to coffee… but I’m down to two days a week for lattes.” Another expressed shock at the near $5 price for a regular black coffee, stating, “I’ll definitely be brewing at home more often.”

The spike in coffee prices is attributed to unfavorable climate conditions in major coffee-producing nations, including Brazil and Vietnam, which have disrupted supply chains just as global demand continues to rise. Sven Anders, a professor at the University of Alberta, notes the direct impact on consumers at cafés and grocery stores, stating, “Now we are seeing some major reactions where people see higher prices.”

Veteran coffee roaster Shawn McDonald highlighted the dwindling reserves in Brazil, once dubbed the “OPEC of coffee.” He explained, “They had thousands of warehouses that kept extra product. But a lot of those warehouses are empty now.”

This surge in coffee prices marks the largest single-year increase in decades, although a similar spike occurred in 1995 with a 36% rise. Long-term data from Statistics Canada reveals that from 1979 to 2024, coffee prices have increased by an astonishing 81.3%.

Despite the financial strain, some consumers are striving to remain optimistic. One Calgarian stated, “Coffee, we need it. Let’s be grateful we got the money to get what we need and just try to remain happy during this time of inflation.”

With coffee lovers feeling the pressure, the question remains: how will these price hikes continue to shape coffee consumption across Canada? Stay tuned for further developments as the situation unfolds.