For many Americans, a daily cup of coffee is more than just a beverage—it’s a ritual. But soaring prices are forcing some to reconsider this long-held habit, leading to changes in consumption patterns and a search for more affordable alternatives. The rising cost of coffee beans, driven by climate challenges and global supply chain factors, is impacting consumers across the United States, from those who frequent coffee shops to those who brew at home.
The price of coffee in the U.S. Rose 18.3% in January compared to the previous year, according to the latest Consumer Price Index released Friday. Over the past five years, government data shows, coffee prices have increased by a substantial 47%. This significant jump is prompting individuals to make difficult choices about a daily comfort, and in some cases, to forgo their coffee habit altogether.
Chandra Donelson, a 35-year-old resident of Washington, D.C., exemplifies this shift. For years, coffee was an integral part of her daily routine, a habit she inherited from her mother. However, faced with escalating prices and a temporary disruption in income due to a government shutdown last fall, Donelson made the difficult decision to eliminate coffee from her budget. “I did it daily for years. I loved it. That was my routine,” she said. “And now it’s not.” She has since switched to a tea and honey blend, costing just pennies per cup compared to the $7-$8 she previously spent on coffee.
Climate and Supply Chain Pressures
The increase in coffee prices isn’t solely a domestic issue. Virtually all coffee consumed in the United States is imported. Global factors are significantly contributing to the price surge. While tariffs on some coffee imports were eliminated in 2025, climate-related issues in key growing regions are driving up costs. Drought in Vietnam, heavy rains in Indonesia, and hot, dry weather in Brazil are all reducing coffee yields, impacting global supply and pushing prices higher.
The median price of a regular hot coffee in the U.S. Reached $3.61 in December, with considerable regional variation, according to data from Toast, a payment platform used by over 150,000 restaurants. Cold brews averaged $5.55 during the same period. These figures highlight the growing financial burden on coffee drinkers.
Adapting to Higher Costs
Consumers are responding to the price increases in various ways. Liz Sweeney, a 50-year-old from Boise, Idaho, described herself as a former “coffee addict” who has significantly reduced her consumption. She’s switched from three daily cups at home and frequent coffee shop visits to just one cup a day brewed at home, supplementing with Diet Coke or occasional trips to McDonald’s. Dan DeBaun, 34, of Minnetonka, Minnesota, is likewise cutting back on coffee shop visits as he and his wife save for a home, opting to purchase ground coffee from Trader Joe’s and brew it at home. “What used to be a $2 coffee is now a $5 or $6 coffee,” DeBaun noted.
Sharon Cooksey, 55, of Greensboro, North Carolina, initially switched to making Starbucks coffee at home to mitigate the rising costs. She then discovered Lavazza coffee, which she found to be approximately 40% cheaper. “Could I buy a bag of coffee for $6?” she asked herself. “It was like I just discovered another world. The multiverse opened up to me in the coffee aisle at Publix.” While she misses the social aspect of visiting her local Starbucks, Cooksey has found she enjoys the taste of her home-brewed coffee even more.
Industry Response and Consumer Habits
The National Coffee Association reports that two-thirds of Americans drink coffee daily. Despite the price increases, the association’s surveys indicate that overall coffee consumption remains relatively stable. However, as consumers face rising costs across the board – from rent to groceries – more are adjusting their habits. Starbucks recently announced changes to its pricing structure for beverage add-ins like syrups and matcha, standardizing costs at 80 cents for any combination of syrup or sauce, and $1 for a scoop of matcha powder, as reported by AOL. The company is also testing a feature in its app to show real-time pricing updates.
The shift in consumer behavior reflects a broader trend of economic sensitivity. As household budgets are stretched, even seemingly small luxuries like a daily coffee run are being scrutinized. The long-term impact of these changes on the coffee industry and consumer habits remains to be seen.
Looking ahead, the price of coffee will likely continue to be influenced by global weather patterns and economic conditions. Consumers may continue to seek out more affordable alternatives or adjust their consumption habits accordingly. The coffee industry will likely continue to innovate and adapt to meet changing consumer demands and navigate the challenges of a volatile global market.
What are your thoughts on the rising cost of coffee? Share your experiences and strategies for managing your coffee budget in the comments below.
