With coffee prices on the rise, is it time to find an alternative?
December 11, 2024 by DarcieCoffee prices climbed sharply this year, with arabica beans up 80% as of Tuesday to an all-time high. Even the less popular robusta beans – the kind used most often in instant coffee – have doubled in price. While much of this is due to weather-related damage to crops, another factor is at play: more coffee farmers are finally being paid a living wage, according to Will Corby, a director of the subscription company Pact Coffee.
Regardless of the drivers of these price hikes, they will have a downstream effect on consumers who will see higher prices and/or package shrinkage in the coming year. Coffee aficionados are likely to cut back in other areas rather than give up their preferred beverage. Some may decide to make more coffee drinks at home instead of heading to their favorite coffee shop. That’s what I did at the beginning of the year, investing in an entry-level espresso machine that has nearly paid for itself.
People who are less wedded to drinking coffee may choose to switch their beverage, choosing tea, a soft drink, or a growing number of coffee alternatives instead. These substitutes are made from mushrooms, chicory, seeds, dates, and other ingredients intended to either mimic coffee or provide a different flavor experience. One startup, Atomo Coffee, aims for the former, saying that they have replicated not only the flavor of coffee but its aroma and ability to produce crema on an espresso shot as well. They tout their product’s sustainability as another key selling point.
Even though alternatives are booming, coffee companies are not just giving up on the beans despite the challenges of climate change and increased demand. They are looking for ways to adapt arabica coffee to grow in a wider range of environments, and are finding ways to improve the flavor of the more easily grown robusta beans. Coffee may be more expensive, but it isn’t going to vanish any time soon – something this coffee lover is grateful for.
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