Starbucks Raises Coffee Prices Again?! Starbucks Coffee Beverages and Coffee Beans Have All Increased in Price!

On February 22nd, Starbucks Japan announced that due to soaring prices of coffee beans and other raw materials (including logistics costs), it will raise the prices of coffee beans and coffee beverages starting from April 13th. Among these, the price of coffee beans will increase by approximately 90 to 300 yen, while coffee beverage prices will rise by about 10 to 55 yen. Meanwhile, plant-based milk options such as soy milk latte, almond milk latte, and oat milk latte will see price reductions of over 10 yen.

This price adjustment by Starbucks Japan marks the first increase in coffee beverage prices in 3 years (since February 2019) and the first adjustment to coffee bean prices in 16 years (since February 2006).

Since the outbreak of the COVID-19 pandemic, various costs have been rising, and under the influence of inflation, people seem to have long been prepared for the news of coffee price increases. However, when the news finally arrived, it still stings. Milk tea has become increasingly accessible, but coffee seems to offer no such freedom.

The futures price of coffee beans has shown significant increases over the past year. However, recently, the conflict between Russia and Ukraine may affect market coffee consumption, thereby impacting global supply and demand relationships, causing coffee futures prices to retreat somewhat. With rising demand for coffee from major coffee-consuming countries, coupled with maritime shipping disruptions, coffee demand continues to rise, exacerbating the shortage of coffee beans. Coffee prices are closely related to global supply relationships, affecting medium to long-term trends.

Coffee Workshop reported as early as February that Starbucks' CEO had stated at a meeting that their product prices would increase to buffer the erosion of profits caused by costs and inflation.

Subsequently, Starbucks Korea raised the price of iced Americano coffee. As soon as this news broke, major Korean coffee shops also followed suit by increasing their Americano prices, effectively eliminating Koreans' "Americano freedom."

Shortly after, Starbucks China quietly raised prices as well. Combined with negative publicity Starbucks faced in China during that period, the "high-end" image Starbucks had cultivated over many years was significantly diminished.

Now, with Starbucks Japan announcing price increases, it will likely have some negative impact on its market share. In contrast, Doutor Coffee, Japan's national coffee brand, offers more competitive pricing and enjoys higher approval ratings.

Starbucks entered the Japanese market in 1996, becoming its first international market outside North America at that time. It has been over 25 years since then. In an article about Japan's first sign language store published in June 2020, Starbucks mentioned that Japan was then the fourth-largest market globally, with over 1,550 physical stores, 42,000 Starbucks partners, and presence across 47 jurisdictions.

The coffee market is currently rising, with more coffee brands emerging. We're now seeing a scene reminiscent of "a hundred schools of thought contending," as more brands offering better value than Starbucks continue to appear. With Starbucks raising prices now, what direction will its future take?

Image source: Internet

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