Coffee drinkers hoping for relief from high prices may face further increases, as Italian roaster Illycaffe plans another price hike in January. This follows two increases earlier this year, according to Chief Executive Officer Cristina Scocchia. Illycaffe is known for its high-end espresso sold in silver-and-red cans. The company operates globally, offering a range of coffee products and related equipment.
The cost of Arabica coffee beans surged last month due to US tariffs on Brazilian exports and poor global harvests. While prices have eased slightly since President Trump expanded tariff breaks for Brazilian coffee, they remain high. Scocchia stated that the surge in unroasted bean costs has reached unsustainable levels for the company.
Illycaffe’s decision is likely to be followed by other roasters, as consumer prices haven’t yet caught up with rising commodity costs. Carlos Mera from Rabobank notes that grocery store coffee prices typically lag commodity costs by months, potentially even a year. He anticipates further price gains in the coming months.
Illycaffe forecasts that unroasted bean prices will stabilise between $US2.80 to $US3 a pound in the second half of 2026. This is still above the average of the past five years, indicating that elevated coffee prices may persist for some time.
