Skyrocketing Cost of Popular Goods Detected
Caffeine Craze on the Rise: Russia's Coffee Prices Soar by 13% in Q1 2024
From January to April 2024, the cost of coffee in Russia has skyrocketed, with roasted beans taking the lead as the priciest option. This alarming increase followed a record-breaking high for Arabica coffee on global commodity exchanges in February 2024, surpassing $9,500 per ton. However, a recent dip has seen prices decreasing by approximately 8.5% since early April.
According to PrimaMedia, the median price for coffee in Russia has climbed to 830 rubles, marking a 13% hike compared to 2023. The shift in prices is break-down as follows: 11% for instant coffee, up to 483 rubles; 7% for ground coffee, reaching 755 rubles; a staggering 19% rise for roasted coffee to 1892 rubles; and 10% for coffee in capsules, hitting 1072 rubles.
Interestingly, even with the surge in prices, the overall demand for coffee in retail has waned, with purchases down by 3%. Yet, sales in monetary terms have risen by 10%. This intriguing discrepancy may be due to the rising trend of consumers purchasing home coffee machines and opting for online shopping, causing a significant 9% decline in offline stores.
The roasted coffee market has seen a surge in popularity, as buyers steer clear of capsule coffee, which was once the preferred choice in online sales. Meanwhile, sellers of ground coffee have turned to discounts and promotions to keep sales afloat.
As for global coffee price trends, they're as volatile as a baristas' whipped cream. Supply and demand dynamics, trade disruptions, and tariffs all play crucial roles in shaping the market. However, the reasons behind the soaring coffee prices in Russia from January to April 2024 remain unclear, with local market conditions and economic policies requiring further investigation.
- The escalating cost of Arabica coffee on global commodity exchanges reached an all-time high of $9,500 per ton in February 2024, contributing to the 13% increase in the median price for coffee in Russia, which now stands at 830 rubles.
- While the overall demand for coffee in retail has waned by 3%, sales in monetary terms have risen by 10%, suggesting a shift towards home coffee machines and online shopping amid the price hike, with a 9% drop in offline store sales.
- In Russia, roasted coffee has witnessed the most significant price jump, increasing by 19% to 1892 rubles, while ground coffee follows closely at 7% up to 755 rubles.
- Despite the 13% increase in coffee prices in Russia from January to April 2024, buyers appear to be gravitating towards roasted coffee and away from capsule coffee, while sellers of ground coffee have resorted to discounts to maintain their sales.
