Why purchasing coffee is adding R600 to household spending each year
Coffee lovers, your favourite beverage is under threat.
Coffee has been one of the most volatile grocery items in the last few years.
Coffee prices have been rising faster than those of most other foods and drinks.
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You might think that it's the price of fancy, luxury coffee that is constantly climbing, but no.
Instant coffee is experiencing steep price increases because of supply shortages in major producing countries and rising production costs.
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According to BusinessTech, instant coffee cost 22,3% more in August 2024 than it did a year earlier.
Since 2022, the category has increased by 35,7%, adding approximately R600 per year to the average household’s spending.
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Ground coffee and beans have also been affected, but their 13,6% increase looks relatively mild compared to the spike in instant coffee.
What is causing the global coffee shortage?
Brazil produces nearly 40% of the world's coffee and suffered a weak crop in 2023 due to heavy rainfall, which triggered disease and pest outbreaks.
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The world's top supplier of robusta beans (used in instant coffee), Vietnam, also endured two consecutive years of extreme heat and drought, leading to consistently low yields.
These poor harvests are the most significant contributors to the pressure the coffee industry is experiencing.
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BusinessTech also reports that these issues were exacerbated by broader global supply chain disruptions, resulting in a sharp rise in international coffee prices.
Consumers definitely took notice.
Andrew Fulton, Director at Eighty20, explained that his preferred brand jumped from R400 to R800 a bag, doubling in price and effectively placing it out of reach.
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Prices seem to have stabilised somewhat, but even though inflation has cooled, coffee remains expensive compared to many other goods.
Even with the CPI sitting at 3,6%, instant coffee is still rising at a rate of roughly 10% annually.
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Fulton acknowledged that this is an improvement from the above-20% increase recorded a year earlier, yet it remains far higher than the broader inflation rate.
Coffee inflation has become more challenging to monitor following Stats SA's update to the CPI basket.
Ground coffee, which had recorded price inflation of about 13,6%, was removed entirely and replaced with rosé wine and snuff.
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That leaves instant coffee as the only coffee product officially tracked, even though it doesn’t represent the full market.
The price pressures and steep increases have also led to a decline in demand, but it appears to be recovering.
Fulton stated that coffee consumption in South Africa increased by 8% over the past year. Global production has also reached new highs, which has helped reduce some of the strain.
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Still, coffee remains a costly part of the monthly household budget, and the stabilised prices are still far from being affordable for all.
BusinessTech reviewed the costs facing instant coffee drinkers and tracked the price of Jacobs Instant Coffee 200g at Woolworths from November 2022 to 2025.
- The price increased from R139.99 in 2022 to R189.99 in November 2025 (35,7% rise).
- The increase from 2024 to 2025 was only 2,7%.
- The big picture shows prices have not recovered from the significant spike seen in 2023 and 2024.
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Eighty20 estimates that about 22.7 million South African adults, roughly half of the country’s adult population, drink coffee daily.
- Instant coffee is the most popular choice, and these consumers typically drink 1,7 cups a day, using around 4g per cup.
- The average instant coffee drinker goes through one 200g jar per month.
With the R50 price increase of Jacobs Instant Coffee between 2022 and 2025, and the average drinker consuming 12 jars a year, instant coffee drinkers are spending an extra R600 annually compared to three years ago.
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