Coffee isn’t just a morning ritual — it’s a staple in Canadian daily life and wallets. As of 2024, Canadians spend roughly $504 a year on coffee outside the home, (1) making it clear that rising prices hit more than just the taste buds, they can also put a real dent in household budgets.
By now, you must have heard the adage of how could save money by skipping your morning latte. That advice has always been a bit simplistic — but lately, it’s also getting harder to ignore. Whether you brew it at home or grab one on the go, coffee prices in Canada have been climbing, squeezing household finances that are already strained by inflation.
Why your morning coffee is costing more
Canadians are paying more for coffee both at grocery stores and cafés, as prices for beans, rent, labour and packaging rise across the industry. According to Statistics Canada, the cost of coffee purchased at grocery stores was nearly 28% higher this August than the same time last year.
The biggest driver lies far from Canadian borders. Reduced yields in major coffee-producing regions such as Brazil and Colombia have tightened global supply, while speculative trading has added volatility to prices. When fewer beans make it to market, costs rise all along the supply chain — from exporters to roasters to consumers.
“Basic supply and demand are at work here,” said University of Guelph food economist Michael von Massow, explaining that extreme weather and crop disease have cut into production and left farmers with less to sell. “When supply goes down, prices go up,” he told Global News. (2)
Currency fluctuations and tariffs have also influenced import costs. Although Canada dropped its counter-tariffs on certain goods in September, the relief hasn’t been enough to offset the broader pressures on the global coffee market.
For smaller Canadian roasters who buy through brokers rather than directly from growers, the impact can be more severe. They face thinner margins and less ability to absorb rising input costs without pushing prices higher. “Smaller players get squeezed when consumers resist price increases,” said von Massow.
How climate change is affecting coffee production
Climate change is adding new layers of uncertainty to coffee farming. Droughts in Brazil and Colombia — which together produce a large share of the world’s beans — have reduced harvests, while rising temperatures and unpredictable rainfall patterns make crops more vulnerable to pests and disease.
Coffee leaf rust, a fungus that thrives in warmer, wetter conditions, has decimated crops in parts of Latin America over the past decade. The Inter-American Development Bank reports that coffee farmers across the region face growing exposure to climate-related risks such as frost, flooding and extended dry seasons — all of which can disrupt yields and drive prices higher. (3)
Von Massow said consumers should expect continued fluctuations as these weather patterns persist. Some years may bring better harvests and lower prices, but others could see spikes when conditions worsen. “There’s going to be more variability in prices going forward,” he said.
Operational costs add to the price of coffee
The jump in coffee prices isn’t just about beans. Costs for rent, packaging, transportation and utilities have also risen, forcing cafés and roasters to adjust.
Robert Carter, president of the Coffee Association of Canada, told Global News that many operators have been navigating double-digit increases in operating costs since the pandemic. “The commodity side keeps fluctuating, and we’re still seeing production challenges from countries like Colombia and Brazil,” he said.
Even the removal of tariffs has provided only modest relief, and smaller roasters that lack direct supplier relationships continue to feel the pinch. Many of these independent businesses compete on quality rather than price, which means they risk losing customers if they raise prices too steeply.
What larger chains and small roasters are doing
Major chains are responding by gradually passing on costs. Tim Hortons, for instance, recently increased the price of coffee by an average of three cents per cup — its first hike in three years. The company said the move remains below inflation and reflects an effort to maintain affordability.
Independent roasters, meanwhile, are adjusting in real time to a volatile market. Adam Pesce, president of Reunion Coffee Roasters in Oakville, Ontario, described the year to Global News as “exhausting and unpredictable,” with futures markets driving rapid swings in green coffee costs. Many roasters are now purchasing beans more cautiously, raising retail prices only when necessary to protect their margins.
How Canadians can manage higher coffee costs
For coffee drinkers, rising prices may prompt a rethink of daily routines. Brewing at home is often cheaper than buying from a café, particularly when purchasing beans in bulk. Some grocery stores and online retailers sell larger bags of specialty coffee that reduce the per-cup price.
Loyalty programs from major chains can also offer small savings over time, while local roasters sometimes provide subscription services that spread costs out and reward consistent customers.
The future of coffee prices in Canada
It may be a bitter fact to swallow but the rising cost of your morning cup is a reminder that global supply chains, climate change and economic pressures are all connected — and all show up in your daily spending.
For now, Canadians may just need to savour their coffee a little more slowly — because every sip is costing a little more than it used to.
Article sources
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Newswire (1); Global News (2); IADB (2);
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.