Coffee lovers hoping for quick relief from historically
may have to wait longer as the expected pullback from a reduction in
has yet to materialize, according to Italian roaster Illycaffe SpA.
The company, known for the high-end espresso sold in silver-and-red cans, plans to raise prices again in January after two increases this year, Chief Executive Officer Cristina Scocchia said in an interview.
The cost of Arabica coffee beans surged to a record last month when U.S. tariffs on top exporter Brazil coincided with lackluster harvests across the globe. Prices have eased slightly since
expanded tariff breaks for Brazilian coffee, but still remain at historically high levels.
“There is a limit to how much a company can absorb a level of green coffee price, which is so unhealthily high,” Scocchia said, referring to the surge in unroasted bean costs. “We’ll increase the price in all the countries and in all the channels.”
Illycaffe’s moves are likely to be matched by other roasters, because consumer prices are still catching up with the commodity costs. Any hikes in prices of coffee on grocery store shelves tend to lag by “many months” or at times even a year, according to Carlos Mera, head of agricultural commodity market research at Rabobank. He’s expecting to see more price gains in the coming months.
Illycaffe predicts prices for unroasted beans will stabilize between US$2.80 to US$3 a pound within the second half of 2026, which is still above the average of the past five years.
“We were hoping for a much more dramatic drop,” Scocchia said in a telephone interview. The coffee industry is facing a “very, very difficult” situation due to the persistently high prices of unroasted beans, which she attributed more to speculation than actual supply issues.
The company maintained its sourcing strategy from Brazil during the period when U.S. tariffs were in place, as it has unique blends that require the country’s coffee. It’s now planning to enter production partnerships in the U.S., which accounts for 20 per cent of its turnover.
Illycaffe has tried to limit the impact on consumers by absorbing a significant portion of the cost increase within its margins, helping boost its sales volumes. Despite the high prices, coffee demand has remained resilient, with the company expecting the market to continue to grow at a single-digit rate.