Tumbling Coffee Bean Prices Will Really Only Save You Money At Home

Have you heard the news? Everyone’s talking about it! Or really, just people interested in the coffee market. Anyway: Coffee bean prices are falling, tumbling and otherwise plunging to new lows. Sounds great, right? Well, sort of. Unfortunately, it doesn’t mean you’ll be able to waltz into Starbucks and glory in cheaper prices on the menu.

Quartz explains that all around the world, prices for arabica coffee beans are pretty darn low. This dip in prices has been going on for some time and it seems they’ll keep trending downward, as Brazil is in the midst of bumper crop of beans and it sells much of the world’s coffee. As of yesterday, arabica coffee futures are trading at their lowest in about five years.

But while that’s nice and good for coffee chains looking to pick up a bunch of beans to fuel in-store sales, there are other factors that come into play that will likely stop any of those savings from leaking through to the customer.

What kind of things? The cup your cappucino comes in, for example — that costs money. So does hiring workers, renting or leasing physical space for a store, transporting materials, even the price of the milk that goes into a latte all gets factored in to what amount you pay at the register. Unless the cost of all those different factors also goes down, you probably won’t notice any difference at your local cafe.

Perhaps the only way you’ll notice a slight decrease in your coffee costs is to buy the beans yourself at brew’em at home. And then you can pat yourself on the back for getting in on those cheaper beans.

Coffee prices keep plunging, but don’t count on a cheaper cup of joe at your local cafe [Quartz.com]

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  1. dan2112 says:

    Sweet… My French press will be getting a work out! But I also imagine the price for the beans I buy from my local coffee shop for home use won’t be going down either. I expect the difference may only be in the beans one would buy at the supermarket.

  2. C0Y0TY says:

    That explains the glut of green coffee auctions I’ve been seeing on eBay. It’s a better deal if you have a roaster.

    • SingleMaltGeek says:

      I’ve never tried it, but I’ve read that it’s very easy to roast coffee beans in a cast iron skillet, or even simpler, an old hot air popcorn popper. But Trader Joe’s has plenty of cheap coffee that is roasted the way I like it….and it looks like it’s about to get even cheaper! \o/

  3. Thorzdad2 says:

    Weird. Seems like it was just earlier this year that I was hearing warning about how there was a coffee shortage coming and that prices were going to go through the roof.

  4. Naskarrkid says:

    I’ll be giving my French press a workout, too! But, I wonder if this will affect the prices of ground coffee for the home, as well as the K-cup coffees.

    • C0Y0TY says:

      You can get an Ekobrew or other refillable K-cup insert and save lots of money while drinking better coffee than you get from Keurig partners.

  5. Kakkorotto says:

    Mmm coffee. I purchased a french press earlier this year and also a burr grinder. I only make coffee on the weekends at home and use my grinder all the time. I’ll be happy if I save money on my beans now.