Price Hike in Korean Budget Coffee Chains Due to Soaring Bean Costs
Creatrip Team
a year ago
In response to the highest coffee bean prices in 48 years, Compose Coffee, a leading budget coffee chain in Korea, has increased the price of their iced Americano by 300 KRW (approximately 0.25 USD), marking the first price increase since its founding. Although Compose Coffee's iced Americano remains cheaper than that of competitors, this move is significant as it marks the debut of 'coffee-flation' among budget brands. The coffee bean price surge is attributed to climate change impacts, particularly affecting the price of Arabica beans. The increase has stirred attention across consumers who are accustomed to low prices, making the market response key in shaping further price trends. Competing chains like Mega Coffee and Paik's Coffee (Paiks Coffee) have yet to announce similar hikes, despite an already saturated market. This news highlights the delicate balance between maintaining affordability and adjusting to rising costs in the Korean coffee market.
