SINGAPORE: Coffee prices have been climbing globally, and Singapore is following this trend, ranking 10th on Numbeo’s list of priciest places for a cappuccino, with an average cost of S$6.21 in 2024.
According to Yahoo News, the price rise is due to multiple factors, including bad weather in major coffee-growing countries, supply chain issues, and the increasing cost of dairy products.
Brazil, the world’s leading coffee producer, has been hit hard by extreme weather conditions, resulting in crop losses and driving up prices.
In Vietnam, which produces 17 per cent of the world’s coffee, coffee farmers are switching to growing durian, which is proving to be more profitable, tightening the global supply of coffee.
Meanwhile, in Colombia, the third-largest coffee producer, rising fertiliser and labour costs have reduced the availability of coffee beans, pushing prices higher.
While coffee prices in Singapore are high compared to many coffee-producing countries, they remain lower than in Denmark, the UAE, and Switzerland, where a cappuccino can cost over S$7.
According to a YouGov survey, the global rise in coffee prices has led more Singaporeans to brew their coffee at home, with 31 per cent cutting back on café visits to save money.
Despite the higher costs, demand for premium coffee in Singapore remains strong, with speciality coffee shops and international brands like Starbucks contributing to the rising prices.
Compared to Singapore’s prices, coffee is more affordable even in some of the world’s top coffee-producing countries.
In Brazil, a cappuccino costs around S$2.10 despite the country’s production struggles.
Ethiopia, the fourth-largest producer, offers cappuccinos for just S$1.53, though it faces supply risks from new deforestation regulations. In Ho Chi Minh City, Vietnam, a cappuccino now averages S$2.31, driven by supply issues as farmers move away from coffee cultivation.
With coffee demand rising across Asia, especially in cities like Manila, Jakarta, and Kuala Lumpur, where coffee culture is booming, coffee prices are likely to remain high. /TISG
Read also: Singapore tops global rent prices; renters in major cities struggling amid rising demand
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