If you thought paying $5 for your morning flat white was a bit steep, brace yourself—the humble Australian coffee could soon set you back as much as $12 a cup.
Many people consider the cost of living in Australia an ongoing consideration, and households frequently review their everyday expenses.
A significant alteration to the pricing of a popular daily item is now anticipated, which may prompt a re-evaluation of personal budgets.
Yes, you read that right. The daily ritual that fuels our mornings and powers our catch-ups is facing a price hike that’s enough to make even the most devoted caffeine lover splutter into their keep cup.
Why is coffee getting so expensive?
It’s not just your imagination—coffee prices are on a rocket-fuelled rise, and it’s not just because your local café is getting greedy.
The real culprit is a perfect storm of global supply chain chaos, climate disasters, and a surge in international demand.
According to Todd Hiscock, CEO of Essential Coffee, the cost of coffee beans has nearly tripled since 2020, with international prices hitting record highs in early 2025.
‘The Chinese have very much converted from tea to coffee,’ he told the ABC. ‘They’re buying up unprecedented levels of coffee supplies, often taking a whole Brazilian stock load in ways that’s never been seen before.’
With China’s growing thirst for coffee, competition for beans is fiercer than ever. To keep up, Australian cafés will need to pay more for their beans, and those costs are inevitably passed on to us, the loyal coffee drinkers.
Climate change: The bitter aftertaste
It’s not just demand that’s driving up prices. The world’s biggest coffee producers are facing serious challenges.
Brazil, which supplies about a third of the world’s coffee, has been battered by years of drought followed by a devastating cold snap. These extreme weather events have slashed harvests and left plantations struggling to recover.
Meanwhile, Vietnam—the world’s second-largest coffee producer—has been hit by an El Niño-induced drought, with experts warning that crops may not bounce back for another two years.
Add in a strengthening Brazilian real (making exports more expensive) and you’ve got a recipe for skyrocketing prices.
The squeeze on Australian cafés
It’s not just the beans that are costing more. Local cafés are feeling the pinch from all sides. Essential Coffee reports a 9 per cent rise in wages, a 29 per cent jump in rent, and a 6 per cent increase in insurance costs over the past two years.
On top of that, the wholesale price of coffee has soared by 119 per cent since late 2023.
With margins razor-thin, café owners are left with little choice but to pass on the costs. But as Hiscock points out, ‘People are very sensitive to their beloved coffee and when you move the price up, you find not just a lot of negative reaction, you find some very terse expletives.’
Australian coffee culture: Too precious to lose?
Australia’s love affair with coffee runs deep. Our café culture is the envy of the world, with more than 75 per cent of us enjoying a daily brew.
Post-war European immigrants brought their passion for coffee to our shores, and we’ve never looked back. From the laneways of Melbourne to the beaches of Bondi, coffee is more than a drink—it’s a way of life.
Our baristas are world-class, our beans are top-notch, and our cafés have won international awards (shout out to Sydney’s Toby’s Estate, crowned ‘Best Coffee Shop in the World’ in Madrid). But could soaring prices threaten this proud tradition?
Will Australians pay $12 for a coffee?
Online, the reaction to the prospect of $10–$12 coffees has been swift and, frankly, a little bit panicked.
‘Never paying more than $6 for a coffee. If I had to have a coffee while I’m out, it will be a gas station coffee or I will bring my own mini-thermos,’ one person declared.
Another simply said, ‘Well I guess I will just have to go without it!’
But is giving up coffee really an option for most of us? For many, the daily café visit is about more than caffeine—it’s a social ritual, a moment of calm, and a small luxury in a busy world.
What can you do to save on your daily brew?
If the thought of a $12 latte is too much to swallow, here are a few tips to keep your coffee habit affordable:
Invest in a good home coffee machine. The upfront cost can be steep, but you’ll save in the long run.
Support local roasters. Buying beans directly from local suppliers can sometimes be cheaper and supports Australian businesses.
Try alternative brews. Filter coffee or cold brew can be more cost-effective than espresso-based drinks.
Bring your own cup. Some cafés offer discounts for reusable cups—every little bit helps!
The bottom line
Coffee prices are on the rise, and there’s no quick fix in sight. Whether you’re willing to pay $8, $10, or even $12 for your daily fix is a personal choice—but one thing’s for sure, the days of the $3.50 flat white are well and truly behind us.
We want to hear from you! Would you pay $12 for a coffee? Have you already started cutting back, or is your daily brew non-negotiable? Share your thoughts, tips, and coffee-saving hacks in the comments below—let’s keep the conversation (and the coffee) flowing!
Also read: Is your daily coffee secretly helping you live longer?
