Even capsule prices rise... ”Coffee Placetion” becomes a reality in Korea

It has been revealed that Nespresso, the capsule coffee brand of Nestle Korea, will raise product prices by up to 11.6% from January 1st.
The Korean coffee industry has been raising product prices one after another due to soaring coffee bean prices and a high exchange rate.
According to industry sources, Nespresso plans to raise the prices of 38 Vertuo coffee products sold in Korea from 2025. Nespresso is the No. 1 brand in the capsule coffee industry.
The product with the largest price increase is decaffeinated fortado, which will increase by 11.6% from 869 won to 970 won.
Luticio Decaffeinated is expected to see a 9.7% price increase from 729 won to 800 won. Fortado, Inizio and Alondio are expected to see a 7% price increase from 869 won to 930 won.
Other products are also expected to increase in price by between 0.1% and 6.5%. Nespresso also raised prices on some items in September last year,
"Inflationary pressures that directly and indirectly affect recent coffee prices have led to a slight price increase for some coffees."
The coffee industry as a whole has seen a sharp rise in bean prices due to the effects of abnormal weather, leading to a series of price hikes.
Dongseo Foods, the world's top food retailer, raised the prices of its major products by an average of 8.9% from November 15 last year. Starbucks Korea also announced in August last year that it would cut its "Café Auction" due to rising coffee bean prices.
The company is raising prices on its Grande (473ml) and Venti (591ml) sizes of Coffee Mericano, as well as its bean products (whole bean and VIA).
According to AT Food Industry Statistics, on November 27, the futures price of Arabica beans traded on the New York International Commodity Exchange (ICE) was 7,113 per ton.
In December 2023, prices averaged in the $4,000 range per ton, but in 2024 they will exceed $5,000 and then rise sharply, remaining in the $7,000 range in December.
The climate crisis, including droughts in major coffee-producing regions such as Brazil and Vietnam, is contributing to a decline in production. Robusta is also expected to exceed $5,200 per ton in 2024, reaching $8,000.
The industry predicts that if the exchange rate remains high, further price hikes will be unavoidable. The price burden will increase due to the nature of beans that are imported.
This is because of the possibility that the damage will be particularly severe for self-employed businesses such as independently-run cafes that purchase relatively small amounts of alcohol.
An industry source said, "The price of beans has been rising steadily and is expected to continue to rise.
"The exchange rate is also expected to rise, which could lead to higher sales prices," he said.