Customer holds a cup of Iced Americano in front of a Starbucks' coffee shop in Seoul in this 2018 file photo. Korea Times file

By Kim Jae-heun

Consumers are concerned that Starbucks will increase caffeinated beverage prices for the first time in eight years as the price of coffee beans reaches its highest level since 2012. If the production of raw material decreases due to the worsening climate crisis and blockages in logistics transportation continue, the price rise appears inevitable.

"We are carefully considering increasing the price of coffee at the moment" a Starbucks Korea official said. The American coffeehouse chain in Korea fixed its price for americano at 4,100 won in July 2014 and has not changed it since.

When Starbucks began selling the coffee beverage for 4,100 won, some people criticized the price as being too high. Not many were willing to spend over 3,000 won for a cup of coffee then. But the franchise operator maintained the price even when latecomers to the market sold Americano at higher prices.

"Starbucks' coffee has been more expensive here than in New York since seven years ago. There is no country in the world that sells Americano at a higher price than Korea," a local customer said.

The production volume of coffee beans in Brazil plunged by 22.6 percent in 2021 year-on-year, according to the Brazilian Coffee Industry Association (ABIC). Brazil is the largest producer of raw coffee beans in the world and this led Arabica coffee beans to be traded for $2.50 per pound on ICE Futures, a New York futures market, last month. It is the highest price in 10 years and doubled in just a year.

Other franchises have not revealed their plan to respond to the price hike of coffee beans as of yet. Coffee Bean Korea, which sells americano for 4,800 won here has increased prices recently.

It appears to be only a matter of time before coffee house chains here increase the price once Starbucks makes the first move. Severe competition between each franchise has locked the price of caffeinated beverages as more people turn to the growing market of capsule coffee products.

Nestle Korea's capsule coffee brand, including "Starbucks Coffee At Home," raised the price for its products by 10 percent from Jan. 1.