Coffee, with the highest price increase in October, but Albanians do not give up, record consumption

2025-12-01 07:17:12, Aktualitet CNA

Coffee, with the highest price increase in October, but Albanians do not give

Coffee and cocoa prices are rising rapidly and are slowly removing our country from the list of low-cost destinations, both for locals and tourists.

INSTAT data show that the prices of coffee, tea and spices increased by 7.1% in October 2025, compared to October 2024. This was the strongest increase among all groups of basic consumer goods considered for measuring inflation.

The reasons are related to several internal and external factors. The main factors are the high prices of coffee and tea in international markets, influenced by extreme climatic conditions and reduced production.

The coffee sector in Brazil, one of the largest global producers, has faced prolonged droughts, frosts and unusual rainfall, which have reduced planted areas and yields.

Similarly, India – another major tea producer – has suffered a drop in production of around 30% due to high temperatures and flooding.

On the other hand, consumption is growing significantly, especially in emerging markets such as China and India, for both tea and coffee. Declining production and rising demand have driven prices to record levels.

Given these developments, international markets have increased speculation. Coffee prices are now at historic levels, also due to expectations of a production shortfall, which further strengthens the upward trend.

Recent analyses also show that tariffs imposed by the US on Brazilian producers have directly impacted the rise in global prices.

Coffee is an imported product and its prices are fully reflected in the domestic market. However, strong competition from coffee bars and the lifestyle of Albanians, based on consumption outside the home, are curbing the rapid increase in prices in the domestic market.

Among internal factors, labor shortages, rising costs from higher wages, and consumption by tourists are pushing prices up.

Historical data shows that during 2017–2018, coffee prices recorded a continuous decrease of 2–3% per year, indicating a period of stability or decline in demand.

From 2019 to early 2021, prices remained at low levels, with small fluctuations in growth, before starting a strong and immediate increase during 2021.

During this period, the global impacts of the pandemic and subsequent supply crises caused prices to explode, with rates peaking in 2022 at around 8%. After this peak, the chart shows a sharp decline during 2023, below 2% and briefly close to 0%, indicating a stabilization of the market after strong growth. However, from mid-2024 prices began to increase steadily again, reaching 7.1% in October 2025.

Prices are rising, but Albanians are not giving up the habit

Although prices have been increasing, consumption has had the same trend, as the daily habit for many Albanians is difficult to quit or reduce.

Other customs data show that for the 10-month period, coffee consumption reached 6.7 thousand tons, an increase of 3.5% compared to the same period a year earlier. This is the highest level of consumption, at least since 2018, when Customs reports the data.

Tourists are also estimated to have had a significant impact on this trend./ Monitor.al