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The Impact Of Rising Coffee Prices on Consumer Habits

Coffee prices have surged by up to 20% over the past few months, compelling consumers to rethink their habits. This increase is reflected not only in supermarkets but also in cafes, where the beloved drink of the Greeks is experiencing a new trial.

In particular, Greek and instant coffee, which make up 70% of retail sales by volume, saw a price hike of 14% and 11%, respectively. Meanwhile, espresso coffees—ground and in capsules—saw an average increase of 6%.

The price of a 200-gram package of popular instant coffee now stands at €9.38, up from €8.48 in February, while a 340-gram package of Greek coffee has risen to €7.60 from €6.30.

Cafeteria Prices Keep Climbing

The cost of coffee outside the home has also edged up, with increases ranging from 5% to 20%. While the hospitality industry tries to absorb these increases, operational costs like wages, rent, and energy remain principal concerns. Recent tax changes, like the VAT increase from 13% to 24%, coupled with the Special Consumption Tax, further burden the sector.

The Influence of Market and Production Factors

The surge in coffee prices is largely due to market concerns over this year’s harvest in Brazil, the largest Arabica coffee producer globally, and a significant drop in Robusta exports from Vietnam. The price of Arabica coffee hit a historic high of $440.85 per pound in February, a 17.72% increase since the start of the year.

Consumers are adapting by drinking more coffee at home, with only 30% of consumption happening outside the home, down from 60% pre-COVID-19. Many chase promotions and opt for more affordable private-label brands.

Embracing New Buying Patterns

In January, consumers rushed to take advantage of steep discounts offered by multinational companies on instant, Greek, and espresso capsules before the expected price increases. This led to a turnover of €54.11 million in retail, up 4.6% from 2024, according to market research by Circana.

Interestingly, despite a 14.1% decrease in espresso sales, private-label products gained significant traction, increasing by 36.5% over the same period, with sales doubling since 2021. Espresso capsules are now chosen based on available offers, making it a competitive market with no brand holding more than 35% market share.

In summary, while coffee remains a staple, changing market dynamics and economic factors are shifting consumption patterns, offering an array of opportunities and challenges for retailers and producers alike.

MENA Venture Capital Stable As International Investor Activity Shifts

A Data-Led Analysis Of Investor Behavior In A War-Affected Region

Venture capital activity in the Middle East and North Africa remained relatively stable one month after the escalation of regional conflict. Early data, however, indicate changes in investor behavior rather than immediate shifts in funding totals. Initial signals are visible in investor participation, capital allocation, and deal pipeline activity.

Venture Markets And The Lag In Response

Funding announcements reflect decisions made months earlier, meaning that today’s figures do not capture the full impact of current events. Investors typically adjust strategies gradually, signaling future shifts long before they are immediately visible in total funding numbers.

International Capital As The Key Pressure Indicator

Participation of international investors remains a key indicator across the MENA venture market. Global capital has historically accounted for a significant share of funding in the region. Following global interest rate increases, international participation declined through 2023. This shift was reflected in lower cross-border deal activity, more cautious capital deployment, and longer fundraising timelines.

Implications For The Broader Startup Ecosystem

Changes in international investor activity affect multiple parts of the startup ecosystem. A recovery in participation was recorded in 2024 and continued into 2025, supporting funding activity and cross-border investment. If uncertainty persists, potential effects include slower investment decisions, reduced cross-border engagement, and extended fundraising cycles. International capital also plays a role in supporting larger funding rounds and access to global networks.

Next Steps For Stakeholders

International capital represents one of several factors shaping venture activity in the region. Its movement often precedes changes in late-stage funding, startup formation, and exit activity. Investors, policymakers, and ecosystem participants rely on data and scenario analysis to assess these trends and adjust strategies.

For A Deeper Insight

Further analysis on venture activity, capital flows, and geopolitical impact across the region is available in the full MAGNiTT report.

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