If your morning smoko isn’t complete without a fresh brew, you might need to start budgeting for it—because the price of coffee is set to skyrocket this year.
For many tradies, that first cup of coffee is more than just a drink; it’s a ritual. Whether you’re grabbing a flat white before hitting the job site or sneaking in a quick long black at smoko, coffee is part of the daily grind.
But with costs on the rise, that simple caffeine fix might soon come with a serious price tag.
Industry experts are warning that by the end of 2025, the cost of a single coffee could climb to anywhere between $8 and $12, making it a luxury rather than a daily necessity.
And it’s not just your morning pick-me-up taking a hit—the price of beer is on the rise too, with a pint expected to reach $15 thanks to upcoming tax hikes.
For tradies and workers already feeling the squeeze from the cost-of-living crisis, this news isn’t exactly what you want to hear.
So, what’s driving these price hikes, and is there anything that can be done? Let’s break it down.
What’s behind the hike?
The Australian Restaurant and Café Association’s chief executive, Wes Lambert, says soaring bean prices are hitting cafes hard.
“This is happening all around Australia. This is affecting every cafe,” Lambert told Nine News.
“Up to 30 per cent of businesses will feel heavy pressure by these increases, and we’ve heard about bean prices going up as much as 50 per cent.”
The price of Arabica beans, one of the most popular coffee varieties, has shot up more than 80 per cent in 2024 alone. Last month, the cost per pound hit US$3.44—a massive jump that’s already making waves across the industry.
RMIT logistics expert Professor Vinh Thai says extreme weather events in key coffee-growing regions like Brazil and Vietnam are a major factor.
“The continuing increase of container shipping rates and other supply chain issues, by which the lion’s share of coffee bean shipments are transported, also greatly contribute to the cost of coffee,” Thai explained back in August.
“Roasters may need to pass these costs onto cafes, who in turn, may do the same to customers.”
For Aussie workers already battling the cost-of-living crisis, this price surge could make that daily caffeine fix a luxury rather than a necessity.
Thai also warns that if people start ditching their daily coffee, it could put the 70,000 jobs in Australia’s coffee industry at risk.
To fight back, he says coffee importers might need to source beans from alternative markets or bulk-buy stock to bring prices down, but it’s looking like there’s no way around at least some price hike of your favourite cup of bean juice.
Even your knock-off beer won’t be safe
And if a pricey coffee wasn’t bad enough, beer is also on the hit list.
With the six-monthly alcohol excise hike set to kick in next month, pub prices are about to climb yet again. That means your standard pint could cost around $15 before long.
And that could be the beginning, with one Sydney man already going viral earlier this month for forking out a whopping $22 for a single pint at a pub along the northern beaches.
“$22 for a pint!!!!” the poster raged. “This is getting f***d.”
The Independent Brewers Association’s chief executive, Kylie Lethbridge, says the tax increase could be the final straw for many small brewers.
“Many that are just on that edge of survival, will not be able to make it,” she told 9News earlier his month.
“If we continue to put off staff and we continue to close, then that tax revenue is lost anyway.”
With beer and coffee prices both on the rise, tradies and workers across Australia might need to start thinking twice before heading to their local café or pub.
Smoko and knock-offs just won’t be the same!
