Coffee Prices Surge, but Greek Café Scene Keeps Expanding

09:40 3/2/2025 - Πηγή: Dikaiologitika

Coffee lovers in Greece may soon be paying more for their daily cup, as retail and café prices are set to rise between 10% and 25% in the coming weeks.

The increase follows a global surge in coffee prices, which is now making its way to local businesses. With the cost of unprocessed green

coffee climbing significantly over the past year, Greek retailers and cafés are finding it increasingly difficult to absorb the rising expenses.

Until now, many businesses had managed to shield consumers from price hikes by relying on stockpiled supplies purchased at lower rates. However, as these reserves run out, adjusting to the new, higher costs has become unavoidable.

The price surge is driven by multiple international factors, including climate-related disruptions in major coffee-producing countries, increased demand in emerging markets, and supply chain speculation.

Although Greece is not a coffee-producing country, it is not immune to these global pressures. Suppliers are forced to adjust their prices, impacting both retail stores and cafés across the country. Despite this, Greece’s café culture remains as vibrant as ever. Demand for coffee remains strong, new businesses continue to open, and Greek coffee brands are even expanding abroad.

With over 75,000 coffee-selling establishments across the country, Greece is one of Europe’s most café-dense nations. Even as prices rise, consumption is showing no signs of slowing down. According to recent industry data, more coffee shops opened in Greece last year than those that closed, underscoring the sector’s resilience.

Several economic principles help explain why coffee demand remains steady despite rising costs. One of them, Say’s Law, suggests that «supply creates its own demand»—meaning that the continued expansion of cafés encourages more coffee consumption through competition and product diversification. Additionally, coffee is seen as a daily necessity for many consumers, making it less sensitive to price increases compared to other discretionary purchases.

Another relevant factor is the Inferior Goods Paradox, which suggests that during economic uncertainty, «affordable luxuries» like coffee remain in high demand. While consumers may cut back on major expenditures, they are still likely to indulge in small daily pleasures, such as a cup of coffee. This consumer behavior helps stabilize the Greek coffee market, making it one of the most resilient sectors in the country's economy.

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