The price of a cup of coffee in Russia has more than doubled over the past seven years, according to a study by OFD Platform, a major financial data firm. The average price of a 150-200ml cup of coffee stood at 166 rubles ($1.70) in August-September, which is an 11% increase compared to last year and a significant 118% rise compared to the prices in 2016. The study found that prices started to rise significantly during the Covid-19 pandemic.
OFD Platform CEO Alexey Barov explained that the increase in prices was due to various factors. The cost of a cup of coffee includes expenses for coffee beans, milk, labor, utilities, and other associated costs, as well as markups by coffee shops. Barov attributed the ongoing price hikes in 2021 and 2022 to a global increase in coffee prices resulting from poor coffee bean harvests in major producing nations. Furthermore, the departure of several FMCG brands from Russia due to Western sanctions imposed on Moscow in response to its involvement in the Ukraine conflict has also played a role. These combined factors led to a substantial 61% surge in the average price of a cup of coffee in 2022.
The study also highlighted the impact of currency fluctuations on the cost of imported coffee beans. The exchange rate between the ruble and the dollar has experienced significant fluctuations. In 2020, the exchange rate averaged around 72 rubles for one dollar, but it has surged above 100 several times since last year. As of now, the average exchange rate for 2023 stands at approximately 82 rubles per dollar, with the current rate climbing above 96. These fluctuations have contributed to the increase in prices of imported coffee beans.
In contrast, the price hikes for packaged coffee in Russian stores showed less significant fluctuations. In August-September, the average price was 289 rubles ($2.90) per pack, representing a modest 1% year-on-year increase but marking a substantial 52% surge compared to 2016 figures. The most significant spike in prices for packaged coffee occurred in 2022 when costs jumped by 28%.
The findings of the study were based on the analysis of 90 billion coffee shop and grocery store receipts in the OFD’s BigData system. The data provides a comprehensive overview of the coffee market in Russia and the factors contributing to the price increase.
Overall, the cost of a cup of coffee in Russia has seen a significant rise in recent years, with prices more than doubling since 2016. The Covid-19 pandemic, global price increases for coffee beans, and currency fluctuations due to sanctions have all contributed to the price hikes. As coffee remains a popular beverage in Russia, consumers may continue to bear the impact of these rising prices in the years to come.