Why coffee is more expensive
SIOUX FALLS, S.D. (KELO) – Corey Gerlach, who leads as both the head roaster and co-owner of The Breaks in Sioux Falls, mentions that the increasing cost of coffee isn’t something recent.
This trend has been ongoing in the coffee sector for several years,” Gerlach stated. “The prices have continuously increased.
When discussing what could cause an increase in the price of coffee beans, he mentions that multiple elements come into play.
The farmers and producers aren’t the ones setting the prices; instead, market speculation determines them,” Gerlach stated. “Factors such as geopolitical tensions, climate change, and diseases affecting coffee plants can all influence the cost of coffee. It boils down to supply and demand. For instance, if a major producer nation experiences poor yields during that season, it will drive prices higher.
Before the White House’s tariffs in 2025, coffee was costly.
And Gerlach states that tariffs are not currently crucial in this calculation.
I wouldn’t claim that tariffs are currently having a direct impact on the increased price of coffee,” he stated. “However, over time, they likely will.
As per the Consumer Price Index from the U.S. Bureau of Labor Statistics
In January 2021, the typical price for a pound of ground coffee stood at $4.59. This increased to $6.36 by January 2023, and further rose to $7.02 in January 2025. According to the most recent figures from April 2025, the average price climbed to $7.54 per pound.
Each company must determine its own pricing strategy for customer charges. Regarding The Breaks, they have increased their prices significantly.
“Somewhat,” Gerlach replied. “We’ve mainly absorbed these expenses without completely passing them along to our customers and clients. However, over the last few months, we did increase our wholesale prices slightly, as well as our beverage and retail prices. We aimed for subtle increases so that they would be acceptable to everyone.”
Gerlach states that tariffs will have a more immediate effect on the price of a coffee roaster or an espresso machine.
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