Coffee saw the highest price increase in October, but Albanians aren’t giving it up, record consumption

Here is the The prices of coffee and cocoa are rising rapidly, gradually pushing our country out of the list of low-cost destinations, both for locals and tourists.

INSTAT data shows that the prices of coffee, tea, and spices increased by 7.1 percent in October 2025, compared to October 2024. This was the strongest increase among all groups of basic consumer goods used to measure inflation.

The reasons are linked to several internal and external factors. The main contributors are the high prices of coffee and tea on international markets, driven by extreme weather conditions and reduced production.

Brazil’s coffee sector, one of the world’s largest producers, has faced prolonged droughts, frost, and unusual rainfall, which have reduced planted areas and yields.

Similarly, India, another major tea producer, has seen production fall by around 30 percent due to high temperatures and flooding.

On the other hand, consumption is rising significantly, especially in developing markets such as China and India, for both tea and coffee. Declining production and increasing demand have driven prices to record levels.

Given these developments, international markets have increased speculation. Coffee prices are currently at historic highs, also due to expectations of supply shortages, which further reinforce the upward trend.

Recent analyses also show that tariffs imposed by the United States on Brazilian producers have directly contributed to higher global prices.

Coffee is an imported product, and its prices are fully reflected in the domestic market. However, strong competition among cafés and the Albanian lifestyle, which is largely based on consuming coffee outside the home, are slowing down a sharper rise in domestic prices.

Among internal factors, the shortage of labor, rising costs from higher wages, and increased consumption from tourists are pushing prices upward.

Historical data shows that during 2017–2018, coffee prices registered a steady decline of 2–3 percent per year, indicating a period of stability or a drop in demand.

From 2019 to early 2021, prices remained low, with minor fluctuations, before beginning a strong and sudden increase in 2021.

During this period, global impacts from the pandemic and later supply chain crises triggered a surge in prices, reaching their peak in 2022 at around 8 percent. After this peak, the chart shows a sharp decline during 2023, falling below 2 percent and for a short time close to 0 percent, indicating market stabilization after the strong rise. However, from mid-2024, prices began rising steadily again, reaching 7.1 percent in October 2025.

Prices rise, but Albanians don’t give up the habit

Although prices have been increasing, consumption has followed the same trend, as the daily ritual for many Albanians is difficult to give up or even reduce.

Other customs data shows that in the first 10 months of the year, coffee consumption reached 6.7 thousand tons, up 3.5 percent compared to the same period a year earlier. This is the highest consumption level at least since 2018, when Customs began reporting data.

Tourists are also considered to have had a significant impact on this trend.

“KORÇA BOOM”