Rising coffee prices force APAC consumers to rethink their rituals

Across the Asia-Pacific region, coffee is more than a morning ritual; it's a cultural staple. But as prices brew up a storm, are consumers in Thailand, Singapore, and Australia feeling the pinch? New data reveals a complex picture, with some adapting their habits while others remain loyal to their daily cup.

Let's delve into coffee consumption data from Thailand, Singapore and Australia to understand the nuances of these evolving patterns.

THAILAND: A nation of coffee lovers feeling the pinch

In Thailand, coffee consumption is widespread, with 75% of the population indulging in the beverage at least once a month, and nearly half (49%) drinking it daily.

Men are more likely than women to be daily coffee drinkers (55% vs. 43%), and older generations—Gen X (86%) and Baby Boomers (85%)—outpace younger cohorts like Gen Z (65%) and Millennials (76%) in regular coffee consumption.

Which major coffeeshops are most popular among regular coffee drinkers in Thailand?

When it comes to where Thais get their coffee, local brands dominate. Café Amazon, owned by the state oil and gas company PTT, is the most popular chain, frequented by 61% of regular coffee drinkers.



All Café, a subsidiary of 7-Eleven, follows with 44%, while Starbucks ranks third with 32%. Despite the popularity of these chains, nearly half of Thai consumers (46%) have noticed a rise in coffee shop prices, with 16% saying prices have increased significantly. This has led to behavioral shifts: over a quarter (27%) of those feeling the pinch are brewing more coffee at home, and 26% are cutting back on their overall consumption.

Impact of price rise

Despite the popularity of these chains, nearly half of Thai coffee drinkers (46%) have noticed a rise in prices at coffee shops, with 16% reporting a significant increase. Similarly, 45% have observed higher costs for coffee beans, grounds, or bottled coffee from supermarkets and convenience stores, with 13% noting a substantial hike. The price increases have driven changes in behavior: 27% of those impacted are brewing more coffee at home, 26% have cut back on their overall coffee consumption, and 20% are seeking out more affordable coffee shops. Meanwhile, 12% are opting for cheaper coffee drinks at their usual cafés, and 13% have switched from coffee to other beverages.

Consumers of The Coffee Club, Black Canyon, and Chao Doi are the most likely to report price increases, with about 61-62% indicating higher costs. Among these, The Coffee Club customers are particularly sensitive to price changes, with 31% saying prices have increased significantly. Conversely, customers of the most popular chains, All Café and Café Amazon, are less likely to report price hikes, with 50-49% noting increases.

SINGAPORE: Affordability concerns shift coffee consumption patterns

Singaporeans are avid coffee drinkers, with 79% consuming the beverage regularly and 58% doing so daily. Simiilar to Thailand, men (62%) are more likely than women (54%) to be daily coffee drinkers. Older generations—Gen X (85%) and Baby Boomers (83%)—again outpace younger consumers, with Gen Z (59%) being the least likely to drink coffee regularly.



Which major coffeeshops are most popular among regular coffee drinkers in Singapore?

When regular coffee drinkers in Singapore—defined as those who enjoy the beverage at least once a month—were asked where they typically buy their coffee, the homegrown chain Ya Kun Kaya Toast emerged as the top choice, with nearly two in five (39%) selecting it as their favourite.

Following closely are Starbucks and the local chain Toast Box, both preferred by over a third (35%) of regular coffee drinkers. The Coffee Bean & Tea Leaf, another U.S.-headquartered chain, comes in next, frequented by about a quarter (26%).

Trailing these popular choices, traditional coffee chain Fun Toast (formerly Kheng Nam Hong) and China-based Luckin Coffee each attract 16% of regular drinkers. Meanwhile, Killiney Kopitiam (15%) and Heavenly Wang (13%) also make the list, though their followings are smaller. Specialty cafés % Arabica and Huggs Coffee round out the top 10, with 5% of regular drinkers choosing them.



Do most coffee drinkers feel prices for their cuppa have risen or stayed the same?

When asked to reflect on their coffee spending at cafés and grocery stores over the past few months, most regular coffee drinkers in Singapore say prices have risen.

Almost three-quarters (73%) say ordering the beverage from coffee shops is now more costly, with two in five (39%) saying prices have increased by a lot.

About seven in 10 (69%) say buying coffee beans/grounds or bottled coffee from supermarkets / convenience chains / online stores is now more costly, with over a quarter (28%) saying prices have increased by a lot.



Across the top 10 coffee chains most frequented by regular coffee drinkers, majority of customers say prices of their usual coffee orders have increased in the past few months.

Overall, customers of local chains Heavenly Wang (86%), Huggs (83%) and Ya Kun Kaya Toast (81%) were relatively most likely to say so—at over eight in ten—while customers of international chains Starbucks (78%), % Arabica (77%) and Luckin Coffee (74%) were relatively least likely to say so.

How have coffee drinking habits changed among consumers who feel the pinch?

Almost a third of consumers who indicate their usual coffee purchases have grown more costly in recent months say they have ordered less from cafés and coffee joints and brewed their own cuppa more (31%), while a quarter have considerably reduced their overall coffee consumption altogether (26%).

Around a quarter of consumers have started buying more from cheaper brands/versions of coffee beans/grounds/bottled drinks when grocery shopping (24%), while a fifth now switch to buying more from coffee joints with lower prices (20%).

Meanwhile, a tenth have continued to stick with their usual coffee joints but are opting for coffee drinks lower down the price range (10%)—while 4% have largely switched from coffee to other beverages.

On the other hand, about a quarter (27%) of consumers have not changed their coffee drinking habits in response to a rise in coffee prices.

AUSTRALIA: Coffee rituals adapt to price hikes

Coffee is having a moment in Australia and not particularly for the right reasons (well, not if you consider news of coffee waste being used to build footpaths)—from Aussies cutting back on their pre-work coffee fixes to hospitality business owners ringing warning bells about future coffee prices. News about a surge in Robusta coffee prices and Arabica coffee sometime earlier, isn’t helping either.

How often do Australians drink coffee?

Australia is known for its coffee culture, with 66% of adults drinking coffee daily. However, the recent surge in prices has not gone unnoticed. 60% of Australians have observed higher costs at cafés, and approximately an equal number has noticed price hikes for coffee purchased from supermarkets or online stores.

Have rising coffee prices changed coffee drinking habits among Australians who feel the pinch?

As prices continue to climb, Australians are adjusting their coffee consumption in various ways. Despite the price pressures, 30% of Australians are holding firm, indicating that rising costs have not impacted their coffee drinking habits. However, a notable 12% of the population has stopped drinking coffee altogether, a significant shift given the importance of coffee in Australian daily life.

For those continuing to indulge, many are making changes to mitigate costs. Nearly a quarter (24%) have considered reducing the amount of coffee they drink, while 22% have switched to cheaper brands of coffee beans or grounds. Additionally, 11% have started frequenting more affordable coffee establishments, and 5% are opting for less expensive coffee orders at their regular spots.

Gender differences in response to price increases

The data also highlights distinct gender differences in how Australians are responding to rising coffee prices. Men are more likely than women to have made significant changes to their coffee habits: 17% of men have stopped drinking coffee compared to just 6% of women, and 27% have switched to cheaper coffee brands versus 18% of women. Furthermore, 14% of men have started visiting cheaper coffee establishments, compared to 8% of women.

In contrast, women are more likely to adapt by brewing more coffee at home, with 44% of women opting to make their own coffee more often, compared to 28% of men. This shift suggests that while men may seek out new or cheaper alternatives, women are more inclined to maintain their coffee consumption by reducing costs at home.

Across Thailand, Singapore, and Australia, rising coffee prices are driving changes in consumption habits. While the love for coffee remains strong, consumers are increasingly adapting their routines—whether by changing where they buy their coffee, opting for more affordable options, or cutting back on their overall consumption. 

---

The comprehensive analysis is a YouGov exclusive for Campaign Asia-Pacific. 

Methodology: The survey was conducted online in July 2024, using a questionnaire designed by YouGov. The data has been weighted by age, gender, and region to ensure it is representative of all adults aged 18 and older in Australia. For the Singapore analysis, a sample of 1,064 residents was surveyed, while the Thai analysis was based on a national sample of 2,056 residents.