Those who rely on that first sip of coffee to get out of bed in the morning have probably noticed that the cost of that caffeine fix is higher than it used to be. On average, roasted coffee prices across the United States have increased by approximately 11.8% from May 2024 to May 2025 – a bitter side effect of inflation — while instant coffee is up 12.4%.¹

Nowadays, the cost of a simple latte is $5.60 on average, and that’s before adding syrup, tax, and tip.² 

The cost of caffeine cravings

Empower Personal Dashboard^TM data shows coffee-lovers spent $44.50 a month on average as of May 2025, up 10% from five years ago. Gen Z spent the most in May at $51 a month, followed by Baby Boomers ($47.70), Millennials ($42.60), and Gen Z ($34.50).

In May, the price of roasted coffee ticked up 1.8% according to the Consumer Price Index – but some states are feeling the pinch more than others.³

The national median average for a cup of Joe comes in at $3.50 for a cup of regular coffee and $5.40 for cold brew.^4,5 One report found Hawaii had the most expensive coffee in the country, with an average price of $4.89. California was the second-most expensive, at $3.88. Nebraska is the state with the best bargain, at $2.12 a cup.⁶

Lower prices are brewing

The costly cup of coffee is a culmination of various inflationary pressures, from surging bean prices and supply chain disruptions to higher operating expenses and rising cost of other ingredients.⁷ Though consumer coffee prices are still up versus this time last year, coffee lovers hoping for a return to more affordable prices — or at least no further hikes — could be in for a treat.

Both the high-end arabica beans and the more budget-friendly robusta variety have seen drops in recent months amid strong production forecasts. Arabica futures are down more than 20% from their February peak, with the most-active contract falling as much as 1.3% to $3.28 a pound in mid-June.⁸ Similarly, robusta futures dropped 39% from close of February 11 to close of June 24.⁹

Coffee powerhouse, Illy, expects prices for unroasted beans to stabilize at $2.50 to $3 a pound over the next 15 months, down from a record above $4 in February.¹⁰ The shift could help protect customers from further price increases. 

The milk is extra

While the cost of coffee beans has been a significant driver of price increases, other ingredients, such as milk and sugar have also seen price hikes. The cost of milk increased 3.3% between May 2024 and May 2025, while sugar and sugar alternatives are up 3.5%, having surged 23% in the past 3 years.¹¹

Consumer preferences have changed, too. Americans are favoring more artisanal and specialty coffee drinks – think pumpkin spiced lattes, strawberry cold foam iced coffees, and the brown sugar shaken espresso. The National Coffee Association found 55% Americans indulged in a specialty beverage in the past week, a 6% increase from 2020 that was primarily fueled by espresso-based drinks. Regionally, specialty coffee consumption is stronger in the West (58%) and lowest in the Midwest (50%).¹²

Wake up and smell the coffee

With 60% of Americans reaching for a cup of Joe daily and 35% enjoying java outside the home at least four times a week, pricing pressures may be felt far and wide.¹³

Will consumers keep paying? For one cohort, it’s likely. Empower research reveals 62% of Millennials are willing to spend $7 on a daily coffee because of the joy it brings.