German Retailers Cut Coffee Prices After Years of Increases

In Germany, prices for coffee from well-known brands have started to decline after several years of steady increases that had weighed heavily on consumers. Major grocery store chains have begun reducing prices on products including Jacobs, Lavazza, Dallmayr, and Melitta, following earlier cuts on their own private-label coffee brands.

A survey conducted by the German news agency found that discount retailer Lidl was among the first to initiate price reductions on commercial coffee, cutting prices by up to 10%. Kaufland followed a similar approach, adjusting prices for the same products across all its branches nationwide. Additionally, the Aldi Nord and Aldi Süd chains announced permanent price cuts on several branded coffees.

Price reductions have extended to most major food retailers, with some declaring plans to lower prices as well, though they have yet to disclose which brands or new price points will be affected. The Edeka chain stated that prices for some of its private-label coffee products have already dropped, with further reductions expected soon.

Rewe and Penny also confirmed their intentions to adjust prices on the mentioned products, while Netto indicated it will reduce prices in line with market developments. Conversely, Norma announced it will not implement additional price cuts, noting that it had already lowered prices on 14 private-label coffee products in mid-May, and those reductions remain in effect.

Factors Behind Price Fluctuations

The current wave of price decreases follows years of sharp increases in coffee prices, driven by rising raw material costs due to poor harvests in key coffee-producing countries. Traders and experts attributed these price hikes to droughts and declining production, particularly in Brazil, the world's largest coffee producer, which directly impacted retail prices in German markets.

Retail coffee prices began to fall in the autumn of 2025 when major chains reduced prices on their private-label coffee products for the first time in a long period. This was followed by another round of cuts in May 2026, reaching up to 50 cents (approximately $0.54) per package.

Despite this downward trend, data from the German Federal Statistical Office shows that coffee prices remain significantly higher than the levels recorded in 2020, indicating that consumers have not yet returned to the price levels seen before the global coffee price surge.