Seoul: Major coffee chains and instant coffee producers across South Korea are raising prices amid escalating raw material costs, as indicated by recent industry data.
According to Yonhap News Agency, Angel-in-us Coffee, operated by Lotte GRS Co., announced an increase in beverage prices by 200 to 300 won (US$0.15-0.22) starting Thursday. Likewise, CJ Foodville Corp.'s bakery cafe chain, Tous Les Jours, is set to raise prices on 32 coffee items by 100 to 300 won on Friday.
These price adjustments follow earlier hikes this year by other prominent coffee brands such as Starbucks Korea, Hollys, and Paul Bassett. Even budget coffee brands like Baekdabang and Mega MGC Coffee have not been immune to the rising costs, having adjusted their prices in recent months.
Dongsuh Co., a leading producer in the off-the-shelf instant coffee market, announced that it will increase factory prices by an average of 9 percent as of Friday. Additionally, prices for ready-to-drink beverages, including popular brands like Maxim T.O.P and Maxwell House, will see an average rise of 4.4 percent.
The company had previously raised prices in November, attributing the increase to the rising costs of global coffee beans and palm oil, compounded by persistent foreign exchange pressures. A company official highlighted that "unusual climate conditions have driven up raw material costs, prompting the retail price hike."