According to Statistics Canada, coffee prices in grocery stores have risen by 32 per cent since January, primarily due to higher import costs and global market distortions caused by tariffs.

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It was only a matter of time before Canada’s coffee chains began adjusting prices. Tim Hortons was first out of the gate, announcing a price hike of roughly three cents per cup on average — a modest but symbolically significant increase.

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In an increasingly cashless economy, where digital payments obscure price sensitivity, such adjustments are less likely to trigger consumer backlash. Still, this marks a new chapter in the economics of coffee, where perception and psychology play as much a role as the price of beans.

Despite common belief, the cost of coffee beans represents less than 10 per cent of what consumers pay for a cup at their local café. The remainder is absorbed by labour, rent, equipment, and energy — costs that have risen sharply in recent years. This means that even if global coffee bean prices were to stabilize, the price of your daily latte likely would not.

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