Coffee drinkers turning to whole beans as prices soar, says Lavazza

Coffee drinkers are increasingly opting for whole beans as rising prices drive a shift toward quality over quantity, according to Italian coffee roaster Lavazza. The company's chairman, Giuseppe Lavazza, highlighted this trend as one of the most significant developments in the coffee industry, noting that consumers are seeking better experiences at home. Sales of whole beans saw a substantial surge in the UK, with a 20.3 percent increase in volume by the year to May, significantly outpacing the 2.8 percent growth in overall at-home coffee consumption. By value, whole bean sales rose 36.8 percent, while unit sales of bean-to-cup machines grew by 33.5 percent. This shift reflects broader changes in consumer behavior, driven by higher coffee prices and a desire for more personalized brewing methods. The upward trend in whole bean purchases follows four years of instability in global coffee markets. Unfavorable weather conditions and poor harvests led to record prices for both arabica and robusta beans in 2025, prompting frequent price hikes from roasters. In the UK, home coffee prices climbed by 6.3 percent in the year to May, according to Nielsen data. The simultaneous rise in both types of beans limited roasters' ability to manage costs by substituting more expensive arabica with robusta, which is typically used in instant coffee and espresso blends. This trend is not confined to the UK. In France, whole bean sales increased by 35 percent by value, while Italy and Germany saw gains of 33 percent and 31.2 percent respectively in the same period. In Germany, the largest coffee-consuming country in Europe, whole beans have become a larger category than traditional roast-and-ground coffee. Lavazza noted that German consumers are increasingly interested in machines capable of producing specialty drinks such as cappuccinos and flat whites. The movement toward whole beans and associated brewing equipment gained momentum during the early stages of the pandemic, when lockdowns and remote work encouraged households to invest in coffee-making tools. The sustained growth in both whole beans and machines indicates that this preference has endured even as many consumers return to cafes and office environments. In the United States, similar patterns are emerging, though the transition is less pronounced. NielsenIQ data shows a 3.2 percent increase in whole-bean unit sales over the past 52 weeks, while pod sales dropped by 4.9 percent and ground-coffee sales decreased by 3.9 percent. Despite these trends, the U.S. market continues to show signs of evolving preferences among consumers. Lavazza emphasized that the coffee market remains volatile, with prices still subject to fluctuations due to ongoing supply chain issues. Although arabica and robusta futures have eased from their peak levels, the company does not anticipate a reversal in pricing strategies soon. “We think there is not time to think about a possible cut in prices,” Lavazza stated. “The possibility of another increase of price lists is not totally over.” To stabilize the market, Lavazza pointed to the need for at least two successful harvests in major producers like Brazil and Vietnam. However, recent weather disruptions, including unexpected rainfall in Brazil and potential impacts from frost and El Niño, pose challenges to achieving this stability. Farmers, benefiting from years of high prices, are now in a stronger financial position and can choose to hold back coffee rather than sell immediately. Meanwhile, roasters remain cautious, waiting to determine if prices will continue to decline. Lavazza described the coffee market as having undergone a fundamental transformation in terms of supply and demand. “Volatility is the new constant of our business environment,” he remarked. The company reported revenues of €3.9 billion in 2025, representing a 15.7 percent increase, while earnings before interest, tax, depreciation, and amortization rose 8.8 percent to €340 million. As part of its strategy to maintain relevance in the changing landscape, Lavazza is introducing a new product called Tablì in the UK later this year. This innovation replaces the plastic or aluminum casing of traditional pods with a compressed coffee tablet, aiming to reduce waste while maintaining a single-serve format. Customers will still require a dedicated machine to use the product, but Lavazza believes this approach aligns with growing consumer demands for sustainability and convenience.