Does the upward trend in coffee prices alter consumption habits or the very essence of our coffee culture?
By Rony Junior El Daccache
That Cyprus is renowned for its vibrant coffee culture that has long been a cornerstone of its social fabric isn’t exactly news.
The high streets have long been coated with an endless supply of local and international coffee shops, but only more recently has there been a surge in specialty coffee shops that cater to high-quality beans and unique brewing methods. For example, nitrogen-infused coffee or nitro-coffee. Common to several cafes in Limassol, it is coffee infused with nitrogen gas. Why? Well, the nitrogen-infused caffeinated beverage is less acidic, naturally sweet and a much creamier consistency, making it a dream choice for those who need milk alternatives or sweeteners added to their coffees.
The only drawback? The price. The cheapest nitro-coffee averages at around €5, while the most expensive is around €7 – that’s almost the price of a pornstar martini these days!
Recent data from the Statistical Service of Cyprus reveals that the average price of a regular cappuccino here stands at €3.27, surpassing those in renowned coffee havens like France, Belgium, Germany and Italy.
France’s average price is currently at €2.97 and Italy’s only at €1.58.
Does the upward trend in coffee prices alter consumption habits or the very essence of our coffee culture?
“I happily spent €10 on takeaway coffee today, despite having a Nespresso machine at home and at my workplace,” confessed Danae, a devoted coffee drinker. This rings true to the popularity of delivering coffee, where a designated employee takes the offices’ coffee orders or for those who get their daily fix delivered to their homes.
“But yes, the prices have definitely been climbing every year since 2019 – even the kafeneia prices in Limassol are on the rise.”
The traditional Cypriot coffee shops, known as kafeneia, offer a sanctuary for those seeking more than just a caffeine fix. There is the warm embrace of board games, traditional music and the laughter of customers of all ages, where time is taken at a leisurely pace. Whether you’re savouring a Cypriot coffee or immersed in a game of tavli, there’s an unspoken agreement among customers to embrace relaxation – a testament to Cyprus’ rich cultural heritage.
Yara, another coffee drinker, reflected on the cultural nuances between European countries. She mentioned Italy’s coffee culture which tends to be more fleeting compared to Cyprus’ more leisurely gatherings. Indeed, statistics indicate that over 90 per cent of Italians indulge in at least one cup of coffee daily, but with strict rules such as avoiding milk after 11am – an anomaly in Cyprus for those not drinking a traditional Cyprus coffee.
And of course, here it is not just cow’s milk. There is the bewildering array of milk alternatives that are on offer – usually at additional cost.
“I sympathise greatly with those who opt for milk alternatives,” Danae remarks, saying that those who choose substitutes like oat, coconut, or almond milk endure mark-ups on top of already inflated prices, typically an extra 50 cents at most coffee shops. Except for Zorpas’ Coffeeberry, as I recently discovered.
Amid rising costs of properties in Limassol, a local coffee shop owner voiced profitability challenges as she just experienced a “10 per cent rise in rent just last month” for the prices she charges. Rising rent prices along with inflation are making it harder for businesses to afford their costs, they say.
According to statistics on Numbeo, renting in a one-bedroom flat in Limassol at the moment only has a €1,000 price difference with London. It almost feels dystopian where I am drawing comparisons to rent prices in London and Limassol but here we are.
Furthermore, salaries after tax are 111.5 per cent higher in London. Is this motive for a rise in salaries or a price cap on extortionate rent prices?
Moreover, Statista reported that Cyprus’ coffee market’s revenue for the year amounts to €86.5 million, with a projected annual growth rate of 3.69 per cent between 2024 and 2028, alongside a 2.0 per cent volume growth anticipated in 2025 hinting at its continuous growth despite economic shifts.
Caique, a seasoned barista at Gloria Jean’s Nicosia, noted only marginal price increases since 2021, attributing them to pandemic-induced disruptions. Yet, he remains optimistic, emphasising the loyalty of regular customers and a noticeable influx of visitors especially over the past two years.
In essence, as Cyprus grapples with the ramifications of inflation on its cherished coffee culture, the resilience and devotion of its coffee enthusiasts remain steadfast, underscoring a cultural bond that transcends economic fluctuations.