Global coffee prices fall, but Israeli shoppers pay more

International coffee prices have dropped sharply, yet Israeli shelf prices kept rising. According to the International Coffee Organization, the ICO composite coffee index fell 23.4% in May 2026 versus May 2025, and by 19.8% in June 2026, based on data available through June 11, versus June 2025. Over the same period, a consumer-price sample by the Retail Research Institute found the average Israeli shelf price for coffee products rose 14.4%. The gap is exactly what bothers Israeli consumers, when raw material costs fall, the discount does not reach the shelf.

The ICO index fell from 334.41 US cents per pound in May 2025 to 256.05 cents in May 2026, down 78.36 cents. Major categories also declined, including Robusta, down about 30%, Brazilian Naturals, down 22.7%, Other Milds, down 20.7%, and Colombian Milds, down 18.2%. In June, the composite index fell from 295.06 cents to 236.52 cents, with similar declines across the main categories.

The Israeli survey examined 35 coffee product observations across supermarket chains in June 2025 and June 2026, including promotions. The average price rose from 19.85 shekels to 22.71 shekels, an increase of 2.86 shekels per item. The steepest rise was at Yesh Chasad, where the average climbed 27.7%, followed by Shufersal Deal, Osher Ad, Yohananof, Carrefour Hyper, Victory and Rami Levy, all posting double-digit increases.

The increases were not limited to premium products. Elite Turkish coffee with cardamom at Osher Ad rose 45.9%, Landwer coffee capsules at Shufersal Deal rose about 38.8% and 38.6%, and Elite Brazilian coffee at Yesh Chasad rose 32.5%. The report says Israel’s coffee market is dominated by Strauss Elite and Osem Nestlé, with strong brand loyalty, limited price-breaking competition, and weak results from parallel imports. Carrefou’s state-basket pricing shows some leading brands can be cheaper under special constraints, but not across the wider market.