Why Are Milk-Based Coffees Getting More Expensive?

If you’ve ordered a latte or cappuccino lately and noticed your usual cup costs more, you’re not alone. Many coffee drinkers in China’s Guangzhou region—especially in areas like Panyu and Shiqiao—are seeing higher prices at both global chains and independent cafes. With rumors swirling and then confirmed price hikes from Starbucks, customers are left wondering: why now, and why milk-based drinks in particular?

In short: yes, prices have gone up—by around 1 to 5 yuan per drink, mostly for milk-based coffees. Most independent cafes adjusted prices before Starbucks made its official announcement, and the biggest cost driver isn’t coffee beans, but rising fresh milk prices.

Starbucks Confirmed Multiple Price Increases

Reports first emerged online that Starbucks would raise drink prices, and the company later confirmed the changes on its official website. While no Starbucks locations exist in Panyu, the brand remains highly popular among young consumers. The price adjustments affected several beverages, contributing to broader concerns about whether other cafes would follow suit.

Local Cafes Also Raised Prices—But Not All at Once

In districts like Shiqiao, several cafes quietly increased their menu prices. These adjustments didn’t all happen at the same time—many took place before Starbucks’ official hike, and not all cafes changed prices simultaneously. Interviews with cafe managers revealed that price changes often occurred in the weeks leading up to the Lunar New Year.

At Sapphire Café in the Diamond Jewellery Plaza, some drink prices were visibly altered—either crossed out or covered with new price tags. The range of coffee prices in the market varies widely—from budget options at 20 yuan to premium drinks costing over 100 yuan—but most price increases were modest, generally between 1 and 5 yuan per drink.

Milk, Not Coffee Beans, Is Driving the Price Hikes

Managers at independent cafes pointed to fresh milk as the main culprit. Zhang, manager of Style Café near Jiejin Road, explained that while coffee bean prices have risen, those costs are more flexible due to multiple sourcing options. “Coffee beans come from many places, so there’s room to adjust,” Zhang said. “But fresh milk prices have gone up across the board.”

Zhang added that his shop began raising prices before the new year. For small, independent cafes, the pressure from rising milk costs and staff wages leaves little room for absorbing expenses without passing them on to customers. “We’re more exposed to these cost increases, so raising prices is often our only option,” he noted.

How Consumers Are Reacting to Higher Coffee Prices

Not all coffee drinkers are reacting the same way. Yang, an employee at an e-commerce firm in Guangming North Road, summed up the frustration: “I bet other cafes would raise prices after Starbucks did. It’s already expensive to go to a café, and now it’s even less worth it.”

Others take a more pragmatic approach. Gu, a customer at Chic Café in the Diamond Plaza, said, “Everything is getting more expensive. I just order fewer milk-based drinks like lattes or cappuccinos and stick to options that haven’t gone up. The atmosphere is still worth it.”

Frequently Asked Questions

Which coffee drinks have seen the biggest price increases?

Most price hikes—typically between 1 and 5 yuan—have been applied to milk-based drinks such as lattes and cappuccinos. Non-milk options or black coffees saw little or no change in most cases.

Did Starbucks raise its prices first?

Yes, Starbucks officially confirmed price increases across multiple drinks, which led to public discussion. However, many independent cafes in the region had already raised their prices before Starbucks’ announcement, especially in the lead-up to the Lunar New Year.

Why are milk-based coffees more affected by price hikes?

Fresh milk prices have risen across the board, and unlike coffee beans—which can be sourced from various regions—milk typically has less pricing flexibility. Coffee beans can be swapped based on supplier or origin, but fresh milk is a more uniform and universally priced commodity, making its cost increases harder to avoid.

Are all coffee shops raising their prices?

No. While many cafés, both chain and independent, have increased prices, the changes are not universal or simultaneous. Some cafes adjusted prices before Starbucks’ announcement, others afterward, and some have not raised prices at all.

What can coffee drinkers do to avoid higher prices?

Some customers are shifting away from milk-heavy drinks like lattes or cappuccinos and opting for black coffee, Americanos, or other non-milk options that have not seen price increases. Choosing simpler or less expensive drinks can help avoid the brunt of recent price hikes.

Recommended FrontStreet Beans for Milk-Based Coffees

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