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Why Is Iced Coffee So Expensive?

Why Does the Cost of Iced Coffee Keep Increasing?

Why on earth does your iced coffee keep getting more expensive? Business Insider shares the reason for the rising cost.

If you've ever wondered why your iced coffee costs more each year, Kurt Soller at New York Magazine's Grub Street has finally gotten to the bottom of it.

RELATED: Actually, Caffeine Turns Hard Workers Into Slackers

Adding ice to regular coffee may seem simple on its face, but a lot more is factored into the costs than the price of the beans.

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Here's Soller's breakdown:

1. Many coffee shops skip the easy add-ice method and use a special cold brew, which involves pulverizing coffee beans with water and diluting it, ultimately requiring twice as much ground coffee.

2. The price of the clear plastic cups or compostable cups used for the drinks depends on the corn and petroleum markets because of their material. Overall, those cups can cost twice as much as the regular paper cups used for hot brews.

3. The increased use of straws and napkins increase the coffee's paper costs by about 20 percent, one coffee shop owner told Soller.

4. And lastly, the ice machine itself costs about an extra $12 per day.

In the end, shops wind up charging at least $3 per cup to meet their demands and turn a profit.

Now's a good chance to knock your caffeine addiction and save yourself an extra $20 per week, but if that's a little too extreme, here's another option: try signing up for a rewards card at your favorite coffee shop.

Check out these smart Business Insider stories:

The Best Alternatives to Paying For Cable

Focus on Quality Brands That Hold Up Over Time

Thirteen Things You Can Stop Wasting Money On

This Is the Most Expensive Drink You Can Possibly Get at Starbucks

Source: Flickr User Marco Arment

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Jiniya Jiniya 4 years
Or make your own iced coffee! My tastes are simple, and I use double strength instant coffee with lukewarm water, a bit of cane sugar, organic milk and flavored creamer, usually vanilla. It nearly fills up my 30 oz tumbler and costs mere cents to make, even with the slightly pricier milk.
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