Assessing Price Responsiveness in the Coffee Market: Insights from Poland, Hungary, and Romania

Coffee consumption is a part of people’s purchase, influenced by various factors, particularly by changes in its price. Knowledge of the quantity consumed define when its price varies is significant for marketers, policymakers, and researchers of the economic situation. The paper presents an analysis of the sensitivity of coffee consumption to its price in Poland, Hungary, and Romania. It emphasises the relationship between price fluctuations and consumption patterns over time. Previous scientific papers have pointed out that the flexible nature of demand is key for the markets of foods and drinks and that the markets get impacted by pricing strategies. Earlier studies have looked at different economic factors that press on coffee drinking, but few of them focused on its price sensitivity in the Central and Eastern European markets. This article plans to fill this gap by conducting a quantitative analysis of price-consumption dynamics using historical market data for three selected countries. The results show large variations in the degree to which prices fluctuate in all three markets, indicating divergent behavioural responses and money conditions. Findings indicate that while coffee consumption remains relatively stable under normal circumstances, specific price levels trigger unequivocal responses in demand. These matters contribute to a clearer understanding of how price influences demand and provide valuable insights for pricing, policymaking, and market movement predictions. It provides empirical evidence on the relationship between coffee price and its consumption, hence enriching the field of consumer economics. It adds value to the literature by filling a regional gap and increasing knowledge about demand dynamics in Central and Eastern Europe, thus providing relevant insight for all parties involved in the coffee industry and the development of economic policies.