If you're a Costco shopper who eats eggs, meat, fruits, vegetables,
and well, pretty much anything else you can think of, you might have to drop a
few extra bucks this month to stock your fridge. Here's the bottom line.
The Costco food court is easily one of the chain's biggest draws. After all,
it's not everywhere that you can get a hot dog and a soda for just $1.50. But last year,
soda, once a $0.59 staple, rose to $0.69, while the chicken bake entree increased
from $2.99 to $3.99. Several customers took to Reddit, with one lamenting,
"Final nail in the coffin of the chicken bake for
me. It's gone down in quality and a 33% price increase? No thank you."
Fortunately, Business Insider confirmed directly that the company has no plans to increase its
$1.50 hot dog combo, which is welcome news for hungry and budget-conscious customers.
Eggs are a hot-button issue among grocery shoppers right now. What was once a cheap
staple is now anything but. The increase is a result of a bird flu epidemic that's
causing a significant decrease in regular egg production and leaving Americans to
pay about 60 percent more for eggs than they did just a year earlier.
And Costco is no exception when it comes to these soaring egg prices.
Some shoppers have taken to social media to reveal that their local stores don't
even have any eggs available. But there may be hope, with one person posting
on Reddit in early 2023 that they found two dozen Kirkland brand eggs for $5.99.
If you've noticed a hike in butter prices lately, you're not alone. One person took
to Reddit to reveal that they found butter for $2.99 at Kroger, while forking over a whopping
$14 for it at Costco just the day before. However, Kroger shoppers might just have been lucky enough
to get a good deal that day because butter prices have been rising across the country for months.
Several supply chain factors have been influencing the price of butter,
including labor shortages, the cost of dairy feed, and the downward supply of milk. CNBC
reported in October 2022 that the typical price of Costco butter was about $4.37 per
pound. To really put it into perspective, the Consumer Price Index reported a price increase
on butter of 31.4 percent from December 2021 to December 2022. And unfortunately,
there's no indication that butter prices at Costco or anywhere else will drop any time soon.
"The egg's are going up, milk's going up, everything's going up."
When one curious shopper took to Reddit in late 2022 to ask fellow
Costco customers what they no longer buy at the chain because it simply isn't a
good value anymore, quite a few people got to clucking. As one person claimed,
"I used to meal prep with the chicken packs,
which used to be $12.99. I bought them every week. They went up to $21.99,
and they have come down a bit, but a $9 increase in a year is absolutely ludicrous."
Fortunately, one type of poultry that hasn't budged in price is Costco's famous rotisserie
chicken, which still sits at an affordable $4.99. It's reportedly remained at this price
point since 2009. The company is probably not making any profit from this item at this point,
instead allowing it to be a major loss leader, which is itself a slight relief for us.
The produce section of Costco is often one of the biggest draws for shoppers. Buying large
bags of apples, oranges, grapes, bananas, greens, and other fresh fruits and veggies at Costco can
save you a lot of money compared to traditional supermarkets. However, some shoppers have recently
noticed that they're paying higher prices for produce than they usually do, and the quality
of their fresh finds is dipping at some stores. As one person declared on Reddit in January 2023,
"Produce in general, both fruits and vegetables, is of questionable quality,
and we can usually do better at the local produce-focused market."
However, produce prices can fluctuate significantly in different regions,
and your local Costco might still offer the best bang for your buck.
So we recommend doing a quick comparison of Costco's prices with other supermarkets in
your area to determine where you can get the best value.
If you've noticed the price of milk going up at your local Costco, you're not alone.
One customer made a Reddit thread comparing milk prices at their location just 12 days apart. The
first price was $5.79 for two gallons of milk, and then during the second visit, it was up to
$6.59. And as of February 2023, some locations are selling cases of milk for upwards of $8.
In May 2022, CNN reported on the possibility of American shoppers seeing a 50 percent increase in
their milk costs for the foreseeable future. The issue traces back to the increased costs
of animal feed, fertilizer, and other necessary supplies for dairy farms. The supply-and-demand
strain has caused price fluctuations around the country. So for shoppers
who depend on Costco for low-price deals on everyday items, this development hits hard.
Frozen berries are typically not very cheap. The fresh versions can also be pretty expensive,
and when manufacturers have to take the extra time to freeze and package them to
make them last even longer, that increases the price that you the customer pay. Furthermore,
USDA data shows that frozen blueberries and strawberries are among the most expensive
of all fruits you can buy, compared to fresh, canned, and dried options.
Some Costco shoppers noticed the usual price of bulk bags of frozen berries creeping up
in early 2023. One person pointed out on Reddit that the store's Three Berry
Blend was last marked at $17.99 at their local store. Another person replied that
Sam's Club's frozen berries have been cheaper, proving again that comparison shopping is key,
especially when inflation is impacting your grocery bill.
Watch out, muffin lovers, as you may already be paying more than you're used to! In May 2022,
SheFinds reported that Costco's muffins and croissants had both
increased by $1 to $8.99 and $5.99, respectively. It's not a huge change,
but if you consistently shop the bakery section, you've probably experienced some sticker shock.
Other Costco bakery items have also gone up, so you might want to double-check what you're adding
to your cart. As one shopper noted on Reddit in 2023, a container of cinnamon loaves used to cost
$8.99, and now it's $14.99. And since the prices of milk, butter, and eggs are all increasing as
well, it's possible that we may see even more bakery price increases in the near future.
Bacon prices at Costco have been rising right along with everything else. As one shopper
revealed on Reddit, precooked Kirkland bacon at their location shot up to $17.99 from $9.99,
nearly double the original price. It was back down to $10.99 more recently, but only with a coupon.
Inflation is the culprit once again, along with several other factors affecting supply chains.
Global happenings like the war in Ukraine have been affecting the prices of groceries
in general in the United States. Kirkland bacon more specifically was reportedly a
hot commodity during the pandemic, which boosted prices. Overall, the high demand combined with
current inflation and production woes appear to be keeping the price at an all-time high.
"I was saving that bacon."
Even in the best of times, quality fish isn't very cheap in general. Nevertheless, shoppers
are upset that the fish at Costco is becoming almost totally unaffordable right now. Seafood
is definitely seeing a price hike, as several shoppers have confirmed on Reddit, with one
noting that they don't buy frozen salmon at Costco anymore because it just costs too much right now.
Unfortunately, the fishing industry seems to have been one of the hardest hit over
the past few years in the midst of supply chain issues. Furthermore,
natural fish life cycles have also reportedly hindered some aquatic populations. Additionally,
the war in Ukraine has left countries around the world with fewer options for seafood,
causing supplies to shrink and prices to rise.
Bagged salads and salad kits appear to be cheaper at other grocery stores than they
are at Costco lately. One shopper posted on Reddit about how their
nearby Sam's Club has had better deals on salads along with a few
other items on their grocery list. And as another customer tweeted in December 2022,
"As a working person, I have to buy my salad from Costco double the price. It was $2.99
1.5 years ago, and now it's $4.99. My wage is the same as 2.5 years ago."
This phenomenon is real, as the Consumer Price Index noted a 9.1
percent increase in prepared salad costs from December 2021 to December 2022.
Part of the reason for this increase is that farmers produced less lettuce
during the pandemic. Once production started ramping up again, a virus known as Impatiens
Necrotic Spot Virus started wreaking havoc on lettuce, affecting crops throughout 2022.
Experts believe that unusual climates are also partly to blame, as hot weather can
speed up the outbreak. Unfortunately, the effects of the virus are still being felt,
so it doesn't look like the prices of Costco's bagged salads and kits will drop anytime soon.
Fish and chicken have already been costing Costco customers more money than usual, and it's no
different when it comes to beef. As one concerned shopper asked on Reddit in February 2023,
"Anyone else's Costco no longer selling primal and
subprimal [cuts of] meat at a lower price? The ribeye specifically."
One person responded that the price hike was because of a nationwide shortage of prime beef,
according to an employee they spoke with, which sounds about right. The demand for
beef reportedly went down during the pandemic and has been somewhat erratic ever since. This
is partly because of inflation and partly because beef is simply too expensive for some people to
enjoy routinely. The wavering demand has put a strain on the beef industry, along
with issues affecting the world's beef supply, like droughts and sustainability requirements.
Have you noticed that brand-name sodas have become out of your price range lately? While
you might not be seeing a significant jump in prices for off-brand carbonated drinks,
well-known brands like Pepsi and Coca-Cola seem to be skyrocketing. Coke in particular
has become way too expensive at Costco and local supermarkets, with one shopper
noting on Reddit that 35 Diet Cokes used to cost them $10 but have ballooned to $16.
It seems that companies have felt the need to increase their prices to lower demand. In October
2022, Reuters reported that despite several price boosts, Coke and Pepsi have still managed to bring
in lots of sales. This has led them to continue to increase prices to get a more level supply-demand
balance. Because these two companies lead the soft drink industry in popularity,
they have some wiggle room to play around with pricing to meet their needs. Unfortunately,
that means customers are footing the bill in these already expensive and uncertain times.
Coffee lovers are experiencing sticker shock at Costco with
their recent purchases. As one shopper revealed on Reddit in January 2023,
Kirkland Colombian coffee used to cost $9.99, and now it's up to $15.99.
Like so many other products right now, coffee is getting double-whammied by
rising production costs and environmental factors affecting the supply. In August 2022,
The Wall Street Journal reported that major coffee distributors experienced a
significant decrease in production because of unusual weather patterns in Brazil,
which is the biggest producer and exporter of coffee in the world. Plus,
the coffee growing cycle runs on a two-year pattern, so odd-numbered years usually have
a lower production rate anyway, which could mean even higher prices as we move further into 2023.
The good news is that there are lots of coffee options available at most Costco stores,
so you still might be able to find something within your price range. Or you can wait for sales
and bulk up on extra packs of whatever is the most affordable during your next shopping trip.
"Welcome to Costco. I love you. Welcome to Costco. I love you."