Earlier than the air has even cooled in lots of locations and tree leaves have but to fall, Starbucks’ Pumpkin Spice Latte (PSL) has as soon as once more returned to sign the unofficial begin of autumn.
Since its debut greater than 20 years in the past, the PSL has change into beloved by many fall fanatics worldwide. Starbucks stories that tons of of tens of millions of PSLs have been offered, making it the corporate’s hottest seasonal beverage.
This 12 months, Starbucks formally launched its fall menu on August 26, 2025, marking an early begin to the season, catering to keen pumpkin spice lovers.
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Nevertheless, some customers really feel that the value tag of their favourite fall beverage has steadily elevated. In recent times, that concern has given rise to speak of a so-called “pumpkin spice tax.”
However is that pumpkin worth premium actual? And what occurs with Trump tariffs within the combine? Right here’s extra to know.
Regardless of inflation pressures and looming tariffs, the 2025 Starbucks fall menu launched and not using a PSL worth improve in comparison with final 12 months.
A Grande PSL is priced between $5.75 and $7.25 in U.S. company-operated shops. (Notice: Costs for Starbucks gadgets can fluctuate by area and particular person retailer location.)
However final 12 months, LendingTree discovered that “on common, pumpkin-flavored merchandise value 7.4% greater than their nonpumpkin alternate options.”
This 12 months’s “Pumpkin Premium” report by Empower finds that 44% of these surveyed imagine tariffs and inflation are making pumpkin-flavored gadgets value extra. About “39% say the ‘pumpkin spice tax’ or the premium worth on seasonal gadgets is actual.”
However in accordance with the analysis, greater than half (54%) of these surveyed stated “shopping for these merchandise is one thing they stay up for each fall.”
About one in three consumers stated they had been prepared to pay extra to benefit from the seasonal taste, spending on common $32 per thirty days on pumpkin spice gadgets throughout autumn, with millennials doubling that quantity at $64.
So, what concerning the “pumpkin spice tax”?
- The pumpkin spice tax isn’t a literal tax. It’s basically a nickname for the small premium customers pay for pumpkin-flavored items every fall.
- What contributes to the premium? Wholesale pumpkin costs fluctuate seasonally however sometimes vary from $0.30 to $0.60 per pound, which is extra expensive than artificial flavorings.
Additionally, Starbucks reportedly makes use of actual pumpkin puree in its PSL recipe, which is produced from kabocha squash. That and the drink’s perennial reputation possible issue into the value customers pay.
What’s a pecan cortado from Starbucks?
Starbucks’ 2025 fall menu additionally features a new pumpkin-inspired drink referred to as the Pecan Oatmilk Cortado, together with returning favorites just like the Pumpkin Cream Chilly Brew, Iced Pumpkin Cream Chai, and Pecan Crunch Oatmilk Latte.
On its web site, the espresso firm describes the Pecan Oatmilk Cortado as a mixture of “three photographs Starbucks Blonde Espresso with notes of pecan, wealthy brown butter, and vacation baking spices and steamed oatmilk…then sprinkled with a pecan crunch topping and served sizzling in an 8-ounce cup.”
It’s additionally price noting that the pumpkin spice tax notion extends past Starbucks.
Retailers like Dunkin’, Dutch Bros, and 7-Eleven cater to the pumpkin-flavored development. The costs of their merchandise are typically in an analogous vary, contributing to the general seasonal value premium that customers expertise with fall espresso.
So whereas pumpkin spice lovers would possibly grumble about paying a premium for his or her seasonal repair, the “pumpkin spice tax” is usually a mirrored image of seasonal demand and ingredient prices.
Will Trump tariffs drive up espresso costs in 2025?
However…espresso costs are anticipated to be pushed increased partly attributable to President Donald Trump’s tariff insurance policies. That’s largely as a result of, since August 6, 2025, Brazil, the biggest espresso exporter to the U.S., has confronted a 50% tariff, including considerably to the price of imports.
That tariff improve comes alongside current challenges, like drought and international demand, which, in accordance with Bureau of Labor Statistics knowledge, have already pushed costs up by about 11% year-over-year as of Might 2025.
Some analysts warn that these prices will possible be handed on to customers.
So pumpkin spice apart, the mix of tariffs and provide pressures means your favourite brew may quickly really feel pricier on the checkout this 12 months. Keep tuned.
