Prices Are Rising At Costco On These Food Items
Virtually no store is a stranger to rising prices right now (thanks, inflation!). According to the USDA, grocery store prices have risen 11.8% from December 2021 to December 2022. And in 2022 alone, food costs increased by 9.9%. As a result, frequent Costco customers are particularly disappointed that some of their go-to items are getting more expensive at their local store. The company's business model is designed to keep costs lower by packaging items, like eggs, meat, and frozen foods, in bulk — but even that doesn't insulate Costco from occasional price hikes. And some customers are even taking to social to vent about higher-than-ever prices, like one Twitter user who showed their receipt for $1,529.60, stating, "Groceries prices suck. Costco bill hurt today."
CNBC reported that Costco membership prices are likely hiking as well in the not-so-distant future, which could put an even more significant strain on shoppers. But until that happens, customers are focused on the prices in their carts. Read on to find out which bulk food items are seeing a major markup, making some fans question whether they're really getting the best deals at Costco.
Food court items
The Costco food court is easily one of the chain's biggest draws. Shopping trips can be lengthy and tiresome, especially with kids in tow, and the food court's affordable and tasty options give shoppers something to look forward to. After all, it's not everywhere that you can get a hot dog and soda for just $1.50.
But last year, the company announced price increases on two food court items, and regular Costco shoppers aren't thrilled about it. According to Business Insider, soda — once a $0.59 staple — rose to $0.69, and the chicken bake entree got a full $1 increase from $2.99 to $3.99. The prices went up at Costco locations across the country. Several customers took to Reddit, admitting that the prices are disappointing, with one Redditor stating, "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 customers looking for a deal.
Eggs
Eggs are a hot-button issue with grocery shoppers right now. What was once one of the cheapest items you could add to your shopping cart has now becoming one of the priciest items on your list. The problem is even causing people to come up with creative egg substitutes for meals and baked goods. According to CBS News, recent egg prices are a result of a bird flu epidemic that's causing a significant decrease in regular egg production and leaving Americans to pay about 60% more for eggs than they did just a year earlier.
Unfortunately, Costco is no exception when it comes to soaring egg prices. Some Redditors mention that their local Costco stores don't even have eggs to buy, while others state that they're paying much more than they were even a few months ago for eggs at Costco. Fortunately, a more recent Reddit thread offers some hope on Costco for customers that egg prices may be heading back down, with another poster sharing that they found Kirkland brand's eggs for $5.99 for two dozen.
Butter
If you've noticed a hike in butter prices at Costco, you're not alone. One Redditor posted a photo of butter for just $2.99 at Kroger, noting that the day before, they paid a whopping $14 for butter at Costco. However, it seems that 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.
In October 2022, CNBC reported that several supply chain factors were influencing the price of butter, including labor shortages, the cost of dairy feed, and the downward supply of milk. At the time, the typical price of Costco butter was about $4.37 per pound. One month prior, a Twitter user point out that, "18 months ago a tub of butter at Costco cost $5.99. Today it's $8.99!" To really put it into perspective, the Consumer Price Index reported a price increase on butter of 31.4% from December 2021 to December 2022. And unfortunately, there's no indication that butter prices at Costco or anywhere else will drop by much any time soon.
Chicken
When one curious Redditor asked other Costco shoppers what they no longer buy at the chain because it simply isn't a good value anymore, quite a few people responded that chicken is one of the items they've cut from their shopping lists. 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." Another shopper even goes as far as to claim that they think Costco is "price gouging," stating, "Price of chicken and turkey was insane over the last few months and has continued to increase. Saw a 3-pack bag for $50 today, which is insane. Turkey was $16 and has been $23 for the last year, not moving down one bit."
Fortunately, one type of chicken that hasn't budged in price is Costco's famous rotisserie chicken, which still sits at an affordable $4.99. According to The Hustle, the rotisserie chicken has stayed at this price point since 2009, and the company is probably not making any profit from them at this point, allowing the product to become a major loss leader for Costco. So you can feel pretty sure that the rotisserie chicken price won't be changing anytime soon, and that's one thing to look forward to filling your cart with on your next trip to Costco.
Produce
The produce section of Costco is often one of the biggest draws shoppers have to their local store. If your family has a lot of big fruit or veggie eaters, buying large bags of apples, oranges, grapes, bananas, greens, and other fresh produce at Costco can save you a lot of money over traditional supermarket shopping. However, some Costco shoppers have recently noticed that they're paying higher prices for produce than they usually do at Costco, and the quality of their fresh finds is dipping at some stores.
As one Redditor stated 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." Other commenters in the same thread agreed that they tend to get a much better value with higher quality produce at their local supermarkets or farmer's markets. One Redditor in particular said, "I also default to other grocers for certain vegetables like potatoes, carrots, and onions."
However, produce prices can fluctuate significantly in different regions, and your Costco might still offer the best bang for your buck. Therefore, we suggest doing a quick comparison of Costco's prices with other supermarkets in your area to determine where you can get the best value on your fruits and veggies.
Milk
Have you noticed the price of milk going up at your local Costco? You aren't the only shopper to see a difference. One customer started a started a Reddit thread comparing milk prices at their Costco just 12 days apart. The first price was $5.79 for two gallons of milk. At the second visit, the cost went up by almost $1 to $6.59. That thread was created in early 2022. Near the end of the same year, the price was even higher, according to some shoppers. For example, one tweet mentions Costco milk still hovering around $3.50 per gallon, putting it at $7 for a 2-pack. And as of February 2023, some Costco locations are selling cases of milk for upwards of $8.
In May 2022, CNN reported the possibility for American shoppers to see a 50% increase in their milk costs for the foreseeable future. It 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, hitting more stores than just Costco. Still, for shoppers who depend on Costco for low-price deals on everyday items, this cost increase hits hard.
Frozen berries
We'll start by saying that frozen berries are typically not cheap to buy. Fresh berries can be pretty expensive on their own, but when manufacturers have to take the extra time to freeze and package berries to make them last even longer, that increases the price you pay for that work, according to The Market at DelVal. Additionally, 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 fruit options.
Still, some Costco shoppers noticed the usual price of bulk bags of frozen berries creeping up at the beginning of 2023. In a Reddit thread calling out Costco items that have been increasing in price, multiple customers confirmed that frozen berries have become more expensive for them to buy. One person specifically stated that Costco's Three Berry Blend was last marked at $17.99 at their local store. Another person replied that, for them, Sam's Club's frozen berries have been cheaper, proving again that comparison shopping is key, especially when inflation is impacting the grocery bill.
Bakery items
Costco bakery fans, don't look now, but those muffins you buy during every Costco shopping trip have probably already gone up in price. In May 2022, SheFinds reported that both muffins and croissants had increased by $1 to $8.99 and $5.99, respectively. It's not a huge change, but people who consistently shop the bakery section and know its prices by heart are experiencing some sticker shock over their favorite items putting a bigger dent in their wallets.
Other bakery items at Costco have also increased in price, so you might want to double-check what you're adding to your cart. For instance, one Redditor says, "I found an old container that held Cinnamon loaves I kept to use for Christmas cookies, and it said $8.99. Currently, the same item is $14.99." Another Redditor claims that danishes were up to $11.99 at their store. And since milk, butter, and eggs are all experiencing price increases, it's possible that we may see some other changes to Costco's bakery prices in the not-so-distant future.
Bacon
Bacon prices at Costco have been rising right along with other items. One shopper on Reddit mentioned that the price of bacon at their store has gone up, while another replied that precooked Kirkland bacon at their location shot up to $17.99 from $9.99, close to double the original price. They did note that the price was back down to $10.99 more recently — but only with a coupon.
What's going on with bacon? Inflation strikes again, according to CBS News, along with several other factors causing supply chains to remain out of whack. The report says global happenings, like the war in Ukraine, also affect prices of groceries in general in the United States, sort of like a chain reaction that spirals out of control. GoBankingRates also notes that Kirkland bacon at Costco, specifically, was a hot commodity during the pandemic, which boosted prices at the time. The high demand for the breakfast meat combined with current inflation and production woes seem to be keeping the price at an all-time high. Maybe it's hopeful to note that one Redditor discovered the price recently went down to $16.99 for a package at their local Costco — but that's still a pretty steep price to pay for your bacon fix.
Fish
Let's start by saying that quality fish isn't usually a cheap item to buy. But shoppers aren't happy that the price of fish at Costco is becoming almost totally unaffordable right now. In March 2022, a Twitter user predicted that fish and beef prices were going to skyrocket based on the prices they saw at Costco: "Was just at Costco...beef and fish I bought just last year is 2x the price now, this is not going to end well. Inflation is a really, really big problem that is going to absolutely crush people ... buckle up." They weren't wrong. Fish is definitely seeing a price hike, as several shoppers have confirmed on Reddit, with one even stating that they don't buy frozen salmon at Costco anymore because it's gone up too much in price.
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. Fox Business also reports that natural fish life cycles have actually hindered some fish populations, like perch. Additionally, the Russian-Ukraine war has also left countries around the world without as many options for seafood, causing supplies to shrink and prices to rise.
Bagged salad and salad kits
A few Redditors have mentioned that bagged salads and salad kits are cheaper at other grocery stores than at Costco lately, with one stating that their nearby Sam's Club has had the better deals on salads along with a few other items on their grocery list. One Twitter user also mentioned the heightened prices on Costco salads 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." They're not imagining it, either. The Consumer Price Index notes a 9.1% increase in prepared salad costs from December 2021 to December 2022.
Part of the reason for increased salad prices is that farmers produced less lettuce during the pandemic, reports Benzinga. Then, once production started ramping up again, a virus known as Impatiens Necrotic Spot Virus (INSV) 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 that virus are still being felt, so it doesn't look like the prices of Costco's bagged salads and kits will drop in the near future.
Beef
Fish and chicken have already been costing Costco customers more money than usual on their shopping trips. And beef has been experiencing price increases, too. One Reddit user asked 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, according to an employee they spoke with, was because of a nationwide shortage of prime beef.
Sounds like they're right. According to a Bloomberg article published in January 2023, the demand for beef went down during the pandemic and has been somewhat erratic ever since, 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. Perhaps it's time to weave more meatless meals into your meal plan each week to save money.
Brand-name sodas
Have you noticed that brand-name sodas have become out of your price range at Costco? 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 in price. A few Redditors noted that Coke, in particular, has become way too expensive at Costco and their local supermarkets, with one person saying that 35 Diet Cokes used to cost them $10 but now cost $16.
It seems that companies have felt the need to increase their prices to decrease demand. In October 2022, Reuters reported that, despite several price boosts, Coke and Pepsi have still managed to bring in lots of sales, causing them to continue to increase prices to get a more level supply-demand balance. Because these two companies lead the industry in popularity, they have some wiggle room to play around with pricing to meet their needs. Unfortunately, Costco customers and other grocery shoppers are footing the bill in already expensive and uncertain times.
Coffee
Coffee lovers are experiencing sticker shock at Costco with their recent coffee purchases. One Redditor said in January 2023 that they used to buy "Kirkland Colombian coffee ... for $9.99, now it's $15.99!" And another Redditor commented that they're paying about $20 for it at their local Costco.
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 might be able to find something within your price range. Plus, several Redditors suggest waiting for sales and grabbing up extra packs of whatever is the most affordable during your next shopping trip.