Starbucks' Pumpkin Spice Latte: A Seasonal Beverage's Price Premium Explained

The article discusses the "pumpkin spice tax," a nickname for the premium consumers pay for pumpkin-flavored goods each fall. While there is no literal tax, the cost of real pumpkin puree and synthetic flavorings, as well as the drink's perennial popularity, contribute to the price. Starbucks' fall menu, including the Pumpkin Spice Latte, launched without a price increase this year. However, some consumers feel that prices have increased over time, with 44% of 2,200 surveyed people believing that inflation and tariffs have driven up prices.

As the calendar turns to August, coffee enthusiasts eagerly await the return of Starbucks' fall menu, a staple of the season that includes the iconic Pumpkin Spice Latte (PSL). This year, the menu launched on August 26, 2025, bringing back fan favorites and new seasonal offerings. However, some consumers are concerned about the rising cost of their favorite fall beverage, leading to the concept of a "pumpkin spice tax."

The "pumpkin spice tax" is a nickname for the premium consumers pay for pumpkin-flavored goods each fall. While there is no literal tax, several factors contribute to the price increase. The cost of real pumpkin puree, which Starbucks uses in its PSL, fluctuates seasonally but is generally more expensive than synthetic flavorings. Additionally, the drink's perennial popularity drives demand and, consequently, prices.

In recent years, there has been a perception that prices have increased. A study by LendingTree found that 44% of 2,200 people surveyed believe inflation and tariffs have driven up the cost of pumpkin-flavored products [1]. Despite these concerns, the 2025 fall menu launched without a price increase for the PSL compared to last year, with a Grande PSL priced between $5.75 and $7.25 in U.S. company-operated stores [1].

However, the pumpkin spice tax notion extends beyond Starbucks. Retailers like Dunkin', Dutch Bros, and 7-Eleven also cater to the pumpkin-flavored trend, with prices sometimes in a similar range, contributing to the overall seasonal cost premium [1].

While the pumpkin spice tax is mostly a reflection of seasonal demand and ingredient costs, the combination of tariffs and supply pressures means coffee prices could soon feel pricier at the checkout this year. Brazil, the largest coffee exporter to the U.S., has faced a 50% tariff since August 6, 2025, adding to the cost of imports [1]. This tariff increase comes alongside existing challenges like drought and global demand, which have already driven prices up by about 11% year-over-year as of May 2025 [1].

In conclusion, while the pumpkin spice tax is not a literal tax, the cost of real pumpkin puree and the drink's popularity contribute to the price. The 2025 fall menu launched without a price increase, but the combination of tariffs and supply pressures could lead to higher prices for coffee lovers this year.

References:
[1] https://www.kiplinger.com/taxes/the-pumpkin-spice-tax-and-your-fall-coffee-budget
[2] https://economictimes.indiatimes.com/news/international/us/pumpkin-spice-is-back-starbucks-reveals-launch-date-and-menu-favorites-across-florida/articleshow/123505457.cms
[3] https://www.wkyc.com/article/news/nation-world/starbucks-pumpkin-spice-latte-back-new-fall-menu-items/507-4340de61-8333-4403-97c5-d277e5c898d3