The 'Pumpkin Tax' Adds Up: DIY Lattes Offer Significant Savings
Consumers face an average 8.4% markup on pumpkin-flavored products, with a homemade pumpkin spice latte costing a fraction of its cafe counterpart.
The seasonal surge in pumpkin-flavored items comes with a notable price increase, often referred to as the 'pumpkin tax.' A recent study found that pumpkin-spiced products carry an average markup of 8.4% compared to their non-seasonal versions. This figure is up from a 7.4% markup two years prior, though it remains lower than the 14.1% spike observed in 2022, which was attributed to drought conditions affecting pumpkin harvests.
Researchers analyzed the prices and sizes of 146 products, including coffees, donuts, and even ravioli, comparing pumpkin-flavored options from major retailers like Starbucks and Trader Joe's to their standard counterparts. The price disparity was particularly stark in the coffee category. For instance, Trader Joe's Pumpkin Spice Coffee was found to be 42.9% more expensive than its regular roast.
A Grande Pumpkin Spice Latte from Starbucks can range from $6.45 to $7.45 in price across various U.S. cities. Using third-party delivery services like Uber Eats can further increase this cost by a median of 23%, pushing the price towards $7.95 before delivery fees and tips. Despite these prices, consumer interest in the seasonal beverage remains high, with Google searches for "Pumpkin Spice Latte" reaching a five-year peak in 2026, showing a 10% increase.
To mitigate these costs, a DIY pumpkin spice latte recipe has been developed using ingredients from ALDI and Target. According to a spokesperson from Go Smoke Free, the company that compiled the recipe, consumers often overlook the cumulative cost of daily coffee purchases. The homemade version, using ALDI ingredients, slashes the cost by approximately 87% compared to the median Starbucks price, resulting in a cost of just $0.83 per Grande-sized cup. Using Target ingredients brings the cost to $1.01 per cup.
The suggested recipe for one serving using ALDI ingredients includes:
- 1½ cups of 2% milk ($0.30)
- 2 tablespoons of pure pumpkin purée ($0.13)
- 2 tablespoons of granulated sugar ($0.04)
- ½ teaspoon of vanilla extract ($0.15)
- 2 rounded teaspoons of instant coffee ($0.11)
- ½ teaspoon of pumpkin pie spice blend, plus ⅛ teaspoon for topping ($0.04)
- 4 tablespoons of whipped cream ($0.07)
By making two pumpkin spice lattes per week for a ten-week season, the ALDI-ingredient version costs approximately $16.60. This contrasts sharply with an estimated $129 spent at Starbucks, leading to a seasonal savings of over $112.
For those seeking to reduce sugar intake, substituting granulated sugar with a zero-calorie sweetener and omitting whipped cream are viable options. A sugar-free version made with Target ingredients costs $0.96 per serving and contains about 19.9 grams of total sugar, which is nearly 60% less than the Starbucks alternative. The price difference between homemade versions is largely dependent on the sweetener choice.
Starbucks prices were based on samples from one store in each state's largest city, while the DIY costs were calculated using standard grocery prices from ALDI and Target in Columbus, Ohio, for a Grande-sized serving.