Will coffee prices increase in 2026?
Price Forecasts and Market Outlook Looking further ahead, the bank expects prices to normalise to $2. Trading Economics projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026. India Coffee Market was valued at USD 478 Million in 2022 and is expected to reach USD 1,227. Million by 2032 at a CAGR of 9.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.Coffee prices have been skyrocketing for months. Earlier this year, global prices hit record highs due to supply issues in major producing countries such as Brazil and Vietnam. At the same time, U. S. Brazil have upended the global coffee market, pushing prices upwards.Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.Situated in South America, Brazil is the top producer of coffee. They produce 2,68 million metric tons of coffee on average every year. Brazil has also held onto its first-place position as the world’s largest coffee producer for over 150 years.
Why is the price of coffee falling?
Coffee Prices Drop as Supply Recovers After Climate Setbacks. After facing low harvests and high prices in the spring of 2025, coffee prices are dramatically decreasing. Global Coffee Industry Projections: Growth and Opportunities The coffee industry is a rapidly growing market with a bright future ahead. According to market projections, the global coffee market size value is projected to reach $102. CAGR of 5.Moving forward, the coffee market is expected to remain highly volatile. While some forecasts suggest potential price corrections by late 2025 or 2026, the underlying structural supply constraints, particularly the projected widening Arabica deficit, indicate that significant price fluctuations will persist.Demand for coffee continues to grow globally, putting additional pressure on limited supplies: Emerging markets like China have seen coffee consumption more than double in the past decade, driven by interest in premium and specialty products.But by 2050, rising temperatures could shrink the global area suitable for growing coffee by half. And at least 60 percent of all coffee species — including arabica, the most popular bean — are at risk of going extinct in the wild due to climate change, deforestation and disease.
What is the forecast for coffee prices?
Coffee is expected to trade at 400. USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 439. Coffee prices are continuing to fall according to Intercontinental Exchange (ICE), with the price registered on 17 June 2025 the lowest recorded in almost five months.Prices have leaped nearly 21% over the past 12 months, with the average retail price of 100% ground roast coffee recently reaching a record high of $8. January, USDA data shows.The Coffee Market Is Growing Rapidly The coffee market is expected to reach US$96. Out-of-home revenue – generated in restaurants and bars – will touch US$376.Basic Info. Coffee Arabica Price is at a current level of 8. This is a change of 9.
What’s going on with the coffee market?
Coffee growers are dealing with a lot right now. Most immediately, the Trump administration’s tariffs, which threaten their sales, add to the ongoing challenges of pests and diseases for coffee production. In the longer term, experts say the coffee industry can’t continue with business as usual. For most investors, commodities like coffee work best as a small part of a diversified portfolio, rather than a primary investment strategy. But if you’re fascinated by the global coffee market, its price swings, and the economics behind it, it’s definitely a space worth watching.In 2024, world coffee prices increased 38. In Vietnam, for instance, which grows most of the world’s Robusta beans, drought caused a 20% drop in coffee production in 2023 and 2024, with exports falling by 10% for two years in a row.The Coffee Market Is Growing Rapidly The coffee market is expected to reach US$96. Out-of-home revenue – generated in restaurants and bars – will touch US$376.Some of the primary risks of investing in coffee include: Price Volatility: Coffee prices are highly volatile and can fluctuate significantly due to factors such as weather conditions, changes in global demand, geopolitical instability, and supply chain disruptions.
Is coffee a good investment now?
The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities. Coffee is a major cash crop for Uganda both in terms of foreign exchange earnings and employment creation.
Will the price of coffee go up in 2025?
Coffee prices have surged to levels not seen in years. In fact, Arabica coffee futures, which largely dictate global green coffee prices, rose over 70% in 2024, peaking above $4. Overall, climate suitability for arabica coffee is predicted to decline globally by 2050 (Faraz et al. This is especially true in some growing regions of Latin America, including Brazil (Gomes et al. Colombia (Ceballos-Sierra and Dall’Erba, 2021).