What’s the future of coffee?
What are the projections for the global coffee industry? The global coffee industry is projected to grow significantly in the coming years, driven by increasing coffee consumption in emerging markets, growing demand for specialty coffee, and the expansion of coffee retail chains globally. Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.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.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.This shortage has impacted farmers, traders, and coffee lovers worldwide. Moreover, this shortage has also raised other concerns such as coffee prices. In 2024, global coffee prices surged by 147%, with premium Arabica beans reaching USD 3. USD 5,200 per metric ton.
What are the risks of coffee futures?
Price Volatility Risk Adverse weather conditions (such as droughts, frosts, or hurricanes), labour disruptions, or political instability in producing countries can significantly impact output. These factors can cause sharp price swings in short periods, affecting both producers’ revenues and traders’ positions. Price Volatility Risk Coffee prices are susceptible to shifts in global supply and demand. Adverse weather conditions (such as droughts, frosts, or hurricanes), labour disruptions, or political instability in producing countries can significantly impact output.Due to the effects of climate change, the land suitable for coffee farming could shrink by 50% by 2050, according to a 2014 study. The analysis found that highly productive areas in the two largest coffee-producing countries in the world, Brazil and Vietnam, may become unsuitable for coffee in the future.
Why are coffee futures high?
Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts. Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.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.Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts.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.
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. 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.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.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.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.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.
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. No. Although it is heavily traded and widely consumed throughout the world, coffee is not the most traded commodity in the world.Coffee is a major cash crop for Uganda both in terms of foreign exchange earnings and employment creation.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.
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. The Food and Agriculture Organization (FAO) of the United Nations noted that global coffee prices rose 38. Vietnam, Indonesia and Brazil causing prices to rise.World coffee exports amounted to 11. August 2025, compared with 11. August 2024. Exports in the first eleven months of coffee year 2024/25 (October 2024 to August 2025) increased by 0.