Is coffee a good investment now?
Overall, while there are risks involved, the ongoing demand and market growth provide a compelling case for coffee as a worthwhile addition to investment portfolios in 2025. The Coffee Market Is Growing Rapidly The global coffee market is experiencing significant growth, driven by several key factors. The coffee market is expected to reach US$96.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.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.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’s the future of the coffee market?
Global Coffee Industry Projections: Growth and Opportunities According to market projections, the global coffee market size value is projected to reach $102. CAGR of 5. Coffee is in trouble. Even before the United States imposed tariffs of 50 percent on Brazil and 20 percent on Vietnam—which together produce more than half of the world’s coffee beans—other challenges, including climate-change-related fires, flooding, and droughts, had already forced up coffee prices globally.On average, Brazil produces 2. For more than 150 years, Brazil has also maintained its top spot as the world’s greatest producer of coffee and a top coffee exporter, as per the Brazil coffee export data.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.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.Brazil. Quoted from International Coffee Organization’s (ICO), Brazil is the undisputed leader in coffee export by country, accounting for nearly 30% of the world’s coffee supply. Known for its vast coffee plantations, Brazil produces both Arabica and Robusta beans.
Is the coffee price going up?
Coffee has become markedly more expensive over the past year as poor harvests and higher import duties have helped push the cost of retail coffee 41% higher since September 2024 alone. 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. Coffee is an important plantation crop in India and has high export potential. The Western Ghats in India is the major hub of coffee cultivation.The global specialty coffee market size was estimated at USD 101. USD 183. CAGR of 10.India is now the seventh-largest coffee producer globally with exports reaching $1. FY 2023-24, almost double the $719. India’s coffee exports have grown significantly due to the increasing global demand for its rich and unique flavors.
Why are coffee futures high?
A worker packs coffee cherries during a harvest in Jacutinga, Minas Gerais state, Brazil. Coffee futures rose to a fresh record in New York as US tariffs and crop concerns keep supplies constrained, risking further price hikes at cafes and supermarkets. Coffee Inflation That report showed that packaged whole bean/ground and instant coffee cost consumers nearly 21% more in August 2025 compared to a year earlier.Coffee has become markedly more expensive over the past year as poor harvests and higher import duties have helped push the cost of retail coffee 41% higher since September 2024 alone.
What is the C market for coffee?
The C Market is a global commodity exchange similar to the stock market, where both the physical trading of green coffee and the trading of coffee futures contracts take place. Not all coffees are traded at C Market. In order for coffee to be traded, it must meet certain standards. The C Market price represents the base price at which coffee is traded globally per pound. For example, if the C Market price is $3. So while the C Market sets the foundation, it’s rarely the price that roasters actually pay.
What is the outlook for robusta coffee?
Robusta prices dropped more than 4. Monday 21 July to reach its lowest mark (US$3489 per tonne) since June 2024. The continuing fall of Robusta prices is likely largely due to a projected four-year high in harvest figures for the world’s largest producer of Robusta coffee, Vietnam, in 2025/26. Brazil is unquestionably the king of coffee producing countries. It is the world’s largest producer and exporter of Arabica variety coffee, with an ideal climate and a vast territory. The Brazilian regions of Minas Gerais and São Paulo are famous for their high-quality coffee plantations.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.Brazil accounts for approximately 30% of global coffee exports. Country that produces the most Robusta coffee is Vietnam.However, in terms of robusta production, Vietnam is the leading producer of robusta coffee globally. Over 90% of the coffee grown and produced in Vietnam is of the robusta variety.Fairtrade coffee is primarily produced in three key countries—Indonesia, India, and Vietnam—which are also significant contributors to global coffee exports while emerging players such as Papua New Guinea, Thailand, Laos, Timor Leste, and Myanmar are also gaining recognition in the specialty coffee market.