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.Sustained high green coffee prices have been a defining factor of the coffee industry in 2025. In early February, arabica futures surged to their highest-ever levels, reaching US$4. September.Our coffee, our why Starbucks proudly sources 100% arabica coffee from more than 450,000 farmers in 30 markets along “The Coffee Belt” – in Latin America, Asia Pacific and Africa.
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. 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.In conclusion, the Coffee market in Worldwide is experiencing growth and development due to changing customer preferences, including a shift towards premium and specialty coffee, the increasing demand for sustainable and ethically sourced coffee, and the convenience of ready-to-drink coffee products.After facing low harvests and high prices in the spring of 2025, coffee prices are dramatically decreasing. As a result, ripples are being seen throughout the global supply chain following a period of unpredictable crop yields and unstable consumer prices.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.
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. 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.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.The morning cuppa is going to be cheaper and more affordable thanks to the Union Government’s decision to reduce the GST on instant coffee from 18% to 5%.
Will coffee prices go up in 2025 in the USA?
Coffee prices are expected to remain volatile but broadly trend upward through the remainder of 2025. The Coffee Market Is Growing Rapidly Out-of-home revenue – generated in restaurants and bars – will touch US$376. Combined revenue in 2025 is expected to hit US$473. The revenue, at home is expected to grow annually by 2. CAGR 2025-2029).Coffee is expected to trade at 401. 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 445.The coffee market is one of the most active commodity markets in the world, with an estimated 2. The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities.