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. 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.Fundamentally, coffee prices have been increasing due to a combination of reduced supplies from weather problems in major producing countries like Brazil and Vietnam, tariffs on coffee imports, and better global demand.Coffee prices are expected to remain volatile but broadly trend upward through the remainder of 2025.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.
What will happen to coffee in the future?
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. For one, Hawaii is the only state in the United States that grows coffee. This makes it possible to explore Hawaii’s coffee along every part of its journey — from bean to cup. In today’s import/export market, this is a rare treat. In many countries, people don’t drink the coffee they grow.Why Doesn’t Coffee Grow In America? Since these conditions all need to be present to make the rich beans we all want in our coffee, it is no surprise that only 2 out of our 50 states can grow coffee — California and Hawaii. Simply put, we do not have the climate to support growing coffee.The Coffee Belt is divided into three main growing regions: Latin America, Africa and Asia/Pacific. Starbucks® ethically sources, roasts and blends coffees from each of these three regions to bring you unique coffees. Just like tea or wine, coffee gets much of its flavour from where it comes from.For one, Hawaii is the only state in the United States that grows coffee. This makes it possible to explore Hawaii’s coffee along every part of its journey — from bean to cup. In today’s import/export market, this is a rare treat.
Will coffee prices go up in 2025?
In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S. Coffee is making headlines for the wrong reasons lately, with prices reaching all-time highs! Climate change, changing farming practices, and limited supplies are shaking up one of the world’s favorite brews.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.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%.The cost of a regular cup bought in cafes and restaurants has risen about 8%, from $3. February 2024 — just before the recent ramp-up in wholesale prices — according to data from Toast, which tracks sales across tens of thousands of coffee shops and restaurants nationwide.
Will coffee prices increase in 2026?
Global Coffee Price Projections World Bank (Commodity Markets Outlook) Beverages index projected to rise ~20% in 2025 driven by coffee and cocoa shortfalls, then decline ~11% in 2026 as production rebounds . Specifically: Arabica: +50% in 2025, then –15% in 2026. Robusta: +25% in 2025, then –9% in 2026 . 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.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.
Why are coffee prices so high in the USA?
Heat, drought and other poor weather conditions have hurt coffee production globally in recent years, causing prices to surge. World coffee prices rose nearly 40% in 2024, according to the Food and Agriculture Organization of the United Nations. According to Towards FnB, the U. S. USD 112. USD 167. CAGR from 2025 to 2034.
Will coffee be gone by 2050?
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. Arabica coffee prices decline today maintaining high volatility since early October. The market remains supported by tight global supply — coffee inventories keep falling, while rainfall in Brazil’s key arabica region (Minas Gerais) remains below average.