Is coffee going to skyrocket?
The global coffee industry is navigating an extended period of high market prices. Over the last two years, green coffee costs have almost doubled, reaching an all-time high of US $4. February 2025. 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.Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.Coffee Futures Hit Record Highs In recent months, coffee futures prices have skyrocketed, with arabica coffee, which accounts for the majority of global production, reaching an all-time high of $3. December 2024. This shatters the previous record of $3.Coffee is expected to trade at 377. 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 413.
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. 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.Amid those supply constraints, global demand for coffee in growing. For example, consumption is up 150% over 10 years in China — the world’s most populous country, according to the U. S. Department of Agriculture. Other factors also are contributing to the pricing pressures, including politics.Major coffee-growing regions like Brazil, Colombia, and Vietnam are primarily contributing to this shortage due to many reasons like extreme weather conditions, supply chain disruptions, and labor challenges. Another reason adding to this complexity is the Red Sea shipping crisis.Brazil leads the way in coffee exports & production according to the coffee export data of Brazil, followed by Vietnam and Colombia.
What is the coffee roadmap in Uganda?
In 2017 Uganda adopted the Uganda Coffee Roadmap, a national plan to increase coffee production to 20 million bags and export earnings to USD$1. Coffee is an essential part of Uganda’s rural economy and generated over USD$1 billion in 2023/24 and is the 7th-largest exporter of coffee globally. The spike in coffee prices in 2025 is more than just a temporary blip — it’s the result of a global supply chain under pressure from weather, politics, and financial markets. For coffee lovers, that means higher prices and greater awareness of the forces behind the scenes.Coffee remains a cornerstone of consumer culture, fueling a $20 billion U. S. Despite economic headwinds, coffee chains thrive on loyal customer bases and innovative offerings, making them a compelling sector for long-term investment.Total coffee imports were forecast to total around 137 million 60-kilogram bags within the 2023/24 period, while total export numbers are expected to reach more than 141 million. In 2023, the United States was the world’s top coffee importer, followed by Germany, Canada, and the Netherlands.Coffee Prices Hit 48-Year High in 2025. What’s Going On? On January 29, 2025, many sources reported that coffee prices hit an all time high or record highs at $3. As of the final proofing of this blog on February, 19, 2025, coffee reached a daily high of $4.The global coffee market is experiencing unprecedented volatility in 2025. Arabica coffee prices have more than doubled in the past year, exceeding $4 per pound. This situation presents both challenges and opportunities for businesses and consumers.
Will coffee prices drop?
Production is predicted to increase over the next three years, easing concerns to farmers and investors and resulting in rapid price drops of Arabica and Robusta coffee beans. This could see a return of more products on the shelves and lower prices for consumers. Coffee leaf rust and the coffee borer beetle are two major threats, with coffee leaf rust alone reducing yields by up to 30% in some areas. It is estimated that climate change will reduce the area suitable for growing arabica coffee by 20% and robusta coffee by 9% by the year 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.Cost of climate change As with the cost of other global commodities, supply and demand are a large part of the equation. Getting caffeinated is likely to become an ever-costlier proposition because of rising temperatures, droughts and excessive rains striking Brazil and Vietnam, the world’s two biggest producers.By 2050, experts predict that climate change could kill off the 2 main coffee varieties we drink daily while also jeopardising 60 per cent of the planet’s 124 wild coffee plants. The news will come as a shock to Australia’s 11 million daily coffee drinkers ahead of World Coffee Day on 1 October.
Why are coffee futures rising?
Everyone wants coffee Price increases in 2023 and 2024 were largely driven by adverse weather conditions in major coffee-producing countries like Brazil, Indonesia, and Vietnam and increased shipping costs, the report noted. Brazil is the biggest coffee producer in the world,” Barrett said. Climate & Production Issues: Extreme weather events in Brazil and Vietnam – two of the world’s biggest coffee producers, have caused lower yields and uncertainty around future harvests. Rising global temperatures mean coffee farms are being forced to higher altitudes, increasing production costs.The price hike is driven by a perfect storm of factors. Coffee is traded on global stock exchanges, and speculation has inflated prices without benefiting the farmers. Meanwhile, extreme weather in top-producing countries like Brazil, Colombia, and Vietnam has led to poor harvests.President Donald Trump has threatened a 50% tariff against Brazil, a major producer of green coffee beans. That could lead to higher coffee prices. Coffee prices are expected to rise if 50% tariffs on Brazil hold. The price of coffee has already increased due to droughts in Brazil and Vietnam.The coffee market is expected to remain volatile, with prices continuing to rise due to ongoing supply and demand imbalances. Farmers are prioritizing lower-grade coffee varieties that require less labor, potentially threatening the future of specialty coffee unless premiums increase.
Why are coffee prices falling in Uganda?
According to Dr Gerald Kyalo, the commissioner in-charge of coffee development at the Ministry of Agriculture, Animal Industry and Fisheries (Maaif), the fall in coffee prices is a result of production surge from Brazil and Vietnam, which are the top two coffee-producing countries. Ugandan coffee has become increasingly known for its rich flavors and variety of popular profiles. Its Robusta coffee is some of the best in the world, and Arabica varieties from high-altitude areas are very prolific and highly prized.The Indian coffee importing countries are Italy, Germany, Russia, Belgium, and Jordan. The major coffee exporting countries are Brazil, Switzerland, Germany, the Netherlands, the United States, and Canada.In 2023, Uganda imported Coffee primarily from: Tanzania ($2. M), Rwanda ($152k), Burundi ($148k), United Arab Emirates ($83. Lebanon ($19k). The fastest growing origins for Coffee imports in Uganda between 2022 and 2023 were: Tanzania ($1. M), Portugal ($2. Rwanda ($2.Uganda exported Coffee, not roasted or decaffeinated to Italy ($115,521. K , 73,306,400 Kg), Germany ($64,092. K , 41,437,300 Kg), Sudan ($59,221. K , 38,325,700 Kg), United States ($30,672. K , 18,008,300 Kg), India ($24,804. K , 17,486,600 Kg).
How much will coffee go up in 2025?
On January 29, 2025, many sources reported that coffee prices hit an all time high or record highs at $3. As of the final proofing of this blog on February, 19, 2025, coffee reached a daily high of $4. There was even a day where the price soared up to $4. Coffee prices are to set to surge as global supply struggles under climate impacts, shipping issues and rising demand from Asia. Learn how it’s set to affect your daily caffeine hit, and what the coffee industry can do to adapt.Trading Economics meanwhile, projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026.And that remainder wasn’t small, with the average price of a cup of coffee increasing by 17% since 2022 (Lumina Intelligence). However, there are signs that coffee prices are beginning to stabilise, as they level out and begin to decline.The spike in coffee prices in 2025 is more than just a temporary blip — it’s the result of a global supply chain under pressure from weather, politics, and financial markets. For coffee lovers, that means higher prices and greater awareness of the forces behind the scenes.For instance, Starbucks locks in its coffee prices through futures contracts 12-18 months in advance, according to company filings. Traditionally, coffee companies invest in the futures market to lock in prices for coffee they will purchase in the future, mitigating the risk of sudden price increases.