What is the forecast for coffee commodity?
Coffee is expected to trade at 306. 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 335. Coffee is one of the most widely consumed beverages worldwide and ranks among the most traded commodities globally. It sustains the livelihoods of some 25 million farmers and creates additional employment throughout the coffee value chain.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.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.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.This situation presents both challenges and opportunities for businesses and consumers. Key statistics and facts include a 25% increase in Arabica coffee prices since the start of 2025, Brazil and Vietnam accounting for 56% of global coffee supply, and a projected 12. Brazil’s Arabica production.
What is the future of coffee?
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.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.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.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.Production uncertainty The nation experienced a significant 20% decrease in yield due to drought conditions in the 2023/24 crop year. This reduction exemplifies the broader trends of climate-driven production uncertainties that the global coffee industry must counteract.
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. 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 294. 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 322.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.The Coffee C Futures contract, traded on the Intercontinental Exchange (ICE), is the global benchmark for Arabica coffee prices. It represents the expected price of coffee for future delivery, allowing buyers and sellers to hedge against market fluctuations.
What is the all time high for coffee futures?
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. Global coffee prices hit a record high earlier this year, amid supply issues and resilient demand. Even with a large harvest expected next season in Brazil, the world’s largest producer and exporter, that may not bring immediate relief for coffee consumers.Over the past month, Coffee’s price has risen 5. CFD) that tracks the benchmark market for this commodity. Historically, Coffee reached an all time high of 440. February of 2025.It said this was due to improved production forecasts and diminishing demand. Global coffee demand is expected to drop 0. A surplus of 1.Spotlight on the Global Coffee Shortage Today, global coffee shortages are becoming a pressing concern. This shortage has impacted farmers, traders, and coffee lovers worldwide. Moreover, this shortage has also raised other concerns such as coffee 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 coffee going to be in short supply?
The global coffee shortage has driven U. S. November, according to data from Intercontinental Exchange. Arabica coffee production in Brazil is set to decline this year by 12. Brazilian ministry of agriculture. 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.Karnataka. Karnataka is the undisputed leader in coffee production in India, accounting for approximately 70% of the country’s total coffee output. In 2022, the state contributed over 55% to the national output by harvesting around 3. Arabica.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.Brazil is the largest coffee producer in the world, accounting for over 39% of global coffee production. The country is known for its high-quality Arabica beans, which are grown in the states of Minas Gerais, Sao Paulo, and Parana. On average, Brazil produces 2.
Why are coffee stocks rising?
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. Trading Economics meanwhile, projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026.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.Speculation, Shortages, and Supply Chain Shocks Meanwhile, extreme weather in top-producing countries like Brazil, Colombia, and Vietnam has led to poor harvests. Add to that disrupted supply chains, political instability, and a shortage of shipping containers, and the result is a volatile market.The Coffee C Futures contract, traded on the Intercontinental Exchange (ICE), is the global benchmark for Arabica coffee prices. It represents the expected price of coffee for future delivery, allowing buyers and sellers to hedge against market fluctuations.Lavazza said the price volatility was driven by a “perfect storm” of droughts in Brazil and Vietnam significantly impacting coffee production and ongoing geopolitical disruption increasing transportation costs and delivery times.