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. 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.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.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.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.Investing in coffee can be a good option for those looking for a stable commodity to diversify their portfolio.
Can you invest in coffee futures?
Investors can invest or trade Coffee through Futures, Exchange Traded Funds, CFDs and Spread betting platforms. Some of these products are leveraged products. Make sure you understand how leverage works before you dive in. A combination of rising global consumption and weather events have pushed coffee prices up. Tariffs could hit next.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.The Global Coffee Trade Is in Crisis — and You’re Paying for It. Coffee prices have surged so high that even retailers are refusing to buy.For most investors, commodities like coffee work best as a small part of a diversified portfolio, rather than a primary investment strategy. But if you’re fascinated by the global coffee market, its price swings, and the economics behind it, it’s definitely a space worth watching.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.
Is coffee a growing market?
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$376. In 2025, Coffee Excellence Is All About the Human Touch In order to offer value beyond caffeine delivery, cafes are increasingly focusing their energy on service and hospitality experiences as the main differentiators that retain customers and grow their businesses.The spike in coffee prices in 2025 is more than just a temporary blip — it’s the result of a global supply chain under pressure from weather, politics, and financial markets. For coffee lovers, that means higher prices and greater awareness of the forces behind the scenes.What are the main challenges in building a sustainable coffee supply chain? Key challenges include environmental issues like deforestation and climate change, economic challenges such as fair pricing for farmers, and social concerns like labor rights and gender inequality.By 2050, experts predict that climate change could kill off the 2 main coffee varieties we drink daily while also jeopardising 60 per cent of the planet’s 124 wild coffee plants.This commodity chain begins with the cultivation of the beans on coffee plantations in producing countries and ends with the purchase of roasted coffee by the final customer, in the countries where it is consumed.
What is the price of coffee in 2025?
In 2025, the approximate wholesale price range for Kenya coffee is between US$ 2. US$ 5. US$ 1. US$ 2. Over the past month, Coffee’s price has fallen 3. CFD) that tracks the benchmark market for this commodity. Historically, Coffee reached an all time high of 440. February of 2025.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.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 expected to rise if 50% tariffs on Brazil hold. The price of coffee has already increased due to droughts in Brazil and Vietnam. Price hikes would be especially noticeable in grocery stores.
What is the coffee market in 2030?
Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5. The coffee industry is a rapidly growing market with a bright future ahead. According to market projections, the global coffee market size value is projected to reach $102. CAGR of 5.Brazil leads the way in coffee exports & production according to the coffee export data of Brazil, followed by Vietnam and Colombia. The global demand for specialty coffee is on the rise, with countries like Ethiopia and Guatemala gaining popularity and production rates, as per the USDA.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.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.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.
Who trades coffee futures?
Coffee futures have traded in New York since 1882, first on the New York Cocoa Exchange (later part of the Coffee, Cocoa and Sugar Exchange), then on the NYBOT and now on ICE and NYMEX. The futures are traded in cents per pound. One contract of coffee controls 37,500 pounds of coffee. For example, a coffee company depends on a regular, predictable supply of coffee beans. To protect itself against a possible increase in coffee bean prices, the company could enter into a futures contract that would allow it to buy beans at a specific price on a particular date. That contract is a hedge.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.When a producer wants to protect themselves from a fall in prices, they will choose to make a short sale of N contracts, in this way, if the price of coffee falls, the producer will compensate the loss of value of their product in the spot market with the profit generated in the futures market.Buyers, such as coffee roasters or distributors, enter into contracts to purchase coffee beans at a future date and predetermined price. Sellers, typically coffee producers or exporters, enter into contracts to sell their coffee beans at a specified quantity and price.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.
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. 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.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.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.Sophia Antipolis, 8 January 2025: People who drink coffee in the morning have a lower risk of dying from cardiovascular disease and a lower overall mortality risk compared to all-day coffee drinkers, according to research published in the European Heart Journal [1] today (Wednesday).