Are coffee prices going up in 2025 in the USA?
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. Still, demand isn’t likely to go anywhere but up in the US, where Americans drink more coffee each day than bottled water. Instead, coffee drinkers may want to prepare for a future where prices ratchet up even further thanks to a combination of tariffs, rising global consumption, and climate change.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.By 2028, the outside coffee market is projected to grow at an impressive CAGR of 15-20% to become US$ 2. Bn, reflecting a transformation in consumer behavior and significant opportunities for growth.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.Speculation, Shortages, and Supply Chain Shocks 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.
What is the coffee market forecast?
In the Coffee market, volume, at home is expected to amount to 6. Volume, out-of-home is expected to amount to 1. Volume, combined is expected to amount to 7. The Coffee market is expected to show a volume growth, at home of 1. 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.Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.As mentioned above, the U. S. Starbucks remains the industry leader with $27. Dunkin’ at $11.And that was before President Donald Trump’s tariffs entered the picture and further rattled the coffee industry. Due to a trifecta of climate factors, geopolitical turmoil, and tariff uncertainty, coffee producers are paying more and passing on these costs to consumers.
What is the latest trend in coffee?
Cold Coffee Branches Out “We’re now in the fourth wave of coffee, which is being defined by a cold coffee frenzy. Cold coffee’s growth is largely being driven by younger consumers, primarily Gen Z,” says Kathryn O’Connor, chief marketing officer at La Colombe. Cold Brew Innovations Are Heating Up Cold brew isn’t going anywhere, but in 2025, it’s evolving in exciting ways. Coffee lovers can expect an influx of unique flavors, more convenient ready-to-drink options, and functional cold brews packed with health-boosting ingredients.
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. In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.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.Global coffee prices have surged by 147% this year (2024), with premium arabica beans reaching USD 3. CHF 2. USD 5,200 per metric ton (CHF 4,630), prices unseen since 1977.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.
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. 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.You may already be aware but as we enter 2025, spot green coffee prices have surged to unprecedented levels. Several factors, including climate change, supply chain disruptions, and rising global demand, are driving this significant price increase.The good news is that it doesn’t seem like a global coffee shortage is imminent. The bad news is that it might not be as far off as we’d like. According to a study by The Climate Institute in Australia, the world could run out of coffee by 2080 due to climate change.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.