Are coffee beans a good investment?
Is Coffee a good investment? Investing in coffee can be a good option for those looking for a stable commodity to diversify their portfolio. The coffee market is one of the most active commodity markets in the world, with an estimated 2. 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.india coffee market was valued at usd 478 million in 2022 and is expected to reach usd 1,227. Million by 2032 at a cagr of 9. Coffee is an important plantation crop in india and has high export potential. The western ghats in india is the major hub of coffee cultivation.Coffee has become markedly more expensive over the past year as poor harvests and higher import duties have helped push the cost of retail coffee 41% higher since September 2024 alone.Coffee is expected to trade at 401. 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 445.
Is coffee a good investment now?
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. 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.Sugar And Coffee Prices Fall On Oversupply And Policy Shifts. Global sugar and coffee markets dipped as robust production meets shifting demand and changing US trade policies ripple through key exporters.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.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.
Will coffee prices fall?
After facing low harvests and high prices in the spring of 2025, coffee prices are dramatically decreasing. As a result, ripples are being seen throughout the global supply chain following a period of unpredictable crop yields and unstable consumer prices. Arabica coffee futures are falling for the third straight session (COFFEE: -2. The correction in coffee prices is mainly driven by the latest forecasts of rainfall in Brazil, which have eased concerns about a prolonged drought and potential supply constraints.Our coffee, our why Starbucks proudly sources 100% arabica coffee from more than 450,000 farmers in 30 markets along “The Coffee Belt” – in Latin America, Asia Pacific and Africa.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.On the Arabian Peninsula, right by the Red Sea, lies a country that produces some of the best coffee worldwide. Yemen coffee, which boasts a centuries-old tradition, has flourished despite adversity. More than anything, exceptional quality defines Yemeni Arabica coffee beans.
Is coffee a good commodity?
Coffee is a major export commodity and was the top agricultural export for 12 countries in 2004; the world’s seventh-largest legal agricultural export, by value, in 2005; and the second most valuable commodity exported by developing countries, from 1970 to circa 2000, which is frequently misstated — see coffee . In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.The USDA forecast global coffee production for the coming October 2025 to September 2026 coffee year to reach 178. This, due primarily to an anticipated increase in overall robusta production.Coffee Inflation That report showed that packaged whole bean/ground and instant coffee cost consumers nearly 21% more in August 2025 compared to a year earlier.Coffee is in trouble. Even before the United States imposed tariffs of 50 percent on Brazil and 20 percent on Vietnam—which together produce more than half of the world’s coffee beans—other challenges, including climate-change-related fires, flooding, and droughts, had already forced up coffee prices globally.
Will coffee prices go up in 2026?
Price Forecasts and Market Outlook Looking further ahead, the bank expects prices to normalise to $2. Trading Economics projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026. 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.