Is coffee going up in price?
Prices have leaped nearly 21% over the past 12 months, with the average retail price of 100% ground roast coffee recently reaching a record high of $8. January, USDA data shows. Coffee is expected to trade at 400. 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 439.Severe droughts and erratic rainfall in Brazil and Vietnam have triggered a supply crunch, while weather unpredictability has destabilised entire supply chains, both of which continue to pressure the coffee sector in 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.Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts.
Will the price of coffee go up in 2025?
Coffee prices have surged to levels not seen in years. In fact, Arabica coffee futures, which largely dictate global green coffee prices, rose over 70% in 2024, peaking above $4. Moving forward, the coffee market is expected to remain highly volatile. While some forecasts suggest potential price corrections by late 2025 or 2026, the underlying structural supply constraints, particularly the projected widening Arabica deficit, indicate that significant price fluctuations will persist.Coffee price change in imported coffee beans In Vietnam, for instance, which grows most of the world’s Robusta beans, drought caused a 20% drop in coffee production in 2023 and 2024, with exports falling by 10% for two years in a row.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.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.Price Volatility Risk Coffee prices are susceptible to shifts in global supply and demand. Adverse weather conditions (such as droughts, frosts, or hurricanes), labour disruptions, or political instability in producing countries can significantly impact output.
Will coffee prices fall?
Coffee prices are continuing to fall according to intercontinental exchange (ice), with the price registered on 17 june 2025 the lowest recorded in almost five months. The forces behind rising coffee prices coffee prices have surged to levels not seen in years. In fact, arabica coffee futures, which largely dictate global green coffee prices, rose over 70% in 2024, peaking above $4.Coffee Prices Drop as Supply Recovers After Climate Setbacks. After facing low harvests and high prices in the spring of 2025, coffee prices are dramatically decreasing.The Food and Agriculture Organization (FAO) of the United Nations noted that global coffee prices rose 38. Vietnam, Indonesia and Brazil causing prices to rise.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.
What is the prediction of coffee market?
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. 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.Tariffs & Labor: The Roaster’s Reality For small- to mid-sized coffee roasters like us, the struggle goes beyond bean costs. In May 2025, the U. S. Brazil, Mexico, and Vietnam.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.
Is coffee a good investment now?
Supply chain issues have coffee price increasing significantly. If this is temporary, it may present buying opportunities after The impact is felt by the chains. If it is permanent, it’s likely to impact earnings for a long time and thus I would stay away from them for now. 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.Futures contracts provide exposure to coffee price volatility and can be profitable if an investor correctly predicts price changes. However, they also carry a significant amount of risk because of the potential for large fluctuations in price due to factors like weather events or shifts in global demand.