Is coffee good for you in 2025?
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). Global Warming’s Impact on Coffee-Growing Regions Even minor temperature fluctuations can significantly impact coffee production. Experts estimate that by 2050, up to 50% of the land currently suitable for coffee could become unsuitable, putting 47% of the world’s coffee production at risk.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.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.The US is the world’s largest coffee consumer, importing 26. It’s no wonder, seeing as Americans love coffee! One in three Americans drink coffee every day, and most drink an average of 2-3 cups.
Why are coffee futures going up?
Analysts predict that coffee prices will remain elevated through 2025 due to ongoing supply constraints and strong global demand. Citigroup and ING have raised their price forecasts, anticipating that prices will normalize only if production improves in key regions. The global coffee market size accounted for USD 256. USD 381. CAGR of 4. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.Trump’s 10% baseline tariffs on nearly all imported goods includes coffee beans. And coffee prices were up 9. April, according to the Consumer Price Index, which reports May prices on Wednesday. The extra duties lowered Smucker’s profits and will lead to further price increases, the company said Tuesday.The USDA’s Foreign Agriculture Service (FAS) projected that world coffee production in 2025/26 will increase +2.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 is expected to trade at 297. 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 324.
Why is coffee so expensive in Canada in 2025?
Canadian Currency Exchange Challenges Throughout 2024, the Canadian dollar depreciated, and forecasts suggest this trend may continue or intensify in 2025. Since coffee is globally traded in U. S. Canadian dollar means higher costs for importing coffee into Canada. Coffee prices are on the rise after President Donald Trump announced a sweeping 50% tariff on imports from Brazil, the world’s largest coffee producer, sending a shock through global commodities markets and setting off fresh volatility in futures trading.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.According to the most recent studies, roughly 75 percent of Americans consume coffee every day. Your target market may be college students and professionals who are commuting to work or attending class and are looking for a cheap cup of coffee to satisfy their caffeine cravings.Coffee Prices Hit 48-Year High in 2025. What’s Going On? 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.
What is the coffee market expectations?
The United States coffee market value is expected to grow from USD 23. USD 28. CAGR of 3. 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).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.Coffee trading basics Coffee is one of the most highly-traded commodities in the world – the market is worth more than $100 billion annually.Revenue, at home (e. Coffee market amounts to US$105. Revenue, out-of-home (e. US$380.
Are arabica coffee prices forecasted to fall around 30 by end 2025?
LONDON, Feb 13 (Reuters) – Arabica coffee futures are expected to fall by around 30% by the end of 2025, with recent record high prices expected to curb demand and early signs pointing to a bumper Brazilian crop next year, a Reuters poll showed on Thursday. Coffee is primarily traded on the Intercontinental Exchange (ICE), with Arabica and Robusta coffee beans being traded on this exchange. Arabica coffee futures are also traded on the New York Mercantile Exchange (NYMEX).The C Market is a global commodity exchange—similar to a stock exchange—where both the physical trade of green Arabica coffee and the trade of coffee futures contracts occur. Not all coffees are traded on the C Market. To be traded, coffee must meet certain standards.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.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 future of the coffee industry?
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. While the cost of coffee beans has been a significant driver of price increases, other ingredients, such as milk and sugar have also seen price hikes. The cost of milk increased 3. May 2024 and May 2025, while sugar and sugar alternatives are up 3.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.An earlier report by the Climate Institute found that coffee production could be cut in half by 2050 due to climate change. Warming temperatures have started to introduce several new threats to the production of coffee, ranging from unsuitable growing temperatures to new warmer weather pests.Coffee market is expected to reach US$ 186. US$ 121. CAGR of 4. The industry is expanding generally due to factors like shifting lifestyles, developing coffee culture among consumers worldwide, and rising disposable incomes.
Is it smart to invest in coffee?
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. Global demand for specialty coffee is rising, especially in Asia. Traditional coffee markets like Australia, the U. S. Europe keep growing. A weaker Aussie dollar makes imported coffee beans more expensive. Market speculation and hedge funds are driving price volatility.However, as with any investment, there are risks involved, including fluctuations in supply and demand, currency exchange rates, and weather conditions that can affect crop production. It is essential to research and understand the market before investing in 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.One of the most significant threats to coffee is climate change. Rising temperatures, unpredictable rainfall patterns, and prolonged droughts are making it increasingly difficult to grow coffee in traditional regions. Arabica coffee, which accounts for about 60% of global production, is particularly vulnerable.