Is London’s coffee market growing?
The London coffee market is experiencing a significant boom, reflecting a broader global trend towards increased coffee consumption. The market size is estimated to be worth approximately £1. CAGR) of 5. Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.The coffee market of 2025 sits at a critical point. Coffee stocks have dropped, but global consumption continues to rise, especially for specialty coffees. Supply chains face serious pressure from labor shortages, logistics problems, and climate change impacts on growing regions.The future of Robusta coffee Robusta prices and demand will most likely continue to remain high as producing countries and importing roasters alike look to mitigate costs and climate change with Arabica alternatives.Coffee is expected to trade at 422. 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 461.Rising temperatures, erratic rainfall, and plant diseases like coffee leaf rust threaten yields, farmer livelihoods, and the future of coffee production. Studies predict that by 2050, the amount of land suitable for coffee cultivation could shrink by 48% to 97% in key regions.
Will coffee prices go up in 2026?
However, Starbucks is a holdout for now. The company said on its July earnings call that because of its buying practices, “coffee tariff impacts lag the market with year over year coffee cost increases expected to peak in the 2026,” executives said. 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.The industry’s worth $100 billion and yet 90% of coffee farmers in Ethiopia live on less than $2 a day. That is partly because most exporters process the beans elsewhere, but also down to price fluctuations and other factors that make coffee growing a precarious business.India is now the seventh-largest coffee producer globally with exports reaching $1. FY 2023-24, almost double the $719. India’s coffee exports have grown significantly due to the increasing global demand for its rich and unique flavors.A combination of rising global consumption and weather events have pushed coffee prices up. Tariffs could hit next. How many price hikes are Americans willing to stomach for their morning coffee?coffee future prices (kc1:com) continue to surge in 2025, with both arabica and robusta reaching multi-year highs.
Is there a shortage of coffee in 2025?
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 Perfect Storm: Demand and Climate Simultaneously, climate change has reduced arabica yields worldwide, forcing companies to turn to robusta to meet their supply needs. As robusta thrives in hotter, more humid climates, it’s become an essential player in ensuring coffee’s future amid environmental challenges.Factors Contributing To Global Coffee Shortage The global coffee shortage is a result of several interwoven factors. For instance, growing coffee is sensitive to climatic conditions. High temperatures, varied rainfalls, and extreme conditions like drought have significantly impacted coffee-producing regions.
What’s the future of the coffee market?
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. Vietnam is the second largest producer of coffee in the world after Brazil. However, in terms of robusta production, Vietnam is the leading producer of robusta coffee globally. Over 90% of the coffee grown and produced in Vietnam is of the robusta variety.However, in terms of robusta production, Vietnam is the leading producer of robusta coffee globally. Over 90% of the coffee grown and produced in Vietnam is of the robusta variety.Brazil is the leader in Arabica production, while Vietnam is the leader in Robusta.Brazil. Situated in South America, Brazil is the top producer of coffee. They produce 2,68 million metric tons of coffee on average every year.
Why is coffee more expensive in 2025?
So, why is coffee so expensive? It’s not just about supply and demand. Climate change is making coffee cultivation increasingly difficult, while new EU regulations will soon require proof that beans are not linked to deforestation—adding more pressure on producers. Key statistics and facts include a 25% increase in Arabica coffee prices since the start of 2025, Brazil and Vietnam accounting for 56% of global coffee supply, and a projected 12. Brazil’s Arabica production.So how will climate change impact coffee? A recent study published on PLOS One predicts an overall decline in the world’s suitable growing land for arabica coffee by 2050.The World Bank forecasts Arabica prices to rise more than 50 percent year-on-year in 2025, before falling 15 percent in 2026, as output in Colombia — the world’s second-largest Arabica producer — recovers. Robusta is expected to gain nearly 25 percent this year, with a 9 percent correction anticipated next year.
Is the price of coffee beans going up?
Coffee prices jump 4% monthly amid global supply crisis global coffee prices are currently near a 50-year high, reached in february, while arabica “c price” exceeded $4 per pound for the first time ever in february 2025. Our coffee is grown by small coffee farmers in some of the most renowned growing regions in the world like colombia and guatemala. The process of cultivating coffee in the rugged terrain of our producing countries is often an artisanal process. This is truly a labour of love and coffee grown with care.The United States drinks more coffee than any single country in the world. But very little of that coffee comes from beans grown in the US — aside from a small fraction grown in Hawaii, all of America’s coffee comes imported from countries including Colombia, Brazil, and Switzerland.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. Our buyers, based in Lausanne, Switzerland, scour the globe for the finest coffees, including our premium, single-origin Reserve selections.Colombia is renowned worldwide for its high-quality Arabica coffee, often considered the gold standard in the industry. The country’s diverse climate and varied high-altitude regions create the perfect conditions for cultivating coffee beans with distinct, rich flavors.