Is there a coffee shortage?
This shortage has impacted farmers, traders, and coffee lovers worldwide. Moreover, this shortage has also raised other concerns such as coffee prices. In 2024, global coffee prices surged by 147%, with premium Arabica beans reaching USD 3. USD 5,200 per metric ton. 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.Total coffee imports were forecast to total around 137 million 60-kilogram bags within the 2023/24 period, while total export numbers are expected to reach more than 141 million. In 2023, the United States was the world’s top coffee importer, followed by Germany, Canada, and the Netherlands.Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.The global coffee industry is navigating an extended period of high market prices. Over the last two years, green coffee costs have almost doubled, reaching an all-time high of US $4. February 2025.
What’s the future of coffee?
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. Climate change is the real culprit behind this issue, and it is hitting major coffee-producing nations hard. Brazil, the world’s coffee giant, is responsible for 40% of the global supply.Major coffee-growing regions like Brazil, Colombia, and Vietnam are primarily contributing to this shortage due to many reasons like extreme weather conditions, supply chain disruptions, and labor challenges. Another reason adding to this complexity is the Red Sea shipping crisis.And the results are alarming: the Intergovernmental Panel on Climate Change (IPCC) predicts a significant drop in coffee yields and a shrinking of suitable coffee-growing land by 2050 1. In fact, nearly half of the land currently used to grow coffee could be unusable by 2050 due to these changes 2.The decline in suitable land for growing major coffee beans due to climate change is causing a significant threat to the industry’s supply. The population of coffee growers is also feared to decrease, and without change, the industry could face severe supply shortages by 2050.
Should I stockpile coffee?
Ideally, in order to ensure the freshest cup of coffee possible, do not store more than one week’s worth of beans at a time. This isn’t always practical, so if you know you will have beans for longer than that, you can store them in your freezer. Try to buy smaller batches more frequently—enough for one or two weeks. Take it out of the retail packaging. Your coffee often comes in packaging that is not ideally designed for long-term storage. Using an airtight container for coffee storage will help it stay fresher, longer – especially pre-ground coffee.Storing your coffee beans in a well-designed coffee canister can extend their freshness and ensure the last cup tastes just as good as the first, even weeks later. Our hands-down favorite is the Fellow Atmos Vacuum Coffee Canister. The OXO POP Coffee Container is a decent budget option.How Long Is Coffee Good in the Fridge? If you place coffee with milk or creamer, it will stay fresh for only 2 days. However, if you brew black coffee, it will last 4 days in the fridge. The exception is a cold brew concentrate that stays fresh for up to 10 days in the fridge.If your coffee beans come in a sealed package or container and remain unopened, they can safely be used for up to one year. As long as the beans aren’t opened and exposed to oxygen, they will retain the molecular compounds that give coffee its mighty fine flavours.
Why is coffee disappearing?
As traditional coffee-growing regions disappear due to climate change, farmers are relocating to higher altitudes. However, this shift is not a simple move—it often involves large-scale destruction of forest ecosystems. 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.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. Price hikes would be especially noticeable in grocery stores.Like many other high-value commodities, including sugar, cocoa and olive oil, climate change has disrupted coffee production. Brazil, by far the largest coffee producer in the world, has suffered from prolonged drought conditions, which have threatened crops.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.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.
Can coffee save life?
Drinking coffee can be healthy. For example, studies find that coffee drinkers have a lower risk of death from any cause compared to people who don’t drink coffee. Coffee is beneficial for health in general and particularly for patients with liver disease. Consumption of coffee ≥2 cups/day protects against progression of almost all forms of liver disease. Usual mechanisms involved are prevention of fibrosis, carcinogenesis, and antioxidant effect.Although there are several health benefits to consuming caffeine, living caffeine-free may also have benefits. These may include preventing headaches, having fewer digestive issues, and reducing anxiety, among others. If you’re unsure whether caffeine is a compound you should avoid, speak with a doctor.In addition to benefits like better sleep and less agitation, giving up coffee has some pros you might not expect. There are benefits like whiter teeth, fewer trips to the bathroom, and even decreases in blood pressure,” Saperstein says.
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. U. S. Coffee Brands. As mentioned above, the U. S. Starbucks remains the industry leader with $27. Dunkin’ at $11. In total, there are 29 national players — a mixture of big-name national coffee chains and smaller regional businesses.With shifting consumer habits, rising costs and inflation impacting coffee workers everywhere, many small businesses, including coffee shops, have seen revenue throttled and profits dwindle. Starbucks, a bellwether company for many independent coffee shops, reports same-store sales decreased between 2 to 4% in 2024.Opening a small coffee shop can cost around $80,000-$400,000, depending on location, format, equipment, licenses, inventory, and initial marketing.To put it simply, to work out whether your business is in profit, you take away your total expenses from your gross sales amount. The profit margin for a coffee shop is anywhere between 1% and 25%, although the average for most independent, small coffee shops is around 15%.In 2019, an independent survey of coffee shop owners in the USA, UK and Canada reported that 50 – 64% of independent coffee shops fail within their first five years. In contrast, in the previous decade, most major markets saw a growth in the number of coffee shops opening and surviving past this five-year mark.
Why are coffee stocks going up?
Rising demand meets supply chain challenges: Coffee consumption is growing worldwide, but higher fuel costs, labor shortages, and disrupted shipping are making coffee more expensive to deliver. Starbucks – 16,466 locations: The largest coffee chain in the U. S. Starbucks is known for its specialty drinks, premium branding, and extensive nationwide presence.