What is happening with the coffee market?
Coffee consumption continues to climb despite price increases, with global demand projected to grow. This growth stems from several key factors reshaping the coffee landscape. First, younger consumers are entering the market earlier than previous generations. The coffee market is one of the most active commodity markets in the world, with an estimated 2. The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities.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.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. Further increases the cost for businesses.Climate & Production Issues: Extreme weather events in Brazil and Vietnam – two of the world’s biggest coffee producers, have caused lower yields and uncertainty around future harvests. Rising global temperatures mean coffee farms are being forced to higher altitudes, increasing production costs.President Donald Trump has threatened a 50% tariff against Brazil, a major producer of green coffee beans. That could lead to higher coffee prices. 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.
Why are coffee stocks going up?
TL;DR: Coffee is hitting a record high on international commodity trading markets due to bad weather affecting crops in Vietnam and Brazil. Prices likely to raise for consumers in the new year. 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.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. Tariffs, especially on robusta beans from Vietnam, are also reshaping global trade routes.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.This makes it particularly troubling to learn that the global coffee trade is reaching a crisis point due to the significant surge in prices, with retailers outright refusing to purchase coffee at its current rates.
Why is the price of coffee falling?
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. As a result, ripples are being seen throughout the global supply chain following a period of unpredictable crop yields and unstable consumer prices. 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.The coffee industry is a rapidly growing market with a bright future ahead. According to market projections, the global coffee market size value is projected to reach $102. CAGR of 5.Coffee is expected to trade at 404. 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 442.The United States imported around nine billion U. S. Germany followed in second place, importing around 5. U. S.This list ranks the top-performing coffee chains in the U. S. Starbucks: $31. Dunkin’: $11. Dutch Bros Coffee: $1.
Is coffee in trouble?
Climate experts say the underlying supply problems aren’t going anywhere. Over the next two decades, bad harvests could become the norm, wild arabica coffee could move from thriving to endangered, and the land available for coffee cultivation is expected to shrink by half or more. Brazil is the strongest powerhouse in the list of coffee output nations, producing on its own nearly 40% of the world’s supply, thanks to a conducive climate perfectly suiting coffee farming that is possible to find in many areas of the country.DESCRIPTION: Tim Hortons Coffee comes from many different sources, including Columbia, Guatemala, and Brazil. These three countries are the largest exporters of premium 100% Arabica beans, which are the only type of beans Tim Hortons uses for their coffee(Bharkhada, 2023).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.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.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.
What is the crisis in the coffee industry?
Climate change is a serious threat to our beloved coffee, but it’s not game over yet. The research paints a clear picture: rising temperatures, unpredictable rainfall, and increased pests and diseases are all conspiring to make coffee production more challenging and less reliable. 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.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.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.