What is the coffee market forecast for the US?
The U. S. USD 22. USD 23. USD 32. CAGR of 3. Overall, while there are risks involved, the ongoing demand and market growth provide a compelling case for coffee as a worthwhile addition to investment portfolios in 2025.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.The futures market plays a crucial role in determining coffee prices. Futures contracts allow producers, exporters, and traders to hedge against price volatility by locking in prices for future delivery. This can provide some stability in a market that is otherwise highly unpredictable.Heat, drought and other poor weather conditions have hurt coffee production globally in recent years, causing prices to surge. World coffee prices rose nearly 40% in 2024, according to the Food and Agriculture Organization of the United Nations.
Why is the price of coffee falling?
Sugar And Coffee Prices Fall On Oversupply And Policy Shifts. Global sugar and coffee markets dipped as robust production meets shifting demand and changing US trade policies ripple through key exporters. Dr Gerald Kyalo, the commissioner in-charge of coffee development at the ministry, said the fall in coffee prices has been caused by the production surge from Brazil and Vietnam, which are the top two coffee-producing countries.Brazil leads the way in coffee exports & production according to the coffee export data of Brazil, followed by Vietnam and Colombia. The global demand for specialty coffee is on the rise, with countries like Ethiopia and Guatemala gaining popularity and production rates, as per the USDA.Coffee prices have been skyrocketing for months. Earlier this year, global prices hit record highs due to supply issues in major producing countries such as Brazil and Vietnam. At the same time, U. S. Brazil have upended the global coffee market, pushing prices upwards.Coffee Inflation That report showed that packaged whole bean/ground and instant coffee cost consumers nearly 21% more in August 2025 compared to a year earlier.Who sells the most coffee in the US? Starbucks sells the most coffee in the U. S with an annual revenue of $36. It’s closest competitor is Dunkin’ Donuts.
What is happening in the coffee market?
Coffee growers are dealing with a lot right now. Most immediately, the Trump administration’s tariffs, which threaten their sales, add to the ongoing challenges of pests and diseases for coffee production. In the longer term, experts say the coffee industry can’t continue with business as usual. 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.Brazil and Colombia have been the top coffee exporters to the US — and Switzerland has risen to third. This doesn’t mean that the small Alpine nation has developed a robust coffee farming industry.In the US, McDonald’s uses 100% Arabica coffee beans. Most super market coffee is made from Robusta beans. Arabica beans are a little more difficult to grow and are typically more expensive than Robusta beans.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.Major coffee importing countries worldwide 2024 As the leading global coffee importer, the United States imported more than 1. U. S. Colombian coffee in 2023.
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. 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.
Is the coffee price going up?
Coffee has become markedly more expensive over the past year as poor harvests and higher import duties have helped push the cost of retail coffee 41% higher since September 2024 alone. Price Forecasts and Market Outlook Looking further ahead, the bank expects prices to normalise to $2. Trading Economics projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026.Revenue, at home (e. Coffee market amounts to US$105. Revenue, out-of-home (e. US$380. Revenue, combined amounts to US$485.Coffee is expected to trade at 401. 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 445.