What’s the future of the US coffee market?
The market is valued at USD 23. USD 28. Coffee pods and capsules lead growth with a projected 5. CAGR through 2030 while ground coffee remains the largest segment. The correct answer is Brazil. Brazil is the world’s largest coffee producer. Brazil produces almost one-third of the world’s coffee, with 3,558,000 metric tonnes (7,844,000,000 pounds) produced. Coffee beans can be classed into four types: Arabica, Robusta, Liberica, and Excelsa.Coffee market summary. The global coffee market size was estimated at usd 269. Usd 369. Cagr of 5.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.Coffee is expected to trade at 400. 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 439.Situated in South America, Brazil is the top producer of coffee. They produce 2,68 million metric tons of coffee on average every year. Brazil has also held onto its first-place position as the world’s largest coffee producer for over 150 years.
Will coffee prices increase in 2026?
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. The Kauai Coffee Estate is the largest coffee farm in the U. S. We encourage you to see it for yourself and to take one of our free walking tours. You’ll learn all about how our coffee is grown, harvested and roasted right here on the island.Simply put, we do not have the climate to support growing coffee. Additionally, American coffee production is projected to continue to decrease, experiencing a decrease of 26% in 2023-24.Did you know that Hawaii is the only U. S. Every sip of 100% Kauai Coffee is always smooth, delicious and full of aloha. Learn more about the journey from seed to cup.Coffee prices are expected to remain volatile but broadly trend upward through the remainder of 2025.Climate-wise, most of the United States doesn’t offer favorable growing conditions for coffee (for Arabica plants, these factors include mild temperatures with high humidity, rich soil, rainy and dry seasons, and altitude—the plants usually prefer a more mountainous terrain.
Is coffee production declining?
The volume represents a 7% reduction compared to the 61. The decline is mainly linked to arabica coffee, which suffers from negative bienniality and climatic problems recorded in the second half of 2024, such as excessive heat and lack of rainfall. Brazil is the country that produces and exports the most coffee overall, particularly Arabica beans. Brazil has dominated the world’s coffee production for the last 150 year, since mid 1800s.Together, Colombia, Brazil, and Switzerland accounted for over half of the $8. US in 2024. The countries with the next-most coffee exports to the US were Canada ($582 million), Guatemala ($437 million), and Honduras ($423 million).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.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.
Why is there a shortage of coffee?
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. Coffee prices ebb and flow according to supply and demand, as they do for other commodities. Extreme weather in major producers like Brazil and Vietnam crimped supply, pushing up prices.Coffee prices are continuing to fall according to Intercontinental Exchange (ICE), with the price registered on 17 June 2025 the lowest recorded in almost five months.The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities.Some of the primary risks of investing in coffee include: Price Volatility: Coffee prices are highly volatile and can fluctuate significantly due to factors such as weather conditions, changes in global demand, geopolitical instability, and supply chain disruptions.
Are coffee prices going to rise?
Over the longer term, consumers should brace for higher-than-average prices, analysts said. Extreme weather that negatively impacts coffee harvests is expected to be more common, and coffee consumption worldwide continues to increase and bolster demand, they said. 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.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.Coffee price change in imported coffee beans In Vietnam, for instance, which grows most of the world’s Robusta beans, drought caused a 20% drop in coffee production in 2023 and 2024, with exports falling by 10% for two years in a row.