Why are coffee futures 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. Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts.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.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.Production is predicted to increase over the next three years, easing concerns for farmers and investors and promising rapid price drops of Arabica and Robusta coffee beans. If this trend continues, it could result in a return of more products to the shelves and lower prices for consumers.
What is the potential of coffee market?
India coffee market was valued at usd 478 million in 2022 and is expected to reach usd 1,227. Million by 2032 at a cagr of 9. Coffee is an important plantation crop in india and has high export potential. The western ghats in india is the major hub of coffee cultivation. 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 Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5. The overall demand for coffee is a significant driver of the market.According to the International Coffee Organization, Uganda produced around 6. Africa at the time.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.
Is the coffee market still growing?
The Coffee Market Is Growing Rapidly Combined revenue in 2025 is expected to hit US$473. The revenue, at home is expected to grow annually by 2. CAGR 2025-2029). In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.Coffee was one of the best performing commodities in 2021, and it looks set to have another cracker in 2022.What is the forecast for the coffee industry? The coffee industry is projected to experience significant growth in the coming years, driven by changing consumer preferences, increasing coffee consumption in emerging markets, and the introduction of innovative coffee products.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.
What is the target market for coffee?
According to the most recent studies, roughly 75 percent of Americans consume coffee every day. Your target market may be college students and professionals who are commuting to work or attending class and are looking for a cheap cup of coffee to satisfy their caffeine cravings. Drip Coffee Drinkers The latest research has found that 77 percent of adults in the United States drink coffee on a daily basis. Depending on the price you charge for a cup of coffee, your target market may be students and business workers on their way to work or class, who want a cheap cup for the caffeine kick.
Is it good to invest in coffee stocks?
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. While morning coffee drinkers had a reduced risk of dying no matter how many cups they drank a day, morning drinkers who had 2 to 3 cups had the lowest risk – they were nearly half as likely to die from a heart or circulatory disease as those who drank none.Recent studies found that coffee drinkers are less likely to die from some of the leading causes of death in women: coronary heart disease, stroke, diabetes and kidney disease.
Why is the price of coffee falling?
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. Major factors include a lingering drought in Brazil, poor crop conditions in Vietnam, persistent global supply deficits, strong demand, and currency fluctuations. Weather uncertainties for Brazil’s 2025–26 harvest have also impacted coffee commodity trading.
What is the latest trend in coffee?
Coffee used to be just coffee, but now health-conscious coffee options are on the rise, says Kawahara. Expect to see more blends infused with superfoods like turmeric, matcha, and adaptogenic mushrooms. Mushroom coffee, whether mushrooms added to ground coffee, like Feral Fungi or Four Sigmatic, is widely available. With the rise of home cafés, TikTok recipes, and a growing focus on wellness, coffee lovers are exploring bold flavours, functional ingredients, and creative brewing methods right from their kitchens.