Why is coffee going to increase in price?
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. The prices will continue to go up, in my mind, Hoffmann said. Climate change isn’t going away, he said. Coffee also requires specific conditions to grow, which are threatened by climate change: by 2050, the areas available for coffee production could be half what they are today,[8] and this will disproportionately affect the arabica variety, the most popular globally.So how will climate change impact coffee? A recent study published on PLOS One predicts an overall decline in the world’s suitable growing land for arabica coffee by 2050.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.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.
What’s the future of the coffee market?
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 July 2025, the median price of a coffee was $3. June 2025.Trading Economics meanwhile, projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026.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.The United States imported around nine billion U. S. Germany followed in second place, importing around 5. U. S.Consumers spend more than $300 million on coffee products every day—nearly $110 billion per year.
Is coffee a good investment now?
The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities. Today, global coffee shortages are becoming a pressing concern. This shortage has impacted farmers, traders, and coffee lovers worldwide. Moreover, this shortage has also raised other concerns such as coffee prices.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.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.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.Template for Customers: 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 coffee market in 2030?
Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. 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.A combination of rising global consumption and weather events have pushed coffee prices up. Tariffs could hit next.Recent tariffs on imported coffee are taking effect, and according to the Bureau of Labor Statistics, coffee prices rose over 14% on an annual basis in July. Experts are warning that prices could rise even further with a new 50% tariff on coffee imports from Brazil, the world’s largest producer of coffee beans.The Coffee Market Is Growing Rapidly The global coffee market is experiencing significant growth, driven by several key factors. The coffee market is expected to reach US$96.
Will coffee go up in 2025?
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. Arabica and robusta coffee prices have slumped, thanks largely to a fast-moving harvest in Brazil and a strong recovery in Vietnam’s output. In fact, robusta prices just hit their lowest level in over a year.Our 5th largest coffee-producing country is Honduras. Producing over 475 metric tonnes of coffee a year, they are nudging in front of Ethiopia with a difference of 3,795 metric tons. Its climate, similar to that of Costa Rica and Guatemala, was a coffee producer that until recently, was overlooked.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.Brazil: The Undisputed Coffee Production Leader Brazil produces approximately 35-40% of the world’s coffee, making it the largest coffee producer for over 150 years.Uganda produces over 209 thousand metric tons of coffee beans a year and is known for its Robusta coffee production. Its coffee production has been cultivated over generations.
What is the future of Arabica coffee?
Based on climate change scenarios, Kew’s Royal Botanic Garden has estimated that wild arabica coffee could be extinct by 2100. Wild coffee plants store important genetic material that could be used to help scientists develop new climate-tolerant and vigorous varietals. 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.Coffee production has grown by about 60% in the last 30 years. Producing one pound of roasted coffee emits about 11 pounds of carbon emissions. Americans dispose of about 50 billion coffee cups annually, many of which are non-recyclable. Coffee production contributes to deforestation, habitat loss, and water pollution.