Why is coffee stock dropping?
After facing low harvests and high prices in the spring, coffee prices are dramatically decreasing. Ripples are being seen throughout the supply chain, following a period of unpredictable crop yields and unstable consumer prices. 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.In the coffee sector, when the price is high and farmers produce more, the supply rises. However, during the periods of constant demand that follow, the additional volume on the market puts downward pressure on price. Conversely, when the price is low, less coffee is produced and offered by farmers.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.The global coffee industry is navigating an extended period of high market prices. Over the last two years, green coffee costs have almost doubled, reaching an all-time high of US $4. February 2025.Securing coffee’s future The global coffee crisis, driven by climate change, soil depletion, and economic strain, poses a real threat to the future of coffee. However, with the right strategies, the coffee value chain can be transformed into one that is both sustainable and profitable.
What is driving the price of coffee?
The rising coffee prices are part of a larger, global challenge driven by climate change, economic pressures, and geopolitical uncertainty, yannis apostolopoulos, the ceo of the specialty coffee association (sca), shares with food & wine. The future of robusta coffee robusta prices and demand will most likely continue to remain high as producing countries and importing roasters alike look to mitigate costs and climate change with arabica alternatives.The coffee trade operates through buying and selling contracts for coffee beans, which are used by traders to speculate on the market’s high price volatility. Buyers, such as coffee roasters or distributors, enter into contracts to purchase coffee beans at a future date and predetermined price.The global coffee market is experiencing unprecedented volatility in 2025. Arabica coffee prices have more than doubled in the past year, exceeding $4 per pound. This situation presents both challenges and opportunities for businesses and consumers.A combination of rising global consumption and weather events have pushed coffee prices up. Tariffs could hit next.At a basic level, the price increase is a consequence of demand outstripping supply. Coffee consumption has grown globally over past decades and the industry is struggling to keep up.
Is the coffee market growing or shrinking?
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 forecast for 2025 and beyond For its coffee forecast for 2025, Citigroup raised its US coffee price estimate in November 2024 to $2. Looking further ahead, the bank expects prices to normalise to $2.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. There was even a day where the price soared up to $4.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.Total coffee imports were forecast to total around 137 million 60-kilogram bags within the 2023/24 period, while total export numbers are expected to reach more than 141 million. In 2023, the United States was the world’s top coffee importer, followed by Germany, Canada, and the Netherlands.
Will coffee prices go up in 2025?
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. Coffee is expected to trade at 306. 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 335.Summer 2025 Coffee Trend #1: Sustainability Leading cafés are doubling down on reusable cups, compostable silverware, and energy-efficient design. Gen Z shops with their values in mind and eco-conscious everything isn’t a passing trend, it’s a basic requirement for entry.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.
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. The global coffee market size was valued at USD 97. Billion in 2024 and is projected to reach from USD 102. Billion in 2025 to USD 156. Billion by 2033, growing at a CAGR of 5.Production is predicted to increase over the next three years, easing concerns to farmers and investors and resulting in rapid price drops of Arabica and Robusta coffee beans. This could see a return of more products on the shelves and lower prices for consumers.After facing low harvests and high prices in the spring, coffee prices are dramatically decreasing. Ripples are being seen throughout the supply chain, following a period of unpredictable crop yields and unstable consumer prices.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.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.