Why is coffee stock so high?
Tariffs could drive them even higher. A combination of rising global consumption and weather events have pushed coffee prices up. Over the last two years, green coffee costs have almost doubled, reaching an all-time high of US $4. February 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.And that remainder wasn’t small, with the average price of a cup of coffee increasing by 17% since 2022 (Lumina Intelligence). However, there are signs that coffee prices are beginning to stabilise, as they level out and begin to decline.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.
Why is the coffee market growing?
A combination of trends—including businesses’ heightened attention to how coffee beans are grown, higher quality ingredients, and the expectation that the drink offers more than taste but also an experience— is creating even more caffeinated consumers, boutique coffee businesses and industry analysts told CO—. Starbucks, Luckin Coffee and Dunkin’ are the three largest coffee companies in the world, respectively. The largest coffee houses typically have substantial supply-chain relations with the world’s major coffee-producing countries.Brazil leads the way in coffee exports & production according to the coffee export data of Brazil, followed by Vietnam and Colombia.Climate & Production Issues: Extreme weather events in Brazil and Vietnam – two of the world’s biggest coffee producers, have caused lower yields and uncertainty around future harvests. Rising global temperatures mean coffee farms are being forced to higher altitudes, increasing production costs.Brazil is the world’s top coffee producer, followed by Vietnam and Colombia. Indonesia and Ethiopia round out the list of top five coffee producers.Key competitors include Dunkin’ Donuts and McDonald’s. Starbucks also faces competition when it comes to coffee products available for purchase outside of brick-and-mortar cafes from brands like Nespresso, Folgers, Keurig, and Maxwell House.
Will coffee be gone by 2050?
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. Rising demand meets supply chain challenges: Coffee consumption is growing worldwide, but higher fuel costs, labor shortages, and disrupted shipping are making coffee more expensive to deliver.Major coffee-growing regions like Brazil, Colombia, and Vietnam are primarily contributing to this shortage due to many reasons like extreme weather conditions, supply chain disruptions, and labor challenges. Another reason adding to this complexity is the Red Sea shipping crisis.In conclusion, the Coffee market in Worldwide is experiencing growth and development due to changing customer preferences, including a shift towards premium and specialty coffee, the increasing demand for sustainable and ethically sourced coffee, and the convenience of ready-to-drink coffee products.Speculation, Shortages, and Supply Chain Shocks Coffee is traded on global stock exchanges, and speculation has inflated prices without benefiting the farmers. Meanwhile, extreme weather in top-producing countries like Brazil, Colombia, and Vietnam has led to poor harvests.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. Price hikes would be especially noticeable in grocery stores.
Who first traded coffee?
However, it’s largely believed that coffee beans were originally exported from Ethiopia to Yemen. Yemeni traders later brought coffee plants back to their homeland and began to grow them there. Karnataka. Karnataka is the undisputed leader in coffee production in India, accounting for approximately 70% of the country’s total coffee output. In 2022, the state contributed over 55% to the national output by harvesting around 3. Arabica.In the Indian context, coffee growing started with an Indian Muslim saint, Baba Budan, who, while returning from a pilgrimage to Mecca, smuggled seven coffee beans (by hiding them in his beard) from Yemen to Mysore in India.Traditionally, India has been a noted producer of Arabica coffee but in the last decade robusta beans are growing substantially due to high yields, which now account for over 60 percent of coffee produced in India.Brazil. Situated in South America, Brazil is the top producer of coffee. They produce 2,68 million metric tons of coffee on average every year.
What is happening in the coffee market?
The Coffee Market Is Growing Rapidly Out-of-home revenue – generated in restaurants and bars – will touch US$376. Combined revenue in 2025 is expected to hit US$473. The revenue, at home is expected to grow annually by 2. CAGR 2025-2029). 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. Our buyers, based in Lausanne, Switzerland, scour the globe for the finest coffees, including our premium, single-origin Reserve selections.Aside from a small fraction grown in Hawaii, all of America’s coffee comes imported from countries like Colombia, Brazil, and Switzerland. The United States drinks more coffee than any single country in the world.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.The Indian coffee importing countries are Italy, Germany, Russia, Belgium, and Jordan. The major coffee exporting countries are Brazil, Switzerland, Germany, the Netherlands, the United States, and Canada.U. S. Coffee Brands. As mentioned above, the U. S. Starbucks remains the industry leader with $27. Dunkin’ at $11. In total, there are 29 national players — a mixture of big-name national coffee chains and smaller regional businesses.
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. According to a study by The Climate Institute in Australia, the world could run out of coffee by 2080 due to climate change. Furthermore, by 2050 they state that it’s possible that half of the world’s current land-growing coffee beans could become unsuitable.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.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 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.
Which country trades the most coffee?
Brazil leads the way in coffee exports & production according to the coffee export data of Brazil, followed by Vietnam and Colombia. Brazil is the world’s top coffee producer, followed by Vietnam and Colombia. Indonesia and Ethiopia round out the list of top five coffee producers.Distinctive details: Brazil is the top coffee-producing country in the world by volume, growing both arabica and robusta. With hundreds of thousands of coffee plantations across many states, a third of all the world’s coffee comes from Brazil.Brazil is the largest coffee producer in the world, accounting for over 39% of global coffee production. The country is known for its high-quality Arabica beans, which are grown in the states of Minas Gerais, Sao Paulo, and Parana. On average, Brazil produces 2.Coffee is one of the world’s most popular beverages. Brazil is the world’s top coffee producer, followed by Vietnam and Colombia. Indonesia and Ethiopia round out the list of top five coffee producers.The country single-highhandedly produces nearly 40% of the world’s coffee supply. Many areas in Brazil have a climate perfectly conducive to coffee farming.