Will coffee prices go up in 2025?
Coffee future prices (KC1:COM) continue to surge in 2025, with both arabica and robusta reaching multi-year highs. The impact is being felt in the U. S. Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.Coffee is expected to trade at 422. 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 461.Coffee trading involves buying and selling coffee on the commodities market, either physically or through financial instruments like futures, options and CFDs. Traders speculate on the price movements of coffee beans – primarily arabica and robusta – to profit from fluctuations driven by supply and demand factors.According to the International Coffee Organization, Uganda produced around 6. Africa at the time.
Should I invest in coffee stocks?
The coffee market is one of the most active commodity markets in the world, with an estimated 2. The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities. 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.Brazil leads the way in coffee exports & production according to the coffee export data of Brazil, followed by Vietnam and Colombia.Brazil holds the prestigious position of being the number one coffee producer globally, renowned for its high-quality Arabica and Robusta beans. The country’s vast plantations and skilled farmers contribute significantly to its dominance in the coffee industry.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.
Why are coffee stocks rising?
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. Coffee Prices Drop as Supply Recovers After Climate Setbacks. 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.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.It’s getting warmer and as we move to higher and higher altitudes we eventually get to the top of the mountain and there’s nowhere left to go,” Professor Henry said. That’s what’s happening with the large proportion of coffee-growing areas. They’re becoming less suitable.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.
Will coffee prices go up?
Analysts agree that coffee prices will likely stay high or rise further. A 2025 reuters analysis noted global coffee prices hit multi-decade highs due to weather challenges in major production regions such as brazil and vietnam. An improved supply and demand situation, where the underlying fundamentals are more positive, with coffee year 2024/25 estimated to be in surplus. An improved harvest from brazil, with the weekly progress throughout july showing that it is ahead of the rate for crop year 2024/25.Severe droughts and erratic rainfall in Brazil and Vietnam have triggered a supply crunch, while weather unpredictability has destabilised entire supply chains, both of which continue to pressure the coffee sector in 2025.