Coffee prices on international commodity markets have reached unprecedented levels, prompting concerns about further increases in consumer costs.
The price surge for Arabica coffee beans, climbing over 80% this year, has seen prices reach $3.44 (£2.70) per 0.45kg. Meanwhile, Robusta beans also hit a new peak in September. An expert suggests coffee brands are contemplating price hikes in 2025 due to these costs.
Adverse weather conditions have significantly impacted coffee crops in Brazil and Vietnam, the world’s largest producers, leading to diminished harvests. As crop yields shrink, the pressure on coffee prices is expected to persist.
Italian coffee company executive, Guiseppe Lavazza, acknowledged the challenges facing the coffee industry, admitting a previous miscalculation. Lavazza had earlier predicted a fall in prices this year, but current geopolitical and supply chain disruptions, coupled with poor harvests, have continued to drive costs up.
The British Retail Consortium has also highlighted the inevitability of rising coffee prices. Chief executive Helen Dickinson emphasised that the elevated prices of other goods such as tea and seafood add to the ongoing economic challenges, particularly during the demanding winter season.
Given the current trends, consumers should brace for continued upward pressure on coffee prices well into the next year, driven by challenging weather conditions and geopolitical factors.
