Coffee prices in global markets have soared to record levels, with consumers likely to face further hikes next year.
The price of Arabica beans has surged by over 80% this year, recently hitting $3.44 (£2.70) per 0.45kg. Similarly, Robusta beans reached new highs in September, according to reports from the BBC.
These rising prices are attributed to smaller-than-expected crops following adverse weather conditions in Brazil and Vietnam, the world’s largest coffee producers. Italian coffee company Lavazza’s vice chairman, Guiseppe Lavazza, had previously predicted a drop in prices this year. However, he acknowledged being mistaken, citing ongoing supply chain challenges, geopolitical disruptions, and poor harvests as reasons for the sustained price increase.
In light of these challenges, coffee brands are contemplating raising prices further in 2025. British Retail Consortium chief executive Helen Dickinson has warned that coffee price increases are imminent, pointing out that costs for other products, such as tea and seafood, also remain high due to a difficult winter.
Consumers should prepare for continuing price surges in coffee as the market adjusts to ongoing supply and geopolitical challenges.
