Since global coffee prices have surged to an all-time high this year, coffee lovers may soon have to pay more. The cost of Arabica beans, which account for most of the world’s coffee production, increased by 80% in 2024 to $3.44 a pound on Tuesday.
Similarly, unfavorable weather in essential coffee-producing countries has caused prices for robusta beans to soar, reaching a new high in September. Brazil, the world’s largest Arabica producer, has faced its worst drought in 70 years, followed by heavy rains that disrupted its crops.
Meanwhile, Vietnam’s top Robusta supplier has struggled with similar weather issues, further straining global coffee supplies. Experts warn that these weather events will likely reduce harvests, intensifying supply shortages.
“But right now they are almost at a tipping point. A lot of them are mulling a price increase in supermarkets in [the first quarter] of 2025,” stated Vinh Nguyen, the chief executive of Tuan Loc Commodities. Nguyen explained that major companies like JDE Peet and Nestlé plan to increase prices in early 2025 to offset rising expenses.
Italian coffee giant Lavazza confirmed this trend, stating it had no choice but to adjust prices despite its effort to shield consumers. “Quality is paramount for us and has always been the cornerstone of our contract of trust with consumers,” the company stated.
Nestlé’s head of coffee brand, David Rennie, echoed the sentiments, describing the current market as one of the most challenging in recent history. Low inventories and rising global demand have further inflated global coffee prices. In countries like China, coffee consumption doubled last year, intensifying pressure on supplies.
