Ground coffee prices have reached an all-time high, hitting $7 per pound in January. This sharp increase from $4 in January 2020 is driven by various factors, including reduced production and rising demand. The situation is complicated by climate challenges affecting major coffee-producing countries like Brazil and Vietnam. Meanwhile, coffee consumption is booming in China, where people are shifting to higher-quality coffee.
• Disastrous growing seasons in Brazil and Vietnam have led to fewer coffee beans available.
• Coffee consumption in China has surged by 150% over the past decade.
• Arabica coffee futures have seen a 70% price increase since November, shocking industry professionals.
• A recent poll suggests prices may drop by 30% later this year due to reduced demand and a potential bumper crop in Brazil.
This surge in coffee prices impacts consumers and retailers alike. Companies like Starbucks are feeling the pressure, leading to menu cuts and layoffs. The situation highlights the delicate balance between supply, demand, and climate change in the coffee industry.
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