Consumer interest in coffee remains robust, even as prices soar to unprecedented levels. The coffee market is experiencing a significant shift due to various factors impacting supply and demand. Despite rising costs, many consumers continue to purchase their favorite caffeinated beverages, although some changes in buying patterns are evident.
• Coffee prices have reached a 47-year high due to droughts in Brazil and storms in Vietnam, affecting key growing regions.
• Supply chain issues, including congestion and container shortages, have further strained availability.
• In the EU, coffee prices have climbed by 20% in top grocery markets, while the UK saw a 5% increase per kilogram.
• Global coffee prices rose by 8.4% year-on-year, indicating a trend of increasing costs.
Understanding these trends is crucial for consumers and retailers alike. The resilience of coffee demand suggests a strong cultural attachment to the beverage. However, the rising prices could lead to shifts in consumer behavior, with potential long-term impacts on how coffee is marketed and sold.
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