Climate change and tariffs are causing coffee prices to skyrocket, prompting a growing interest in bean-free coffee alternatives. The situation is dire for coffee producers, especially in major growing countries like Vietnam and Brazil, where droughts have severely impacted crop yields. Companies like Keurig Dr Pepper and J.M. Smucker have raised their prices multiple times in response to increasing costs. This trend is creating opportunities for food tech startups to develop substitutes that are both cheaper and more sustainable.
• Bean-free coffee alternatives, such as those made by Prefer, use food waste like soy pulp and broken rice.
• Prefer raised $2 million in funding to expand its manufacturing and distribution, aiming to reach 100 outlets in Singapore.
• The alternative coffee can be mixed with traditional coffee, but only up to 40% to maintain flavor.
• Coffee remains a vital global commodity, with climate change threatening its supply in the long term.
The rising prices of traditional coffee highlight the urgent need for innovation in the industry. While bean-free alternatives are emerging, efforts are also underway to enhance the resilience of coffee crops against climate change. Organizations like World Coffee Research are investing in breeding disease-resistant coffee varieties to secure the future of coffee production. This dual approach—developing alternatives while improving traditional coffee—ensures that coffee remains a staple beverage for millions.
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