The rising cost of coffee is making headlines as prices reach levels not seen in decades. This surge is largely due to severe droughts and unusual weather patterns affecting coffee-producing countries, especially Brazil and Vietnam. These changes are reshaping the coffee market and impacting consumers worldwide.
• Brazil's coffee harvest is expected to drop by up to 25% due to drought damage.
• The cost of arabica coffee has risen by around 70%, while robusta prices have doubled.
• Increased coffee consumption in producing countries, like Brazil and China, is reducing export availability.
• Major brands have already raised prices, and coffee shop owners are considering similar moves.
This situation highlights the vulnerability of coffee supply chains to climate change. As demand continues to rise, especially in emerging markets, the days of affordable coffee may be over. Consumers may need to adjust to higher prices as the market stabilizes and adapts to these new realities.
Enjoying the read? Subscribe for free to one of the fastest-growing newsletters and get weekly coffee news (TL;DR updates) delivered right to your inbox.