The coffee industry is facing a significant challenge as prices remain high, reaching record levels in early 2025. Roasters and cafés must decide whether to raise retail prices or risk damaging their profit margins. Many businesses have already increased their prices in anticipation of these changes. A recent UN FAO report indicates that consumers in the EU and US will feel the impact of rising coffee prices within months, with lasting effects expected for years.
• Up to 80% of coffee price increases will be passed on to consumers in both the EU and US.
• The ongoing global conflicts and climate crisis are contributing to rising costs in the coffee supply chain.
• Coffee shop operators are adjusting their pricing strategies to maintain profitability amid rising costs of coffee, labor, and energy.
• Consumer behavior is shifting, with more people likely to brew coffee at home instead of visiting cafés.
Understanding the true cost of coffee is crucial for consumers. As prices rise, coffee businesses have a chance to educate customers about the value of specialty coffee. This moment could help break the cycle of undervaluing coffee as a luxury product. The industry must adapt to these changes, focusing on quality and customer experience to justify higher prices.
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