Record coffee prices and rising inflation are reshaping the specialty coffee industry. Businesses face significant challenges in 2025, driven by high prices, cash flow issues, and global trade tensions. To thrive, operators must focus on effective cash flow management and adapt their strategies to the changing market landscape.
• The C price for coffee is hovering around US $4/lb, prompting roasters to switch to cost-effective blends or lower-cost origins.
• Cash flow is a pressing issue, with many roasters struggling to secure financing for large coffee purchases.
• Price volatility is exacerbated by US tariffs, increasing costs and complicating the supply chain.
• Collaboration and communication among supply chain actors are essential for managing risks and navigating the current economic climate.
Understanding these dynamics is crucial for stakeholders in the coffee industry. As prices remain high, businesses must innovate and streamline operations to survive. A focus on cash flow management and strong relationships can help companies adapt and thrive in this challenging environment.
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