The cost of your daily caffeine fix is set to rise as global coffee bean prices hit record highs.
The price for arabica beans, the most popular coffee variety, has soared over 80% this year, reaching $3.44 per pound.
Robusta beans, commonly used in instant coffee, have also seen a near doubling in price, hitting $5,694 per metric ton in late November.
This surge is driven by supply chain disruptions in Brazil and Vietnam, the world’s largest coffee producers.
Brazil endured its worst drought in 70 years, followed by heavy rains, which have significantly damaged arabica crops.
Similarly, Vietnam’s robusta plantations were affected by erratic weather, with droughts and heavy rainfall leading to reduced yields.
In response, major coffee brands are passing these costs on to consumers.
Nestlé, the owner of Nescafé and Nespresso, has increased prices and reduced pack sizes. UK shoppers, for example, have seen a 15% rise in the price of Nescafé Original over the past year.
Despite their efforts to absorb rising costs, manufacturers admit that producing coffee has become significantly more expensive.
Italian coffee giant Lavazza predicts that elevated prices will persist until at least mid-2025.
Brace for costlier coffee as global weather issues hit arabica and robusta crops.Chairman Giuseppe Lavazza described the current pressure on coffee supply chains as unprecedented, echoing the global concern for sustainability in the industry.
While the price hikes may pinch consumers, experts like Will Corby of Pact Coffee point out a silver lining.
He argues that higher market prices mean fairer wages for farmers, who have long been underpaid for their labor.
“Farmers are finally being paid enough to live on,” Corby remarked, emphasizing the importance of equitable practices in the coffee trade.
As demand for coffee continues to grow, these price trends highlight the challenges of balancing affordability, sustainability, and fair trade.
Whether sipping a latte or brewing instant coffee, consumers may need to adjust to a pricier cup in the coming years.