Coffee Prices Shatter More Records – CoffeeTalk

The price of coffee on international commodity markets has reached its highest level on record, with Arabica beans and Robusta beans gaining over 80% this year. This comes as coffee traders expect crops to shrink due to bad weather in Brazil and Vietnam, the world’s two largest producers. Coffee brands are considering increasing prices in supermarkets in the first quarter of 2025.

Major coffee roasters have been able to absorb price hikes to keep customers happy and maintain market share, but it looks like that is about to change. Brands like JDE Peet and Nestlé are almost at a tipping point, and many are mulling price increases in supermarkets in the first quarter of 2025. Nestlé’s head of coffee brands, David Rennie, said the coffee industry was facing “tough times” and would have to adjust its prices and pack sizes.

The last record high for coffee was set in 1977 after unusual snowfall devastated plantations in Brazil. Concerns over the 2025 crop in Brazil are the main driver, as the country experienced its worst drought in 70 years during August and September, followed by heavy rains in October, raising fears that the flowering crop could fail. Robusta supplies are also set to shrink after plantations in Vietnam faced both drought and heavy rainfall.

Coffee is the world’s second most traded commodity by volume, after crude oil, and its popularity is increasing. Demand for the commodity remains high, while inventories held by producers and roasters are reported to be at low levels. The upward trend in coffee prices is expected to persist for some time.

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