Why are coffee prices increasing?

Read more about developments in the coffee market that cause coffee prices to rise in 2025.

Increasing coffee prices in 2025

Have you noticed that your favorite cup of coffee has gotten a little more expensive lately? In 2025, coffee prices have increased due to several reasons. What exactly is going on and why are prices rising? We've put down and explained the main reasons for you below.


Influence of weather on harvest

For coffee production, weather plays a big role. Brazil, the largest producer of Arabica coffee beans, has experienced extreme drought. In addition, Colombia has experienced temperature changes and Vietnam has suffered from heavy rains. These extreme weather conditions have resulted in lower production, leading to rising prices.


Growing coffee culture

Coffee culture is on the rise in many countries around the world. For example, coffee is already widely consumed in Europe and North America. And an increase can be seen in China and India, among others. With limited supplies due to disappointing harvests, growing demand is putting additional pressure on supplies. The scarcity is causing prices to rise.  


Stricter regulations

What is good for the environment is not always nice for the consumer's wallet. The European Union has introduced the Deforestation Regulation (EUDR) that aims to stop deforestation. Producers have to prove that their coffee beans do not contribute to deforestation, leading to additional costs and more complex trade processes. This has a direct impact on the availability and price of coffee.


Rising transportation and production costs

Products face high fuel prices, higher labor wages and the rise in energy prices. These costs are reflected in the selling price of coffee beans, which increases a cup of coffee for consumers.


Speculation and market influences

Coffee is not only traded as a consumer product, but also as a commodity in financial markets. Larger investments and speculation in the coffee market affect price formation, causing fluctuations that are not always directly linked to the physical availability of coffee.


What does this mean for the future?

Coffee prices are expected to remain high for now, especially if production problems in coffee countries continue. Some say there is a chance for prices to stabilize by the middle of this year, while others think the price of coffee will continue to rise. All parties involved are monitoring market developments and doing their utmost to keep coffee accessible to all.

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