Why is the price of coffee constantly increasing?
Coffee prices will continue to rise in 2025
In the general climate of precision that plagues us, coffee lovers have their own suffering: the price of our favorite beverage has been on the rise for some time, in a price increase race that the global coffee market has seen since the 1970s, as relevant researchers point out.
What are the reasons why the increase in coffee prices seems to continue next year? The problem is particularly complex and is influenced by a multitude of factors, but we will try to map the five main reasons why the price of the precious beans is expected to be even more intense next year.
Why is the price of coffee constantly increasing?
Consequences of climate change: The areas belonging to the “Coffee Belt”, that is, between the Tropics of Cancer and Capricorn, are among the first to receive the pressure of climate change. Coffee is a natural product, a sensitive crop in fact, which is greatly affected by extreme weather events, as well as increasing temperatures. In Brazil, the largest coffee producer in the world, the recent year was marked by droughts that destroyed a large part of the crop, while in Vietnam, which had the second place in total coffee production and the first in Robusta production, farmers are abandoning coffee cultivation en masse to switch to crops that are more resistant (and consequently, more efficient) to the climate crisis. These conditions have created a decrease in supply, while demand has taken the upward trend.
Increased demand: Coffee has long been the second most popular beverage after water, and the most in-demand product after oil. The conditions in the post-covid world have increased household consumption and skyrocketed the demand for coffee, while in recent years the change in coffee culture in the countries of Southeast Asia has been added, which has created an ever-growing, large and demanding audience.
European Legislation: The expected European Directive on the protection of deforestation will greatly affect the prices not only of coffee, but also of a number of other products, such as cocoa. By stipulating that coffee that has been cultivated on deforested lands cannot be imported and traded within the EU, the directive will put a number of producers out of European trade, until they are forced to adapt to the new data. At the same time, it is certain that it will increase the costs of coffee cultivation, while further reducing the supply of coffee, at least in European territories and of course in our country.
Higher Transportation Costs: Active war fronts and political instability internationally create conditions that skyrocket transportation costs. In addition to the increase in fuel prices, several transportation routes (mainly those crossing the Red Sea, where rebels and pirates operate) are forced to be modified for security reasons, with alternatives of increased cost.
Euro / Dollar Exchange Rate: Always, from the American elections to the first months of the term of each new president, there is a nervousness in the international markets, which affects the exchange rates between the main currencies. Until the situation normalizes, the exchange rate fluctuations do not seem to be particularly positive towards the euro, contributing to the general race to increase prices.
At Coffees.gr, we strive – and will always strive – for the combination that has made us stand out, for so many years to offer the best possible espresso, at the best possible prices, no matter how difficult the international climate may be.
