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Global Coffee Prices Set to Surge 25% by 2025 Amid Supply Chain Woes

by Jessica

The price of coffee is expected to surge by up to 25% in 2025 due to severe disruptions in the global coffee supply chain. Catastrophic weather events in Brazil and Vietnam—the world’s largest coffee producers—have significantly threatened their harvests, sending shockwaves through international markets.

Brazil, which accounts for about a third of the world’s Arabica coffee supply, is experiencing its worst drought in over 40 years. This prolonged dry spell has devastated coffee-growing regions, stunting flowering and leaving farmers worried about a steep drop in the 2025/26 harvest. Despite some recent rainfall in key regions like Minas Gerais, experts believe years of insufficient precipitation have caused lasting damage to production stability.

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Meanwhile, Vietnam, the leading producer of Robusta coffee, faces its own crisis. Typhoons and unpredictable rainfall have delayed harvests and reduced bean quality, compounding global supply chain challenges. As the world relies heavily on these two nations, the ripple effects are pushing coffee futures to record highs.

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Arabica coffee prices are already at their highest levels in decades, while Robusta prices have soared to levels unseen since 1977. Experts predict these trends will drive retail coffee prices higher, affecting consumers and businesses worldwide.

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In addition to weather-related setbacks, broader economic factors are exacerbating the issue. The weakening Brazilian real has fueled market volatility, inflating costs further. Simultaneously, rising global demand for coffee—particularly in emerging markets—is tightening supply even more.

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Consumers are likely to feel the impact across all sectors, from pricier café beverages to higher supermarket costs. Countries heavily dependent on imports, such as Russia, may face even steeper increases due to fluctuating exchange rates.

These challenges come as global agricultural markets face disruptions across multiple commodities, raising alarms about long-term supply chain resilience. Analysts warn that recovery for Brazil and Vietnam will be key to stabilizing the coffee market, though unpredictable weather patterns pose ongoing risks.

As the world braces for a potential 25% rise in coffee prices, the industry is preparing for significant changes. Both consumers and businesses must adapt to a volatile market that could reshape global coffee consumption in the years to come.

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