Why are coffee prices rising?

Global green coffee prices have risen sharply in recent years, presenting us and many other coffee roasters, green coffee traders and, of course, you as consumers with new challenges.

The main reasons for this are climatic changes such as droughts and frost in key coffee-growing countries such as Brazil, which is the world's largest coffee producer. These weather extremes have caused crop failures and reduced global supply. Added to this are price-increasing factors such as rising production and energy costs, geopolitical uncertainties, growing demand and currency fluctuations, all of which affect the entire value chain.

Coffee price development in euros

Green coffee prices in global trade have risen significantly since the pandemic in 2020. However, the increase in green coffee prices has rarely been as high as in 2024. In November last year, the price of coffee reached a 47-year high of USD 3.26 per pound (approx. USD 6.52 per kilogram), an increase of 70% compared to the previous year. Unfortunately, forecasts suggest that coffee prices will remain at a high level in 2025, which is important for both producers and consumers worldwide.

Background & impact

Climate change and weather extremes

Drought and frost: In Brazil, the world’s largest coffee producer, weather extremes such as prolonged droughts and unexpected periods of frost have massively reduced harvests. Such weather conditions damage coffee plantations, reduce production volumes and increase prices.

Increased production costs

Fertilizer, energy and labour costs: The prices of agricultural inputs such as fertilizers and pesticides have risen, as have the costs of energy and labour. These additional costs contribute to the higher final prices for green coffee.

Growing demand for coffee

Growth in consumption in new markets: Demand for coffee has risen sharply, particularly in countries such as China, India and other Asian markets. This increases global price pressure as supply is limited.

Geopolitical uncertainties

War and trade policy: Conflicts and geopolitical tensions, e.g. the Russian war of aggression against Ukraine, influence global markets. They drive up transportation and production costs and increase uncertainty for traders and producers.

New EU regulatory requirements

Sustainability and deforestation laws: Stricter requirements in the EU, such as the European Deforestation Act, demand more proof of the sustainability of raw materials. These requirements increase production costs in the countries of origin, especially for small coffee farms, and further restrict supply in the EU.

Your favorite coffees in the usual quality – despite higher costs

Due to the massive increase in green coffee prices, especially from Brazil, we are also forced to make price adjustments for some coffees. This is the only way we can ensure that we can continue to offer you your favorite coffees in the usual quality. The green coffees that we purchase for our blends, for example, have become an average of €4 per kilogram more expensive compared to the previous year. This development affects the entire industry and is necessary to ensure sustainable production and quality.

For coffee roasters like us, this means working responsibly with suppliers to ensure quality and transparency along the supply chain. At the same time, we want to inform our customers about the challenges and emphasize our commitment to sustainable and fair-trade coffee. Although the higher prices are a burden, they are also an opportunity to raise awareness of the coffee value chain and promote appreciation for this artisanal product. By working closely with our partners, we can continue to offer the best quality – and set an example of fairness and sustainability in the process.

written by

Dominic Ottlinger

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