The Outlook on Coffee Prices in 2025

You may already be aware but as we enter 2025, spot green coffee prices have surged to unprecedented levels. Several factors, including climate change, supply chain disruptions, and rising global demand, are driving this significant price increase. For coffee roasters, importers, and consumers alike, understanding these market dynamics is crucial.

Key Behind the Price Surge.

Climate Change

.Climate change is having a profound effect on coffee production. Rising temperatures, shifting rainfall patterns, and an increase in extreme weather events are making it more difficult for coffee farmers to maintain stable yields. Brazil, the world's largest coffee producer, has been particularly affected by prolonged droughts and irregular weather cycles, while Vietnam is also experiencing climate-related disruptions. These long-term changes are reducing the availability of green coffee and putting upward pressure on prices.

Supply Chain Challenges

Beyond climate-related issues, logistical disruptions have also contributed to rising costs. Increased container freight costs, port congestion, and shipping delays have made it more difficult and expensive to transport coffee beans worldwide. This supply chain bottleneck is further intensifying the shortage of readily available green coffee. 

Increasing Global Demand

The global appetite for coffee continues to grow, with consumption rising in both traditional markets like the United States and emerging coffee-drinking nations. This sustained demand, combined with constrained supply, is exacerbating the price surge and creating a more competitive marketplace for green coffee buyers..

Market Implications

With no immediate relief in sight, the outlook for green coffee prices remains bullish in the near term. Unless there are major breakthroughs in climate adaptation strategies, reductions in global demand, or significant logistical improvements, high prices are expected to persist at all stages of the coffee chain and will have an effect on everybody from small roasteries to large supermarkets. .For coffee businesses, this means strategic sourcing and forward contracts may be key to navigating the volatile market. For consumers, it could mean preparing for even higher prices. At Django Coffee Co. we are exploring many options to keep our prices competative and are holding off a price rise until it's absolutley nessesary. We wanted to let you know of the very worrying times ahead for the coffee industry and will keep you posted of any updates.