Coffee Price Hike: Coffee Witnesses 80 Percent Surge in Prices, Know Potential Reason

Coffee Price: The recent increase in worldwide coffee costs has caused worry among coffee connoisseurs around the world. On Tuesday, the price of Arabica beans surpassed $3.44 per pound, representing an 80% rise this year. Similarly, Robusta bean prices reached all-time highs in September. This increase is mostly due to severe weather conditions in major coffee producing countries such as Brazil and Vietnam. Brazil endured its worst drought in 70 years between August and September, followed by strong rains in October that destroyed coffee plant blooms, prompting concerns about crop failure. Similar weather issues in Vietnam have reduced the supply of Robusta beans, exacerbating worldwide shortages.

Coffee Price Hike Effect

Coffee’s rising pricing have repercussions beyond its standing as a popular beverage. Coffee, the second most traded commodity after crude oil, is in high demand, particularly in emerging economies such as China, where consumption has more than doubled in the last decade. This rising demand, along with supply disruptions, foreshadows a difficult period for consumers and producers alike. With coffee prices at all-time highs, the global market is getting a sharp reminder of the vulnerabilities in agricultural supply chains caused by climate change. The entire impact of this price increase on customers will take time to play out, but for the time being, more expensive coffee looks to be the norm.