World coffee costs 2025

Over the past year, the price of green coffee - unroasted coffee beans has surged. The last quarter of 2024, prices hit a 47-year high and they have since climbed another 20%. The coffee industry operates on a global pricing system, often referred to as the C Market, which determines the cost of most of the world’s coffee. The C Market has risen for several reasons.

*Dynamics of supply and demand.

*Two of the worlds largest coffee producers Brazil and Vietnam had reduced harvests due to low production yields & poor harvests resulting in reduction of global supply with more buyers purchasing from other countries with less yield looking for available inventory creating a worldwide shortage.

*Market speculators have capitalized on the volatility, further exacerbating price fluctuations.

*Other costs increases:

• Packaging: Biotré packaging & high-quality packaging materials have increased significantly.

• Shipping: Import costs fluctuate with fuel prices & global trade conditions.

• Supply chain issues: Disruptions in the supply chain in the Red Sea are impacting availability and transportation shipping costs in African coffee-primarily Ethiopian origined coffee.

• Labor & Tariffs: Economic shifts, inflation, currency fluctuations (coffee producing countries), and tariff regulations are impacting the cost of bringing coffee to the shelf and shop.