If you’ve noticed the price of your coffee increasing, you’re not alone! The price for Arabica beans, the world’s favourite variety – which is used in various products sold at Good Taste – spiked 18% in 2024. There are several factors contributing to this coffee price inflation.
One of the biggest reasons for increasing coffee prices is the impact of climate change. Coffee prices are soaring as periods of extreme heat and drought Brazil and Vietnam, the world’s two biggest coffee growers, threaten coffee production globally. These conditions are unfavourable for delicate crops like Coffee plants, which has seen Brazil producing just 34.4 million bags of the premium Arabica bean in the past season, this is down by about 11 million bags from a September estimate. Because of this, there is a lower supply of coffee beans meaning coffee roasters are having to pay higher prices than previously.
Inflation also results in increased cost of production for coffee growers. Whether it is the price of fertilizers, labour, or the energy required to process coffee – coffee farming has become increasingly costly. As a result, farmers and producers of coffee are having to pass this cost onto the consumer.
Unfortunately, these issues are not be going away anytime soon, meaning coffee prices could remain elevated for a while. The outlook for 2025-2026 is even worse than for the current season, in which Brazilian Arabica production is expected to be 43.3 million bags, resulting in a global deficit of 5.5 million bags. So unfortunately, this is likely to further increase the cost of your morning coffee.
