INTHEBLACK July 2025 - Magazine - Page 43
The global coffee market
is experiencing record-high
prices in 2025.
Consumers can expect
an increase in their coffee
prices over the next 12 months.
New coffee majors, such
as China’s Luckin Coffee,
are creating greater
demand challenges.
Storm in a
coffee cup
A daily cappuccino is likely to cost significantly more over the next
six to 12 months as parched plantations, pirates and a predilection
for a stronger brew all take their toll.
Words Chris Sheedy
IN 2025, COFFEE-BEAN IMPORTERS
were expecting a bumper crop from Brazil,
where more than one-third of the global
supply of coffee beans is grown annually.
Demand for coffee beans had already begun
to outstrip supply, with major players and
new consumption territories adding to the
challenge. A Brazilian batch would help
with increasing demand.
Instead, at the end of 2024, a drought
period took hold in Brazil, causing
a substantial fall in production. Major
producer Vietnam had just suffered similar
drought challenges. And the coffee supply
chain in Ethiopia, another top-five growing
country, faced massive risk as it shipped
through the Gulf of Aden, a waterway
plagued by Somalian piracy and attacks
by the Yemeni Houthis.
So, a perfect storm brewed. Its intensity
in Australia boosted by the fact that coffee
tastes have moved towards double shots
instead of single espressos.
THE BEAN’S JOURNEY
How do coffee economics work?
Stephen Bannister CPA, general manager
at green coffee importer Cofi-Com Trading,
intheblack.cpaaustralia.com.au 43
