Coffee enthusiasts should brace themselves for rising prices as global coffee commodity costs surge. Arabica beans, the most popular among producers, reached $US3.44 for 0.45kg recently, marking an 80% increase this year. Similarly, Robusta bean prices have also soared following a challenging harvest season.
The global coffee supply appears threatened due to adverse weather conditions affecting the world’s leading producers, Brazil and Vietnam. Brazil recently faced its worst drought in nearly 70 years, followed by excessive rains, which has raised concerns about the quality and quantity of the upcoming harvest. Vietnam, the top producer of Robusta beans, also experienced similar weather challenges this season.
Coffee companies are now considering increasing retail prices as many can no longer absorb the heightened costs. According to Vinh Nguyen, CEO of Tuan Loc Commodities, major brands like Nestlé and JDE Peet are contemplating price hikes in supermarkets within the first quarter of 2025.
Interestingly, 7-Eleven reported a sale of an additional 50,000 cups of coffee weekly, highlighting the continued demand for affordable brews. With 7-Eleven’s coffee priced from $2—significantly lower than local cafés—a daily coffee drinker could save over $1,000 annually by opting for servo coffee.