Rising Coffee Prices in 2025: A Global Phenomenon
Coffee Production and Prices
Coffee is one of the most widely consumed beverages in the world, with a global production volume of 160 million bags in 2020. The coffee trade is a complex and global phenomenon, with different countries playing a significant role in its production and trade. Brazil and Vietnam are the world’s largest coffee producers, accounting for 70% and 30% of global production, respectively. Arabica and Robusta are the two main coffee species, with Arabica accounting for 70% of global production.
Weather Conditions and Coffee Harvest
Unfavourable weather conditions in Brazil and Vietnam, the world’s largest coffee producers, are expected to impact the harvest in 2025. Drought problems in Brazil and typhoons and rare rains in Vietnam are likely to reduce the coffee harvest, leading to a rise in prices. As a result, coffee prices are expected to rise by 20-25% in 2025.
Russian Coffee Market
Russia is one of the world’s largest coffee consumers, but it is not a major producer of coffee. The Russian coffee market is fully dependent on imports, making it vulnerable to global price fluctuations. The Russian ruble’s exchange rate against the US dollar also affects the cost of coffee, making it more expensive for Russian consumers.
Global Coffee Prices
The global coffee market has been experiencing a surge in prices due to a combination of factors, including unfavourable weather conditions and supply chain disruptions. The exchange price of coffee beans continued to break multi-year records this week, with prices of January futures for Robusta coffee rising above US$5,500 per tonne, the level that has not been seen since at least the beginning of 2008. The price of Arabica rose above US$7,300 per tonne, a record since 1977.
Conclusion
In conclusion, the rising prices of coffee in 2025 are a global phenomenon, driven by unfavourable weather conditions in Brazil and Vietnam, the world’s largest coffee producers. The Russian coffee market, heavily dependent on imports, is expected to face significant price increases, making coffee more expensive for Russian consumers.
Frequently Asked Questions
Q: What is the expected rise in coffee prices in 2025?
A: Coffee prices are expected to rise by 20-25% in 2025.
Q: What are the main factors driving the rise in coffee prices?
A: Unfavourable weather conditions in Brazil and Vietnam, the world’s largest coffee producers, are the main drivers of the rise in coffee prices.
Q: Is Russia a major coffee producer?
A: No, Russia is not a major coffee producer and relies heavily on imports.
Q: What is the impact of the US dollar exchange rate on coffee prices?
A: The US dollar exchange rate has a negative impact on coffee prices, making it more expensive for Russian consumers.