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Global coffee prices surge as climate shocks, tariffs, and shipping disruptions reshape supply chains
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Global coffee prices surge as climate shocks, tariffs, and shipping disruptions reshape supply chains
A convergence of climate events, US tariffs, and Red Sea shipping disruptions has driven coffee prices to multi-decade highs, reshaping global supply chains and raising consumer costs.
- Arabica and robusta bean prices hit multi-decade highs in 2025, with arabica peaking above $4 per pound and robusta at $2.59 per pound.
- In November 2025, US President Donald Trump signed an executive order exempting coffee beans from his tariffs after US roasted coffee prices surged 17% in the year to March.
- Vietnam suffered its worst drought in decades in early 2024, followed by a typhoon during harvest, while Brazil's arabica crop is still recovering from a 2021 frost.
- Giuseppe Lavazza, chairman of Lavazza, said the past few years have been an "unprecedented time in terms of complexity and troubles" and predicted prices will not drop for at least two years.
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