Coffee Prices Are Changing — Here’s What You Need to Know
Posted by Ferg on 10th Feb 2025
If you've been following the news over the past six months, you may have noticed more and more stories about the surging cost of coffee globally. While it's only recently hit the mainstream media, those in the industry have been navigating an increasingly volatile market for the past two years.
Lately, things have really escalated, with prices repeatedly reaching record highs.
The ICO Composite Indicator Price (I-CIP) report.
The December 2024 I-CIP shows an increase of 70.5% compared to the 2023 I-CIP.
WHY ARE COFFEE PRICES RISING?
A perfect storm of factors is driving coffee prices through the roof:
Weather disruptions: Droughts and extreme weather events have hit Brazil and Vietnam—two of the world’s biggest coffee producers—hard, slashing production. Whether this is an unlucky streak or an early sign of a shifting climate, one thing is clear: supply isn’t keeping up with demand. In fact, demand is still growing.
Supply chain costs: Transport, shipping, and freight costs have surged globally in the post-COVID era. It’s now more expensive than ever to move coffee from farm to port to roaster.
Currency and inflation: The weak Australian dollar has made importing coffee even pricier, as coffee is traded globally in USD.
Market speculation: Coffee is a traded commodity on the futures market, and many traders bought big following poor harvest results in Brazil and Vietnam. This has driven prices even higher, beyond what supply and demand alone would dictate.
THE CRYSTAL BALL - WHAT'S AHEAD?
Short answer? No one knows. We’re in uncharted territory. What we do know is that volatility will likely continue throughout 2025, supply chain costs will remain high, and the Australian dollar is expected to stay weak, meaning coffee prices aren’t coming down anytime soon.
HOW WILL THIS AFFECT YOU?
One thing that won’t change is our unwavering commitment to sourcing and roasting the best coffee we can find. To stay true to this ethos, we will need to adjust our prices accordingly.
We’ve built strong relationships with our import partners and producer groups over many years, and those connections give us the foundation we need to navigate these challenges. The result? The coffee you love to brew will remain just as delicious, consistent, and high-quality as ever.
It’s thanks to you that we get to do what we do, your love of exceptional coffee is what drives us, and we appreciate your continued support throughout 2025 and beyond.
NEWS ARTICLES
The coffee pricing conundrum - BeanScene, December 2024.
Why are coffee prices going up, and will a flat white really cost $10 or more as a result? - The Guardian, January 2025.
Flat white coffee price likely to skyrocket, no matter where you live - ABC January 2025.
Wake up and smell the coffee: rising food prices show destabilising impact of climate crisis - The Guardian December 2024.
Why Coffee Could Get A Lot More Expensive In 2025 - Yahoo December 2024.
Coffee prices soar 54% in retail and are set to climb higher by 2025 - Valor Argribusiness December 2024.