Global coffee prices have hit record highs, with Arabica trading at $3.48 per pound on the Intercontinental Exchange on Tuesday, marking a 40% surge in three months and a 79% increase year-over-year.
The spike is driven by multiple factors, including climate-related supply shortages and global trade uncertainties. Brazil, the world’s largest Arabica producer, has faced prolonged drought, forcing analysts at Volcafe to slash their 2025 and 2026 production forecasts by nearly 11 million bags.
“The rising coffee prices are part of a larger, global challenge driven by climate change, economic pressures, and geopolitical uncertainty,” said Yannis Apostolopoulos, CEO of the Specialty Coffee Association (SCA).
Concerns over trade disruptions have added to market instability. Uncertainty over U.S.-Colombia trade relations, following a tariff threat by former U.S. President Donald Trump, briefly rattled coffee markets.
Retailers and roasters expect higher costs to reach consumers soon. “These prices will come down to the consumer in the next three to six months,” said Heather Perry, CEO of Klatch Coffee.
While consumer demand remains strong, analysts warn that continued supply disruptions and market volatility could push prices even higher in the coming months.
