(kontumtv.vn) – Coffee futures prices have increased by more than 30% since the beginning of 2025, hovering near all-time highs. This “price storm” is starting to spread to consumers’ pockets.

Photo caption
Farmers harvest coffee in Espírito Santo, Brazil. Photo: AFP/TTXVN

The recently released US Consumer Price Index (CPI) report shows that the amount consumers paid for roasted coffee increased by 2.5% in January 2025 compared to the same period last year. Notably, the price of instant coffee skyrocketed by 7.1%.

A global coffee trader shared that although they have not increased prices yet, they have no choice but to consider increasing coffee prices in the medium term.

Mr. Andrea Illy, President of illycaffè, pointed out that climate problems in the world's leading coffee producing and exporting countries, including Vietnam and Brazil, where adverse weather conditions affect the crop.

Brazil experienced its hottest year on record in 2024, with a record number of wildfires affecting Arabica coffee and pushing prices up. The United States is the world’s second-largest coffee importer after the European Union, with supplies coming mainly from Brazil, Colombia and Vietnam.

Illy said he had no choice but to raise prices. Other companies are considering price increases as well. Keurig Dr Pepper (KDP) CFO Sudhanshu Priyadarshi predicted coffee prices will continue to rise through 2025.

However, not all commercial coffee buyers will be significantly impacted, as large retailers typically buy large quantities at least a year in advance and lock in prices using futures contracts, said Rachel Ruggeri, Starbucks’ chief financial officer. Thanks to common practices and hedging strategies, the year-over-year impact on coffee prices will be moderate in the first quarter of 2025.

Part of the reason instant coffee prices jumped so much in the CPI report is because the already low price makes it easy for companies to raise prices without shocking consumers. Instant coffee uses Robusta, a lower-grade bean than Arabica, the type used in chain restaurant coffee. Vietnam’s 2024 drought affected Robusta production, causing prices to rise 60% over the past year.

Rising transportation and labor costs have also put pressure on the instant coffee market.

Minh Hang/VNA (According to Yahoo Finance)