"The last several years have imposed significant strain on coffee supply chains, most notably in the form of climate-related issues - frost, fires, too much rain, not enough rain. What we're seeing in 2025 is the impact of these circumstances compounding, leaving us in a situation where the global supply of coffee is incredibly tight while reserve stocks are largely depleted.
The biggest contributing factors were severe droughts in Brazil and Vietnam - the largest exporters of coffee - which were intensified in recent months by market illiquidity. In simple terms, roasters around the world urgently need coffee, but market conditions can not sustain the amount of buying that would help alleviate near term supply needs.
What we are seeing in the longer term is a situation where, to satisfy the next two to three years of anticipated global demand, there is zero margin for error in the supply of coffee - implying that prices are likely to stay elevated for some time.
While coffee prices have reached all time nominal highs, this is not the first bull market the coffee industry has seen, and it is doubtful to be the last. We assure you we are working hard to weather this market—remaining steadfast in our commitment to responsible sourcing while working to ensure our offerings remain accessible."
Additional Resources:
Leave a comment
This site is protected by hCaptcha and the hCaptcha Privacy Policy and Terms of Service apply.