the changing face of the coffee market
Like many industries, the coffee industry is going through a period of change right now. Extreme weather is affecting supply, while global demand continues to rise.
At the same time, economic shifts at the production level—impacting farmers, their suppliers, and the communities they work in—are also playing a role.
So, what’s happening in the coffee industry, and why are prices rising?
the coffee supply shortage 📉
For the past two years, global coffee consumption has outpaced production, leading to depleted reserves. The world’s largest coffee producers—Brazil and Vietnam—are experiencing major declines in output, caused by:
- severe droughts damaging crops
- unfavourable weather conditions preventing trees from flowering
the impact on coffee prices 📈
With a global supply deficit, the market has reached a 47-year high, pushing the cost of green coffee beans up. Historically, Brazil's surplus production kept prices down, but with lower yields, the cost of buying green coffee has gone up for roasters across Europe.
rising costs at every stage 🚜
Beyond the raw product, rising operational costs are also affecting the industry.
- labour costs in coffee-growing regions are increasing as living conditions improve
- fertilisers, fuel, and the cost of processing coffee has surged
- currency fluctuations (USD vs. local currencies) are discouraging producers from selling at lower prices
These combined factors directly impact what it costs to produce, pick, ship, roast, package, and distribute specialty coffee, which is why prices are adjusting across the industry.
what this means for coffee drinkers ☕️
Many coffee roasters and cafés are gradually increasing prices to reflect the market. While supply chain issues persist, we do not expect a complete shortage—just a higher price point for premium specialty coffee for roasters, cafés, and coffee drinkers alike.
While the coffee industry evolves, pricing adjustments reflect more than just market shifts—they ultimately secure better livelihoods for farmers and producers (arguably the most important cog in the coffee supply chain) who give so much to bring us quality green coffee.
people and the planet 🌱
As a Certified B Corp, we are (and have been) committed to supporting these farmers and producers. Our support for La Morena and Union San Pedro are just two examples of this.
As well as being the right thing to do, it's fundamental to the B Corp movement where the 'B' in B Corp refers to 'Benefit for all', reflecting support for the livelihoods of all our suppliers and stakeholders.
To protect the future of specialty coffee, it is crucial that we all make the necessary adjustments to ensure a stable and value driven supply chain.
