"By 2024, the price of arabica beans, the most widely used bean variety, rose nearly 70 percent."
The main reasons behind this price increase were:
Climate change and weather effects:
Extreme droughts and frosts in major coffee-producing countries such as Brazil and Vietnam led to lower harvests and a decrease in supply.
Logistical problems:
High fuel prices, shipping delays and disruptions in the global supply chain drove up transportation costs.
New regulations:
European sustainability requirements and anti-deforestation measures imposed stricter requirements on importers, which imposed additional costs.
Looking ahead to 2025: further increases expected
Experts predict that coffee prices will continue to rise in 2025. Expectations are that prices could increase by another 20 to 30 percent, depending on harvest results and further logistical challenges. The price of arabica beans in particular remains vulnerable due to ongoing drought in South America and stricter regulations around sustainable production. In addition, currency exchange rates continue to play a role. For example, the Brazilian real has risen sharply against the U.S. dollar, driving up export prices.
For companies that want to be prepared for further price increases, it is important to make smart choices. Consider:
Choose all-in providers:
Work with suppliers who offer fixed prices for a longer period of time, such as one year. This gives a better price guarantee and provides more stability in costs.
Invest in sustainability:
Choose suppliers that work with sustainable coffee and comply with new regulations. This not only helps with cost control, but also strengthens your organization's image.
Commit to reliability:
Work with partners that are proven stable in their deliveries and service, so you have less risk of disruption.
Conclusion
Rising coffee prices are a challenge for the business market, but they also present opportunities to innovate and work more sustainably. By partnering with reliable suppliers, opting for all-in contracts and putting sustainability first, companies can control costs while contributing to a responsible coffee supply chain. With proper preparation, coffee will continue to be an important ingredient for successful business relationships in 2025.
Curious about our all-in coffee concept?
After reading this blog, are you curious about a coffee supplier with a unique all-in coffee concept? Stop by the CoffeeClick Experience Center and find out what we can do for your business.
Make a no-obligation appointment and experience CoffeeClick for yourself!
