Coffee prices at record height: Will Espresso become a luxury goods?

Coffee prices at record height: Will Espresso become a luxury goods?

Vienna, Österreich - Coffee prices reach historical highs and cause excitement for coffee lovers worldwide. As vol.at , the price for coffee has increased to the highest level since the 1970s. This price explosion can be attributed to several factors: a clear offer deficit due to lower harvest quantities, the increased demand from countries such as China and India, which are traditionally known for their tea consumption, as well as the growing challenges through climate change. The espresso price in Italy has risen by 20 % since 2021, which is an unmistakable sign of the changes on the coffee market for many consumers.

In addition to the harvest problems that affect many coffee producers worldwide, Coffeenness that not only the farmers suffer from the changed weather conditions. In Brazil, the hottest spring and summer have been experienced since 1949, which significantly affected the quality and quantity of the harvest. These circumstances have meant that only 20 percent of 54.8 million coffee bags collected met the high demands on Specialty Coffee. The increasing demand in Europe, especially in Germany, meets a dwindling offer, as about two million sacks in Brazilian ports are fixed for supply chains.

market conditions and future developments

Coffee prices could continue to rise, as both the costs in the entire supply chain and the demand increase. Due to the complexity of the coffee trade, whereby contracts are often concluded before harvesting, the uncertainty remains high. The planned EU regulation to avoid design also drives the compliance costs up, and speculation on the raw material markets does the rest to drive up the prices. According to forecasts, the price situation on the coffee market will remain uncertain, whereby the next harvests from Brazil will be decisive for further price development.