The recent US consumer price index (CPI) shows that the amount of consumers who have to pay for roasted coffee has increased by 2.5% in January 2025 compared to the same period last year. Notably, the price of instant coffee soared to 7.1%.
A global coffee buyer shared, although they have not increased prices, they have no choice but to consider increasing coffee prices in the medium term.
Mr. Andrea Illy, President of Illycaffe, pointed out that climate issues in the world’s leading coffee production and exporting countries, including Vietnam and Brazil, where adverse weather conditions affected the adverse weather. Season. Brazil has spent the hottest year in history in 2024, with a record number of forest fires affecting Arabica coffee and pushing the price up. The US imports the second largest amount of coffee in the world, only after the European Union, with the main supply from Brazil, Colombia and Vietnam.
Mr. Illy said there was no choice but to increase prices. Other companies are also considering increasing prices. The financial director of Keurig Dr Pepper (KDP), Sudhanshu Priyadarshi, predicting coffee prices will continue to increase in 2025.
However, Ms. Rachel Ruggeri, Financial Director of Starbucks, said that not all commercial coffee buyers are greatly affected, because usually large retailers will buy in bulk in advance at least one one before one one. Five and close the price by term. Thanks to the general practices and risk prevention strategies, the impact of coffee prices compared to the same period last year is only moderate in the first quarter of 2025.
Part of the reason why instant coffee prices increased sharply in the CPI report is because the low cost of capital helps companies easily increase prices without shocking consumers. Supplied coffee uses Robusta coffee, a lower -class coffee bean than Arabica, which is used for restaurant chain coffee. The Han drought situation in Vietnam in 2024 has affected the production of Robusta coffee, causing the price to increase 60% in the past year.
The increasing cost of transportation and labor has also put pressure on the instant coffee market.
