Category: News

Global coffee prices surged nearly 40% in 2024 due to supply disruptions caused by adverse weather conditions in key producing countries. According to a new study by the Food and Agriculture Organization of the United Nations (FAO), coffee prices reached a multi-year high, rising by 38.8% compared to the previous year’s average.

Sharp Increase in Arabica and Robusta Prices

According to FAO’s market analysis, in December 2024, Arabica—the most sought-after coffee variety—was 58% more expensive than a year earlier. Meanwhile, Robusta, primarily used for instant coffee production, saw a 70% price hike. This resulted in the smallest price gap between the two major coffee varieties since the mid-1990s.

Outlook for 2025: Prices May Continue to Rise

FAO experts predict that export coffee prices may continue to rise in 2025 if major producing regions face further supply reductions.

Key factors contributing to the price surge:

• Vietnam’s Export Decline: Prolonged drought led to a 20% drop in coffee production, with exports shrinking by 10% for the second consecutive year.
• Reduced Output in Indonesia: Excessive rainfall in 2023 damaged coffee cherries, causing a 16.5% decline in production and a 23% decrease in exports.
• Weather Conditions in Brazil: Hot and dry weather prompted a downward revision of coffee production forecasts. Instead of the expected 5.5% growth, production is now projected to shrink by 1.6%.

Additional Factors: Rising Transportation Costs

Beyond supply constraints, increasing transportation costs also contributed to rising coffee prices. In December 2024, this led to higher consumer coffee prices:

• In the U.S. – up 6.6%.
• In the European Union – up 3.75%.

FAO: High Prices Should Encourage Industry Development

“High coffee prices should serve as an incentive for investment in technology, research, and sustainable agricultural practices, which are crucial for small-scale farmers,” said Boubaker Ben-Belhassen, Director of the FAO Markets and Trade Division. He emphasized that climate change has long-term implications for coffee production.

FAO supports coffee-producing nations by helping farmers implement climate-resilient cultivation methods that also promote biodiversity restoration.

Global Coffee Market: Key Facts

• Leading Producers: Brazil and Vietnam account for nearly 50% of global coffee production.
• Role of Small Farmers: Approximately 80% of the world’s coffee is produced by smallholder farms.
• Economic Significance:
  • Global coffee production is valued at over $20 billion annually.
  • The global coffee trade exceeds $25 billion per year.
  • In 2023, global coffee production reached 11 million tons.
  • The largest coffee importers: the European Union and the U.S.
  • The coffee industry generates over $200 billion annually.

FAO emphasizes the importance of market transparency and international cooperation to ensure the sustainable growth of the global coffee sector and protect the livelihoods of millions of small-scale farmers worldwide.

Coffee enthusiasts and industry professionals are gearing up for the much-anticipated Melbourne International Coffee Expo (MICE) 2025, set to take place from March 20 to 22 at the Melbourne Convention and Exhibition Centre (MCEC). With less than a week to go, organizers are urging attendees to secure their pre-event pricing before it’s too late.

As one of the largest and most influential coffee expos in the Asia-Pacific region, MICE 2025 will bring together coffee roasters, baristas, equipment manufacturers, and industry leaders for three days of exhibitions, educational sessions, and networking opportunities. Attendees who purchase their tickets now can benefit from discounted prices and avoid long queues at the venue.

Ticketing Options

MICE 2025 offers two ticket categories, catering to both casual coffee lovers and serious industry professionals:

• All Day Access – $43.95 per day
  • Full-day access to the exhibition floor and education series.
  • Live demonstrations and interactive coffee experiences.
  • Entry to the Melbourne Coffee Festival featuring bars, DJs, and entertainment.
• Access All Areas – $78.95 (Full Event Access)
  • Access to the exhibition floor and educational sessions for all three days.
  • Exclusive access to demonstration stages and interactive experiences.
  • Entry to the Melbourne Coffee Festival and the official MICE After-Party, with a drinks voucher included.

For those seeking in-depth industry insights, ticket upgrades are available to include access to the prestigious GCR Leaders Symposium 2025, where global coffee experts will discuss the latest market trends and innovations.

A Prime Location for a Global Event

The Melbourne Convention and Exhibition Centre (MCEC) is centrally located, offering easy access via public transport, including trams, buses, and trains. For attendees arriving by air, the venue is a convenient 30-minute drive from Melbourne International Airport.

Why Attend MICE 2025?

MICE has established itself as the world’s premier coffee trade event, showcasing the latest in coffee technology, roasting techniques, and market trends. Industry leaders, café owners, and coffee aficionados alike will find unparalleled opportunities for networking and business growth.

With limited time left to secure pre-event ticket pricing, coffee professionals and enthusiasts are encouraged to act fast and lock in their access before prices increase.

Don’t miss your chance to be part of the future of coffee. Secure your tickets now and get ready for an unforgettable coffee experience at MICE 2025.

Get Your Tickets Here

Coffee industry leaders across North America are grappling with potential trade disruptions as uncertainty looms over tariffs on coffee imports, particularly from South America. The escalating trade tensions initiated by former U.S. President Donald Trump’s administration have raised concerns about the impact on roasting, packaging, and trading operations spanning the United States, Canada, and Mexico.

Major coffee companies strategically operate facilities across borders to streamline supply chains and optimize production. However, potential U.S. tariffs—and any retaliatory measures from trade partners—could force businesses to rethink their operations.

Mexico, a key supplier of high-quality green coffee to the U.S. and Canada, also exports significant quantities of instant coffee. The CEO of one of the region’s largest coffee companies, who requested anonymity due to the sensitivity of the issue, emphasized the deep integration between U.S. and Canadian coffee operations.

“Many roasting and retail supply operations function across the U.S.-Canada border. Any shifts in the political or tariff landscape will require strategic adjustments,” the executive stated.

Starbucks (SBUX.O), for example, roasts coffee for its Canadian stores in the United States. Addressing potential trade disruptions, Starbucks Chief Executive Brian Niccol told shareholders, “As the political environment and tariff structures evolve, we will adapt to navigate the regulatory conditions effectively.”

Although the U.S. has postponed 25% tariffs on most goods from Canada and Mexico, coffee appears to be largely excluded from the U.S.-Mexico-Canada Agreement (USMCA). Some coffee traders are already incorporating tariff clauses into contracts to mitigate risk.

“We’ve added a clause requiring buyers to cover an additional 25% tariff if it applies. Most traders are following suit,” said Jeff Bernstein, managing director of Quebec-based coffee trading firm RGC.

Bernstein noted that one client in Oakland, California, recently accepted these terms for a coffee shipment from Mexico.

Industry leaders fear that U.S. tariffs could soon extend to South American coffee imports, with Brazil— the world’s largest coffee producer—potentially in the spotlight.

“Trump mentioned Brazil in one of his tariff speeches, albeit briefly. It’s definitely on the radar,” said Andre Acosta, director of Commodity Solutions Latam at brokerage firm Marex.

Brazilian Vice President Geraldo Alckmin recently met with U.S. Secretary of Commerce Howard Lutnick to discuss trade policies, signaling early-stage consultations on potential tariffs.

Bill Murray, president of the U.S. National Coffee Association, is calling for coffee to be exempt from additional tariffs, warning of widespread economic consequences.

“Tariffs on coffee would impact three in four Americans. Many believe exports benefit the U.S. economy, but the reality is that we cannot grow coffee domestically,” Murray stated.

Meanwhile, global coffee giant Nestlé (NESN.S) has been heavily investing in Mexico’s instant coffee sector, working with thousands of farmers to boost robusta coffee production. The company declined to comment on the potential impact of tariffs.

As trade tensions persist, the coffee industry remains on edge, bracing for possible policy shifts that could reshape North America’s coffee supply chain and pricing structures.

The Financial Times has published a report on the “Caramel Apple Pie Latte”, a coffee drink that is gaining popularity in specialty cafés. This beverage blends the rich flavors of caramelized apples, warm spices, and bold coffee, offering a unique experience for coffee enthusiasts. It is part of a growing trend of innovative coffee creations that go beyond traditional offerings.

The Origins and Evolution of the Drink

The Caramel Apple Pie Latte draws inspiration from North American cuisine, where apple pie with caramel is a beloved dessert, especially in the United States and Canada during the autumn season. In the early 2000s, cafés began experimenting with incorporating these flavors into coffee, influenced by the success of the pumpkin spice latte, which was introduced by a major coffee chain in 2003 and became a seasonal favorite.

Initially introduced as a limited-time offering, the overwhelming demand encouraged specialty coffee shops to make it a permanent menu item. The drink is crafted using slow-cooked caramelized apples, cinnamon, nutmeg, milk, and high-quality coffee, resulting in a warm and indulgent flavor profile.

A Wave of Innovative Coffee Flavors

This trend is not limited to one café. Around the world, specialty coffee shops are embracing bold new flavors. In London, some cafés serve cold brew infused with hazelnut and cardamom, while others in Brooklyn experiment with pear syrup and brown sugar lattes. In Los Angeles, a café offers spiced cold brew with cinnamon, chili, and sweetened cream, and in Belfast, a local café features a honey latte made with locally sourced Irish honey.

In Belfast, the café Established takes the concept even further with its Caramel Apple Pie Latte, topped with a spiced crumble, making it as much a dessert as it is a coffee drink.

Commitment to Quality Ingredients

Despite their playful nature, these drinks maintain a strong emphasis on quality. Cloe de la Vega, co-founder of a London-based specialty café, states that their syrups are handcrafted rather than store-bought, ensuring superior taste and authenticity. At Doubloons, a single batch of cherry syrup takes three hours to perfect, showcasing the dedication to craft. Similarly, Ivana Somorai, co-founder of Rhythm Zero, spent considerable time fine-tuning the maple sea-salt latte to achieve the ideal balance of sweetness and saltiness.

Coffee as a Social Experience

This wave of inventive coffee drinks also aligns with the increasing popularity of low- and non-alcoholic beverages. Many coffee shops have evolved into social hubs, providing a relaxed alternative to bars and restaurants. Some, like Abuelo and Maru, offer refined interior designs that create a sophisticated ambiance, while Rhythm Zero features black marble accents and modern seating, giving it a high-end lounge feel while maintaining a cozy atmosphere.

Registration is now officially open for World of Coffee Jakarta 2025, the premier event for coffee professionals and enthusiasts in Asia. Set to take place at the Jakarta International Convention Center (JICC) from May 15 to 17, 2025, this highly anticipated gathering offers a unique opportunity for roasters, baristas, producers, and entrepreneurs to connect with the rapidly growing coffee industry in one of the world’s largest coffee-producing nations.

A Gateway to Asia’s Coffee Culture and Innovation

World of Coffee Jakarta 2025 will feature a vibrant trade show floor, where leading brands and innovators will showcase the latest advancements in coffee technology, roasting, and brewing. The event also includes the Roaster Village, highlighting specialty coffee from across the region, and the SCA Lecture Series, where industry experts will share valuable insights into emerging trends shaping the future of coffee.

One of the major highlights of the event will be the World Brewers Cup 2025, an international competition that celebrates the art of manual brewing, bringing together top baristas from around the globe to showcase their expertise.

Registration & Ticket Options

Attendees can take advantage of early bird pricing until April 27, 2025:

• 1-day pass: $10
• 3-day pass: $20

Regular registration will be available from April 28 to May 11 online and on-site from May 15 to 17 at:

• 1-day pass: $15
• 3-day pass: $30

Note: All ticket sales are final and non-refundable.

Why Attend?

World of Coffee Jakarta is the ultimate platform for coffee professionals to explore Asia’s thriving coffee scene, discover new market opportunities, and engage with industry leaders. Whether you’re looking to expand your business, showcase your brand, or simply experience Jakarta’s rich coffee heritage, this event is your gateway to the heart of the Asian coffee market.

📅 Don’t miss your chance to be part of Asia’s most exciting coffee event!

🔗 Register now: Click here

ROR Coffee Solutions, an Emirati-owned specialty coffee company, has secured a landmark AED 30 million investment to drive its expansion and innovation strategy over the next five years. The funding will support the company’s growth across the MENA region and Europe, reinforcing its commitment to sustainability, ethical sourcing, and technological advancements in specialty coffee.

As global demand for premium, responsibly sourced coffee continues to rise, ROR Coffee Solutions aims to enhance its market position through strategic investments in infrastructure, advanced roasting technology, and workforce development. The company plans to expand its presence in key markets, particularly Saudi Arabia and select European countries, while diversifying its business portfolio to include corporate coffee solutions, premium retail offerings, and event-driven experiences.

The investment will also enable the establishment of state-of-the-art roasting and production facilities designed to improve efficiency and consistency. Additionally, ROR Coffee Solutions is set to develop operational hubs and training centers across its target regions, providing barista training, quality assurance programs, and consumer education initiatives to elevate industry expertise.

Sustainability remains a central pillar of the company’s expansion strategy, with initiatives focused on eco-friendly packaging, waste reduction, and the introduction of electric delivery fleets to minimize carbon emissions. The company is also strengthening direct trade relationships with coffee farms to support ethical sourcing and sustainable agricultural practices. Plans to implement a coffee packaging recycling program and achieve carbon-neutral operations further underscore its environmental responsibility.

Beyond infrastructure and sustainability, ROR Coffee Solutions is expanding its collaborations with global coffee farms and leading equipment manufacturers to enhance its product offerings. A significant portion of the investment will be allocated to workforce growth, creating new roles in operations, sales, and training. To attract and retain top industry talent, the company will introduce international barista certification programs and career development initiatives, positioning itself as a leader in specialty coffee expertise.

Aaron Marshall, General Manager of ROR Coffee Solutions, highlighted the significance of this investment, stating: “This marks a defining moment for ROR Coffee Solutions and the future of specialty coffee in the region. Our vision goes beyond delivering exceptional coffee—we are creating an ecosystem where innovation, sustainability, and craftsmanship thrive. By expanding into new markets, integrating advanced roasting technology, and reinforcing ethical sourcing practices, we are not just elevating coffee quality but also empowering businesses and professionals to grow alongside us. This is more than expansion; it’s about reshaping how coffee is sourced, brewed, and experienced.”

With a strong focus on market expansion, customer experience enhancement, and sustainable business practices, ROR Coffee Solutions is poised to set new industry standards. Through its ambitious growth strategy, the company aims to redefine the specialty coffee sector, ensuring that businesses and consumers alike have access to world-class coffee solutions.

The global coffee bean market is projected to grow significantly, reaching $61.6 billion by 2033, up from $34.89 billion in 2024, according to the latest report by Renub Research. The market is expected to expand at a CAGR of 6.52% from 2025 to 2033, driven by increasing global coffee consumption, the rising popularity of specialty coffee, and expanding coffee culture worldwide.

Key Drivers of Growth

1. Surge in Global Coffee Consumption
   The growing demand for coffee, particularly in emerging markets across Asia and Africa, is fueling market expansion. Lifestyle shifts and an increasing preference for premium coffee experiences have led to a rise in specialty coffee consumption.

2. Specialty Coffee on the Rise
   Consumers are increasingly seeking high-quality, single-origin coffee with distinct flavor profiles. The third-wave coffee movement, which emphasizes artisanal brewing and direct trade, continues to shape market dynamics.

3. Sustainability and Innovation in Coffee Processing
   Advances in coffee processing, such as improved wet and dry processing techniques, are enhancing bean quality. Additionally, eco-conscious consumers are driving demand for sustainable and ethically sourced coffee, including fair trade and organic-certified beans.

Challenges Facing the Industry

• Climate Change Impact
  Extreme weather conditions, including droughts and erratic rainfall, threaten coffee production in key regions like Central and South America. These disruptions may affect crop yields, impact pricing, and pose long-term challenges for farmers.

• Market Volatility and Price Fluctuations
  The coffee industry remains vulnerable to fluctuating market prices, driven by supply chain issues, labor costs, and currency exchange rates. Price instability makes income predictability difficult for farmers.

Regional Market Insights

• European Union: A Key Consumption Hub
  Europe remains a dominant market for coffee consumption, with countries like Italy, Germany, and France driving demand. Specialty coffee, sustainability initiatives, and evolving consumer preferences continue to shape the EU coffee sector.

• Arabica vs. Robusta Production Trends
  Brazil, Colombia, and Honduras are leading Arabica coffee producers, while Vietnam dominates Robusta production, supplying nearly 40% of the global market. The increasing demand for high-caffeine Robusta beans is benefiting emerging coffee markets.

• U.S. Coffee Imports Continue to Rise
  The United States remains one of the largest coffee importers, primarily sourcing Arabica beans from Brazil, Colombia, and Honduras. The shift toward premium, ethically sourced coffee is reshaping the U.S. market.

• India’s Growing Role in Coffee Exports
  India has strengthened its position in the roast and ground coffee export market, supplying major regions including Europe, the Middle East, and the U.S. Indian coffee, known for its distinct flavor profiles, is increasingly sought after in specialty coffee markets.

Market Forecast and Industry Players

The report highlights that leading global coffee companies such as Starbucks, Nescafé, The Kraft Heinz Company, J.M. Smucker, Coca-Cola, Dutch Bros, and JDE Peet’s N.V. are influencing industry trends through innovation, expansion, and sustainability efforts.

With specialty coffee gaining traction and sustainability initiatives becoming a priority, the coffee bean market is poised for sustained growth over the next decade.

Explore the latest insights on the global coffee market trends [here].

The third edition of CoffeeFest Madrid concluded with a record-breaking attendance of over 43,000 visitors, reinforcing its position as one of Europe’s leading coffee industry events. Held from February 15 to 17, the festival brought together coffee professionals, business leaders, and enthusiasts, offering a platform for networking, competitions, and industry insights.

Strong Industry Representation

The event attracted a diverse audience, including:

• 39% coffee consumers and enthusiasts
• 18% specialty coffee shop owners
• 16% hospitality professionals
• 15% representatives of coffee-related businesses
• 6% coffee roasters
• 6% importers and distributors

With attendees from Madrid, across Spain, and international markets, the festival highlighted the growing demand for specialty coffee and the industry’s ongoing expansion.

Event Highlights

This year’s CoffeeFest featured:
The World’s 100 Best Coffee Shops Gala, celebrating top coffee destinations.
The first European Green Coffee Auction, in partnership with the Caucá Coffee Committee and Supra Café.
Two SCA Spain championships, showcasing barista excellence.
The CoffeeFest Madrid Summit, focusing on trends, innovation, and sustainability.

Key Figures from CoffeeFest 2025

43,000 visitors
149 exhibitors
52 national and international speakers
3 conference stages
2 cupping zones
3 competition areas

Looking Ahead: CoffeeFest 2026 Announced

Following this year’s success, CoffeeFest Madrid 2026 is scheduled for February 14-16, 2026. Organizers aim to expand the event further, bringing more global industry leaders, innovative concepts, and specialty coffee pioneers to Madrid.

The Global Coffee Market Report for February 2025, published by the International Coffee Organization (ICO), reveals a major shift in global coffee exports. Arabica coffee has gained a larger market share, while Robusta faces a sharp decline in exports.

Historic Decline in Robusta Exports

According to the report, Arabica now accounts for 65.4% of total green coffee exports, up from 60.5% in the previous year. This shift is primarily due to the continuous drop in Robusta exports, particularly from Vietnam, the world’s largest producer of this variety.

Vietnam’s Robusta exports plunged by 43.8% in January 2025, marking the lowest January export level in six years. The ICO attributes this decline to supply shortages, financing constraints, and logistical challenges affecting shipments.

Global Coffee Prices Reach Record Highs

This decline in Robusta supply comes at a time when global coffee prices are reaching unprecedented levels. The ICO Composite Indicator Price (I-CIP) surged to 354.32 US cents per pound in February 2025, reflecting a 14.3% increase from January, making it the highest monthly average on record.

The report also highlights significant price increases across different coffee categories:

• Colombian Milds rose 16.7% to 410.64 US cents per pound.
• Brazilian Naturals increased by 18.3% to 401.10 US cents per pound.
• Robusta prices climbed 7.2% to 263.08 US cents per pound, despite supply challenges.

The ICO also noted rising market volatility, driven by economic uncertainty, higher trade financing costs, and shifting demand patterns.

The Impact of Robusta’s Decline on the Global Coffee Market

The sharp decline in Robusta exports has forced coffee buyers to reevaluate their sourcing strategies, leading to greater dependence on Arabica. As a result:

• Arabica producers are experiencing stronger demand, driving prices even higher.
• Roasters may have to absorb higher costs, especially for blends that traditionally rely on Robusta.
• Consumers may see higher prices for espresso and instant coffee, both of which heavily depend on Robusta.

Meanwhile, some coffee-producing countries outside Vietnam, such as Indonesia and Uganda, have ramped up Robusta exports in an effort to compensate for the shortfall. However, experts warn that these increases may not be sufficient to fully offset Vietnam’s declining supply, keeping the market under sustained pressure.

What’s Next for the Global Coffee Industry?

As Arabica’s dominance continues to grow and Robusta faces long-term supply risks, the coffee industry is entering a new phase of market realignment. Analysts are closely watching key developments, including:

• Will Vietnam recover its Robusta exports, or will other nations fill the gap?
• How will coffee roasters adjust their strategies in response to these changes?
• Could Arabica’s growing dominance lead to higher prices for premium coffee?

The global coffee market stands at a critical juncture, with new trade patterns emerging and prices reaching historic highs. The coming months will be crucial in determining the long-term impact of these shifts.