Why does your morning coffee cost more?

If you’ve recently been startled by the price of your favorite coffee, you’re not alone. What used to be a simple, comforting ritual is now starting to feel like a luxury. The reasons behind the price increases are complex, ranging from climate issues to supply chain disruptions and global market changes.

Global coffee prices have continued to rise dramatically in 2024, especially in the last three months. As a result, many coffee suppliers are adjusting their prices as of March 1, 2025, to reflect the rising costs.

Here’s a breakdown of why coffee prices are increasing.

Climate change: Coffee hates extreme weather

Coffee plants are extremely high maintenance. They need just the right amount of sun, rain, and stability. However, extreme weather events caused by climate change have a significant impact on coffee growth.

Production declines in Brazil

Brazil, the world’s largest coffee producer, has been hit hard due to extreme drought. Arabica coffee harvests are declining significantly as coffee plants produce less beans, redirecting their energy toward growing more leaves. These climatic conditions have led to a supply shortage.

The result? Less coffee makes it to market, and the coffee that does make it costs more.

Basically, coffee farmers are struggling, and so is your wallet.

The impact of the extreme weather on the Cerrado region in August 2024. Image: Antonio Sergio.

Shipping delays: The long journey gets longer

Even if coffee beans survive the wild weather, they still have a long journey ahead. Lately, that journey has been painfully slow and ridiculously expensive.

Shipping costs are rising.
Fuel prices are increasing.
Workers are in short supply.

Remember when cargo ships were stuck for weeks at ports during the global supply chain crisis of 2021 and 2022? Some of those containers were full of coffee beans. Since companies have to pay more to move their beans, guess who they pass the cost to? You.

Coffee is the new gold and everyone wants it

Coffee used to be the go-to fuel for exhausted office workers and overworked college students. Now, it’s an international obsession. More people in China, India, and other growing economies are drinking high-quality coffee, sending demand through the roof. The problem? Unlike other crops that can be grown quickly, coffee requires years to cultivate.

More demand + limited supply = you paying premium prices for your daily caffeine hit.

Currency fluctuations are making coffee even pricier

Coffee isn’t just a drink, it’s a commodity that gets traded like oil, gold, and Bitcoin. Just like the stock market, prices go up when investors start speculating. If traders think coffee prices will rise, they buy up coffee futures, causing artificial shortages and making it even pricier.
The weak Euro has worsened the situation by increasing purchasing costs for roasters. Since coffee is primarily traded in US dollars, the lower Euro value makes it even more expensive for European buyers.

Everything costs more

It’s not just coffee beans that are becoming more expensive. Cafés and coffee shops are also dealing with increased costs for rent, wages, milk, sugar, and packaging materials. To stay in business, many have had no choice but to raise prices.

Long story short? It’s not just your coffee that’s expensive, it’s everything around it.

Final sip: Is coffee still worth it?

At the end of the day, coffee is still cheaper than therapy (for now). Prices might keep rising, but at least now you know why.
So, the next time you sip your overpriced cappuccino, just remember it’s been through a lot to reach your cup. Respect the journey.