A BREAKFAST staple enjoyed by millions of people each morning may soon see a price increase at grocery stores and chains like Starbucks and Dunkin’.
As the cost of coffee surges in 2025, an expert coffee buyer has outlined the three factors driving the price increases and when consumers can expect to feel the impact.
GettyCoffee is a breakfast staple for millions of Americans and people all around the world[/caption] GettyCoffee prices are on the rise due to three main factors[/caption] Klatch CoffeeThe U.S. Sun spoke with coffee expert Mike Perry on the rising costs of the breakfast item[/caption]Coffee is a pick-me-up enjoyed by many people around the world each day, ingrained in many cultures.
The cost of your morning cup of joe may soon become more pricey, adding another financial burden to the breakfast category alongside the already high cost of eggs.
The price of the beloved beverage has been on the upsurge, with Arabica coffee prices on the Intercontinental Exchange reaching $3.69 per pound late last month, per the Wall Street Journal.
Arabica coffee futures hit a record high of $4.10 per pound on February 7, marking a more than twofold increase over the past year – and 25% of the price hike has taken place since the beginning of this year.
ON THE RISE
The price hikes are mainly the result of three factors according to Mike Perry, a coffee expert.
He serves as the green coffee buyer for Klatch Coffee, a family owned and operated coffee roaster based in Rancho Cucamonga, California, with “green” referring to unroasted coffee beans.
Coffee Stats
73% of Americans drink coffee every day 36% of people drink three to five cups of coffee a day 51% of people purchase coffee from a coffee shop at least once a week 25% of people like to sip on espresso martinis, a 79% increase from 2022 48% of people agree that drinking coffee benefits their health 48% of people report Starbucks coffee is their favorite brand, while 45% prefer Dunkin’Source: Dive Research
Perry shared that the most obvious factor was total coffee output, limited by weather conditions.
Weather patterns have impeded global agricultural production, such as high temperatures, changing precipitation levels, extreme droughts, and intense flooding.
Driven by climate change, these factors have taken a hit to coffee-growing regions in South America, Central America, Southeast Asia, and East Africa.
For example, Brazil, the world’s largest coffee producer, is currently experiencing its worst drought in 70 years.
The weather conditions have led to water shortages, crop failures, and poor crop estimates for 2025.
Vietnam, the second largest coffee producer, also faced a severe drought last year spanning several months followed by severe flooding and landslides during Typhoon Yagi.
The Arabica bean, accounting for around 60% of global coffee production, is especially vulnerable to climate change, according to studies.
Such changing weather conditions can also boost the frequency of diseases in coffee crops, leading to decreased yields for farmers.
Although US coffee growers in areas such as Hawaii, Puerto Rico, and California are distanced from the climate conditions ravaging coffee crops in other countries, their output is insufficient to meet domestic demand.
Other factors beyond climate change are also contributing to the increasing price of coffee beans.
Perry noted that uncertainty related to Trump’s tariffs has played a role in rising coffee costs, pointing to the unexpected tariff increase on Colombian imports.
Although the proposed tariffs were quickly retracted before taking effect, Perry explained that they still remain on the table as a possible negotiating tactic in the future.
“If additional tariffs on coffee producing countries like Colombia were implemented, that would further add to higher prices. This type of uncertainty in the market is another factor contributing to record prices,” he said.
The coffee expert shared a third factor pushing up prices for the beverage – the ongoing increase in total demand for coffee worldwide.
“Even with total consumption in North America stable, the worldwide market for specialty coffee continues to expand rapidly, driven by increased consumption in countries like China,” said Perry.
“American retailers and roasters source coffee on a world market and in 2025, there is simply more competition.”
FEELING THE IMPACT
With coffee prices on the rise, consumers may soon see the cost of the breakfast staple passed on to them.
“Consumers will definitely see higher prices in the future, however, those increases may not be immediate, depending on where they buy their coffee,” said Perry.
The expert predicted that shoppers and customers of coffee chains such as Dunkin’ and Starbucks could expect to feel the impacts of price increases in three to six months.
He explained that it takes time for new crops to be harvested, processed, shipped, and roasted before reaching your local cafe or retail shelves.
“Larger entities are better able to lock in future prices via contracts, so they are better insulated from increases when compared with small and medium size importers and roasters,” he added.
“Ultimately, however, price increases will hit everyone, no matter how large or small, once those contracts expire.”
Perry also noted that the price of unroasted coffee beans was just one component of retail prices.
“Retailers may also absorb increases in other ways, like using smaller portion sizes, less flashy packaging, or substituting less expensive ingredients in their beverages,” he said.
As coffee prices are on the rise, Walmart has unveiled a new pricing strategy after shoppers struggle to buy another household staple.
The retailer’s CEO also revealed that consumers will see huge price cuts at stores nationwide with cheap deals – and 1,000 are new.
AlamyDunkin’ and Starbucks are likely to feel the impacts of coffee price increases in three to six months[/caption] Read More Details
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