Coffee prices are rising in 2025: Here's why

In 2025, coffee-bean importers were expecting a bumper crop from Brazil, where more than one-third of the global supply of coffee beans is grown annually. Demand for coffee beans had already begun to outstrip supply, with major players and new consumption territories adding to the challenge. A Brazilian batch would help with increasing demand.

Instead, at the end of 2024, a drought period took hold in Brazil, causing a substantial fall in production. Major producer Vietnam had just suffered similar drought challenges.

And the coffee supply chain in Ethiopia, another top-five growing country, faced massive risk as it shipped through the Gulf of Aden, a waterway plagued by Somalian piracy and attacks by the Yemeni Houthis.

And so, a perfect storm brewed, its intensity in Australia boosted by the fact that coffee tastes have moved towards double shots instead of single espressos.

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