A report released on March 14 by the Food and Agriculture Organization (FAO) revealed that global coffee prices soared 38.8% in 2024 compared to the average of last year. The UN agency cautioned that if major production and supply problems occur in important developing areas in 2025, prices may increase even more.

In December 2024, Arabica, the superior coffee used for roasting and grinding, was 58% more expensive than it was a year earlier. Meanwhile, Robusta, which is primarily used for blending and instant coffee, had an actual price increase of 70%. This was the first time since the mid-1990s that the price difference between the two types had decreased.

Africa’s Ethiopia and Kenya, South America’s Brazil and Colombia, and Asia’s Indonesia and Vietnam were among the key coffee-growing regions examined in the FAO report. Ethiopia experienced the largest increase in coffee bean producer prices (17.8%) in 2024 compared to 2023, followed by Indonesia (15.9%), Brazil (13.6%), Kenya (12.3%), Colombia (11.7%), and Vietnam (5.8%).

Global Coffee Prices Soared 38.8% in 2024 Due to Extreme Weather

Extreme weather in Brazil, decreased productivity in Indonesia, and limited export quantities from Vietnam were some of the main causes of the steep price increase.

Long-term dry weather in Vietnam reduced coffee production by 20% in 2023–2024, resulting in a 10% decline in exports for the second year. Excessive rains in April and May of 2023 harmed coffee cherries in Indonesia, causing annual production to drop by 16.5% and exports to plummet by 23%.

Due to hot and dry weather, Brazil—the world’s top producer of coffee—had to lower its production projection for 2023–2024. Originally anticipated to rise by 5.5% annually, official estimates showed a 1.6% decrease. Together, Brazil and Vietnam produce almost half of the world’s coffee.

The Director of FAO’s Markets and Trade Division, Boubaker Ben-Belhassen, stressed that the high prices should stimulate research and technological investment to increase climate resilience in the coffee industry, which is largely dependent on smallholder growers.

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Shipping Costs Contributed to Rising Consumer Prices

Global coffee prices also rose as a result of higher shipping expenses. According to preliminary statistics from December 2024, consumer coffee prices increased by 3.75% in the EU and 6.6% in the US over the same period in 2023.

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