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Why are coffee prices hitting record highs?

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May 30, 2025

Coffee is the second most consumed beverage after water. 2.6 billion cups of coffee are drunk around the world every day. But coffee drinkers are having to dig deeper and deeper into their pockets.

Why Your Morning Brew Costs More Than Ever

Coffee lovers across Europe are waking up to a bitter truth: Their favorite drink is getting more expensive. Over the past year, the price of coffee has nearly doubled, leaving consumers and café owners alike wondering what’s behind the surge. From bustling cafés to supermarket shelves, the impact is being felt everywhere. But this isn’t just about inflation—it’s a complex mix of global issues that are brewing trouble for the coffee industry.

Speculation, Shortages, and Supply Chain Shocks

The price hike is driven by a perfect storm of factors. Coffee is traded on global stock exchanges, and speculation has inflated prices without benefiting the farmers. Meanwhile, extreme weather in top-producing countries like Brazil, Colombia, and Vietnam has led to poor harvests. Add to that disrupted supply chains, political instability, and a shortage of shipping containers, and the result is a volatile market. Importers in Europe are receiving fewer shipments, and quality checks are becoming stricter due to concerns about mold and contamination. Even specialty roasters, who have long-standing relationships with farmers, are struggling. Some report needing security to protect their beans from theft, while others have lost supermarket clients unwilling to absorb the higher costs.

Why Coffee Is So Expensive—and Will Stay That Way

So, why is coffee so expensive? It’s not just about supply and demand. Climate change is making coffee cultivation increasingly difficult, while new EU regulations will soon require proof that beans are not linked to deforestation—adding more pressure on producers. Tariffs, especially on robusta beans from Vietnam, are also reshaping global trade routes. Ultimately, the era of cheap coffee may be over. As one expert put it, perhaps coffee was too cheap to begin with—only palatable when masked with sugar and milk. The future of coffee may be pricier, but also more sustainable and transparent.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.

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