Coffee prices, which have been accelerating their growth to record values on world markets in recent years, will continue to rise. The reason is greater demand on the global market and at the same time a lower supply of coffee. Therefore, there is also a risk of its lack. This follows from the answers of analysts and experts to ČTK’s questions. For example, according to XTB data based on Eurostat statistics, the price of coffee in the Czech Republic is 46 percent higher this year than in 2015, in the EU it is 34 percent on average.
“In the first eight months of 2024, we paid an average of CZK 130 for 250 grams of roasted coffee beans, which is CZK ten more than in the same period last year. In 2025, coffee prices will rise by another ten to 30 percent,” an analyst told ČTK XTB Jiří Tyleček. According to him, this trend is reflected not only in retail prices, but also in the prices for a cup of coffee in cafes.
Currently, the price of Arabica coffee has exceeded three dollars per pound, which is the highest since 2011, said Lubomír Kadaně, director of the non-profit organization Fairtrade CR and SR. The reason is the expected drop in production caused by the drought in Brazil, which has long been the world’s largest producer of this type of coffee. Traders react accordingly and the result is a high coffee price, he added.
New harvests are more expensive on average by 30 to 40 percent per kilogram, added Adéla Ladman, manager of the roastery and online store Upraženo. “Even though all coffees have become more expensive, we projected an increase only for those where it was really significant, by a maximum of ten percent. However, we cannot avoid a general increase in the price of coffee after Christmas,” she added.
Another factor in the rising price is the greater demand for coffee in the global market. According to Purple Trading analyst Petr Lajsko, demand is growing especially in Asia. “The growing number of consumers in China and South Korea is pushing prices up. This combination of lower supply and growing demand is putting pressure on prices, which are rising by tens of percent,” said Lajsek. Tyleček added that coffee is becoming increasingly popular also in South America and among the younger generations.
At the same time, analysts and coffee sellers have recently registered a change in coffee consumption preferences, which also affects its price. While in the past, according to Tyleček, instant coffee was the most common choice, today people are more inclined towards quality coffee beans. With the growing interest in coffee beans, the interest in home coffee makers is also growing.
For example, a May ČTK survey among companies offering coffee machines shows that sales of coffee machines in the Czech Republic increased by ten to 20 percent year-on-year. Companies that offer barista courses are also seeing increased interest. According to analysts, the increasing consumption of coffee is simultaneously pushing its price up. According to that According to the Czech Statistical Office, one Czech consumed 2.6 kilograms of coffee beans in 2022, while in 2013 it was 1.9 kilograms.
One of the reasons for the increase in prices is also the amendment of the legislation within the EU, which requires farmers to compensate for deforestation caused by coffee cultivation, Ladman recalled. All importers of coffee into the EU must therefore declare that they bring coffee from farms that comply with these conditions. “According to consumption versus production predictions, 2025 will be the first year when more coffee is drunk than grown. So it is possible that coffee will become a scarce commodity in the future,” she concluded.
Source: www.tyden.cz
