Global coffee prices surge by nearly 39% in 2024

Global coffee prices soared to a multi-year high in 2024, increasing by 38.8% compared to the previous year, according to the Food and Agriculture Organization (FAO). The surge was mainly fueled by unfavorable weather in major coffee-producing regions, coupled with supply disruptions and rising shipping costs.

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In 2024, global coffee prices surged by 38.8%, reaching their highest levels in years due to severe climate disruptions in major coffee-producing countries, according to a report by the Food and Agriculture Organization (FAO). The price of Arabica coffee rose by 58%, while Robusta, often used in instant coffee, experienced an even steeper increase of 70%. This significant rise narrowed the price gap between the two varieties for the first time since the mid-1990s.

The FAO attributes the sharp price increases to extreme weather events affecting Brazil, Viet Nam, and Indonesia—three of the world’s top coffee exporters. 

Viet Nam saw a 20% drop in production due to extended drought, resulting in a 10% decline in exports for the second consecutive year. In Indonesia, excessive rainfall in 2023 damaged coffee cherries, causing a 16.5% production decline and a 23% fall in exports. Brazil, the leading global coffee producer, revised its 2023/24 output forecast from a projected 5.5% growth to a 1.6% decline due to hot and dry weather.

Additionally, increased shipping costs contributed to higher global coffee prices, impacting consumers worldwide. By December 2024, coffee prices in the United States rose by 6.6%, while European Union consumers paid 3.75% more than the previous year.

FAO warns that if climate-related disruptions continue, prices may climb further in 2025. The organization stresses the urgent need for investments in technology, research, and climate-resilient agricultural practices to sustain global coffee production and protect supply chains from future climate shocks.

Coffee holds significant importance in the global economy, with smallholder farmers producing 80% of the world’s coffee. Nearly half of the global supply comes from Brazil and Vietnam. Generating over US$ 200 billion annually, the coffee industry plays a vital role in the economies of several nations, with coffee exports serving as a major economic pillar for countries including Ethiopia, Burundi, and Uganda.