Why Are Coffee Prices Soaring? Here’s What’s Brewing Behind the Scenes

If you’ve noticed that your morning cup of coffee is getting pricier, you’e not alone. Coffee prices have been on a steep climb, and it all boils down to the skyrocketing cost of raw green coffee beans.

This specifically affects us at Acorns coffee due to our purchasing routes direct from traders and getting in the best raw coffee beans to roast for you to enjoy.

As of February 2025, coffee futures in New York have shot up over 110% since the start of the year! Hitting more than $4.30 per pound the highest ever recorded. So, what’s causing this dramatic rise? Lets break it down.

1. Extreme Weather in Coffee-Producing Regions

Climate change is hitting coffee growers hard. Brazil, the largest producer of arabica beans, has been battling severe droughts and intense heatwaves. These conditions have slashed crop yields and made it harder for farmers to produce the quantities they used to. On the other side of the world, Vietnam’s robusta coffee powerhouse has faced erratic weather patterns that have disrupted their harvests too. With less coffee available globally, prices are naturally going up.

2. Ongoing Supply Chain Woes

Supply chain issues that started during the COVID-19 pandemic are still lingering. Shipping delays and rising transportation costs are making it more expensive and time-consuming to move coffee from farms to roasters and, eventually, to your cup. Most of our regular customers will know they’re have 3 month waits on some of their favourite coffee! Port backlogs and logistical challenges are making things even worse, creating a perfect storm of delays and price hikes.

3. Geopolitical Instability

Global conflicts and trade disruptions are adding more pressure to an already strained supply chain. Delays at borders, increased tariffs, and political uncertainties are making it more difficult to export coffee smoothly. These obstacles not only slow down shipments but also inflate costs along the entire supply chain.

4. Rising Production Costs

Farmers are facing higher costs for everything from fertilisers to labour. The energy required to process coffee has also become more expensive, with rising fuel and electricity prices playing a role. With all these rising expenses, coffee producers have little choice but to pass those costs on to buyers, leading to higher prices for green coffee beans.

5. Speculative Trading

Whenever there’s uncertainty in a market, speculative trading tends to ramp up. Investors betting on future price increases have amplified the volatility in the coffee market, driving prices even higher.

Looking Ahead

Can we expect relief anytime soon? That depends on a few key factors, like whether weather conditions improve in major coffee-growing regions and how global supply chains adapt. Until then, the industry is bracing for continued price volatility.

At Acorns Coffee, we’re doing our best to manage these challenges while still offering high-quality coffee without breaking the bank. Whether you brew your own at home or visit your favourite local Acorns Coffee, it’s important to remember that every cup represents a global network of hard work, dedication, and resilience.

Cheers to that and here’s hoping for more stable prices soon!