Coffee prices break records: what awaits drink lovers in 2024
24 July 2024 15:49
The world coffee market is experiencing a serious crisis, which leads to a rapid increase in prices for the favorite drink of millions of people. Experts warn that the situation may worsen in the near future, reports "Komersant Ukrainian" with reference to Bloomberg.
The main cause of the crisis was adverse weather conditions in key producing countries. Drought in Vietnam, the largest producer of robusta, has led to a fourth consecutive year of shortages. In Brazil, the leader in the cultivation of Arabica, dry weather reduced the harvest, which led to a decrease in the size of the beans.
The situation is aggravated by the growth of demand in new markets, in particular in China. In addition, there is a growing understanding of the need to pay farmers fairly to ensure the sustainability of the industry. Additional pressure is created by new European Union regulations, which require proof that the coffee is not grown in recently deforested areas.
Coffee chains and independent coffee shops are forced to respond to these changes. Many of them have already raised prices or canceled discounts. For example, Variety Coffee Roasters in New York raised prices for the first time in five years. Pret A Manger in the UK has scrapped its coffee subscription, which allowed customers to get up to five drinks a day.
Consumers are beginning to look for alternatives. Some switch to cheaper coffee options or reduce their consumption. The popularity of home brewing coffee is growing, as evidenced by the increase in sales of espresso and coffee concentrate in US supermarkets.
Some companies are experimenting with innovation. For example, startup Atomo Coffee offers “beanless” coffee made from recycled ingredients such as date seeds. Other coffee shops are expanding their range by adding energy drinks and tea.
Experts predict that coffee prices will continue to rise until at least 2025. This forces the entire industry, from farmers to retailers, to adapt to new market realities.
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