A cup of coffee may be headed for price increase
Northeastern Michigan residents enjoy their morning cup of coffee, as well as sipping down cups of java while at work or on the road.
However, according to recent coffee industry reports, you may have to shell out more money for your steaming cup of coffee or chilled latte. The reason? Well, it is multi-fold.
RECENT FACTS AND RESEARCH ON COFFEE CONSUMPTION
According to the National Coffee Association, coffee consumption has reached a 20-year high. In fact, a 37% increase from 2004 to 2024.
The association was founded in 1911, representing 90% of the nation’s coffee commerce.
During the 1980s, research noted coffee consumption was on a downward “swing” based on health concerns. These concerns focused on high blood pressure, hypertension, and cancer.
The association’s research data for the year 2004 noted that 49% of Americans daily consumed coffee. By 2023, this daily consumption rate has zoomed up to 67%. The data added the most significant coffee consumption rate was those aged 60-plus increasing from 67% to 73%. This was followed by age groups 25 to 39 and 40 to 59 years, both increasing consumption by 3% during this time period. At the same time, ages 18 to 24-year-olds remained at 47%.
The data noted specialty coffee, expresso, and cappuccino beverage drinks increased during this time period anywhere between 7.5% to 18%.
The association stated that ready-to-drink coffee-based beverages increased from 8% to 15%. These beverages quickly surpassed expresso machines.
At home, the research noted that single-cup brewers and drip coffee makers are the most popular preparation methods.
WHY THE PROBABILITY OF A PRICE INCREASE
In a December MSN news report by Maria Glinka, she stated, “Coffee bean prices on global markets have risen by as much as 80% due to unfavorable weather conditions. According to producers, consumers will start to feel the price increases as early as the beginning of next year.”
Media and trade association accounts revealed Brazil and Vietnam are the world’s two largest coffee bean producers.
Columbia, Indonesia, and Ethiopia are also coffee bean-producing countries, but at lower growing levels.
According to Coffee Guru’s website, a coffee crop needs tropical, humid environments, and rich soil at an altitude ranging between 2,000 and 6,000 feet above sea level.
Brazil, which is a major producer of the Arabica flavored bean, has faced its worst August and September drought in over 70 years. Their drought was followed by crop-destroying October rainstorms.
Vietnam is noted for growing Robusta beans, which are slightly lower quality level than Brazil beans. These beans are used in cheaper coffee, including instant. Like Brazil, Vietnam too has faced recent drought and torrential rains which will affect the 2025 harvest.
Based in New Jersey, World of Coffee is a major national supplier of coffee beans for private labels, food services, and coffee shops.
In an early December 2024 media interview, Jackie Newman of World of Coffee commented she expects coffee prices could increase anywhere from 50 cents to $1 a pound.
Coffee bean growers and distributors state with the challenging crop growing and harvesting conditions there may not simply be enough coffee to go around for global consumption.
In an NBC feature news interview with David Ortega, a professor of food economics and policy at Michigan State University, he offered this general observation of the world’s agriculture industry and climate change: “Looking at the recent floods in Europe, for example, that impacted Spain’s Valencia region, a key agricultural producing region in that country, it had some pretty detrimental effects on things like oranges.”
Ortega concluded, “If you look back two years ago, we had a mega drought out West in places like California, where a lot of our specialty crops are grown. Things like lettuce saw a significant rise in price, even beef production was impacted…and we’re feeling the effects on beef prices.”
Might these factors affect your “cup of Joe?”
Most likely you will know well before Sept. 29, which is National Coffee Day, or on Oct. 1, International Coffee Day.
Jeffrey D. Brasie is a retired health care CEO. He frequently writes historic feature stories and op-eds for various Michigan newspapers. As a Vietnam-era veteran, he served in the U.S. Navy and U.S. Naval Reserve. He served on the public affairs staff of the secretary of the Navy. He grew up in Alpena and resides in suburban Detroit.