Coffee Prices Might Skyrocket In 2025. Here's Why

While commonly referred to as the most important meal of the day, breakfast may also become the most expensive. With egg prices steadily rising due to bird flu (a situation that led to criminals stealing 100,000 eggs from a truck in Pennsylvania), many Americans are concerned about retaining access to this essential breakfast food in light of shortages. Now, it seems that coffee prices are also expected to skyrocket over the course of 2025, thanks to a decrease in arabica bean crops as well as a drought affecting the yield of robusta beans from Vietnam. 

Since the last financial quarter of 2024, which ended on December 31, the price of arabica coffee has seen an increase of 26%. Based on the unpredictability of coffee markets around the world, analysts expect that prices will continue to rise throughout 2025. In addition to the impact on consumers, some of whom may need to forgo their morning pick-me-up if coffee becomes exorbitantly expensive, businesses are also concerned about the effect high coffee prices will have. 

Coffee crop shortfalls have impacted numerous countries including Colombia and Brazil, and unexpected weather fluctuations are partially to blame. Excessive rain, drought, and extreme high temperatures negatively impact crops, leading to much smaller yields than normal. Additionally, attacks within Red Sea shipping lanes involving commercial boating operations have led to shipments being diverted to longer routes. 

We previously included coffee in our list of grocery store staples that might cost a lot more in 2025 due to President Donald Trump's plans to implement tariffs on trade partners. While it's not yet clear how these plans will play out and which countries will be subject to taxes for importing goods to the U.S., many are bracing for price hikes. And thanks to the combination of environmental and political factors, enjoying a cup of coffee in 2025 is likely to become a whole lot costlier.