Why is coffee so expensive in 2025?

As of March 2025, coffee prices are at an all-time high. And they’re expected to keep rising. If you’re wondering why coffee is so expensive in 2025, the answer lies in multiple factors. A drought in Brazil in Q3 of 2024 has sparked concerns over poor crop yields, leading to price increases in anticipation of scarcity. Like stocks, coffee is a traded commodity heavily influenced by market sentiment.

To keep prices down, major retailers like Lavazza and Nespresso took profit cuts in late 2024/early 2025. However, this isn’t sustainable long-term, and these supermarket brands are expected to raise prices as the year progresses.

We often get questions about the cost of our coffee. To provide clarity, we’ve broken down the key factors driving the fluctuating wholesale and retail costs.

Factors affecting the price of coffee

Type of bean

Arabica beans are usually more expensive than Robusta beans, as they are a fussier crop and produce a more complex, less bitter flavour.

Furthermore, coffee beans are graded, based on growing practices and flavour, as either ‘commodity’ or ‘specialty’, with ‘specialty’ coffee beans fetching a higher price.

The wholesale price

Crop yield

The more coffee produced, the cheaper it is – is generally the rule.

Weather

The crop yield will be entirely at the mercy of weather conditions in the region. Coffee is a very sensitive crop, and temperature, rainfall and any extreme weather will directly impact its growth. Climate change is driving more extreme weather, for example severe droughts followed by heavy rain—a lethal combination for coffee plants—occurring with increasing frequency.

Disease

Diseases like coffee leaf rust are not only devastating for coffee growers, but they are made more prevalent by climate change. Areas with outbreaks of CLR will see farmers move away to find less susceptible land.

Transport/ Logistics

Coffee beans are grown in the tropics, and the consumer market requires the beans to be transported across the globe. This process usually takes place by shipping freight. Shipping rates are subject to influence by fuel prices, port fees, delays and disruption. Wars and other conflicts can close major shipping routes, so political instability can also drive up the price of coffee.

Demand

As demand increases, so does the price of coffee. Emerging markets like China and India have seen an increase in consumption. Despite being traditional tea consuming cultures, global coffee trends are influencing young people to drink more coffee, so increased demand in such populous countries has driven the price of coffee up.

Market sentiment

Market sentiment refers to overall attitudes toward a product’s availability. For coffee, it largely depends on yearly crop yields. As mentioned, sentiment has driven prices up from 2024 to 2025. Unfortunately, it is highly volatile and incredibly influential.

FreshGround’s prices

Quality

We buy direct from our growing partners in Brazil, whose farms are contained in one 5km² area. Our product is dependent on weather conditions. These farmers grow specialty coffee, and we use mainly Arabica beans in our blends. These things all contribute to higher cost.

Sustainability

We also chose our growing partners for their sustainable farming practices, and you can read more about this here. The most environmentally friendly methods are rarely the cheapest, so we pay a premium for choosing a more eco-friendly farm.

In short, coffee has become expensive in 2025 due to a combination of weather conditions, supply chain challenges, and rising global demand. While many brands are absorbing costs to delay price increases, this is not a long-term solution. At FreshGround, we are committed to sourcing high-quality, sustainable coffee, ensuring both exceptional flavour and ethical sourcing. Though prices fluctuate, our focus remains on providing the best coffee experience for our customers while supporting responsible farming practices.