Your Morning Coffee Just Got Pricier — And It’s Not Going Back Down Anytime Soon

Americans waking up to their daily cup of coffee may soon feel the sting in their wallets, as global supply chain issues and rising demand drive up coffee prices to record highs.

Key Facts:

In February 2025, wholesale arabica coffee prices reached $4.30 per pound — double the previous year’s price.
Ground roast coffee hit a record average price of $7.25 per pound, according to government data.
Brazil’s green coffee bean exports dropped 11.3% in December due to severe drought and frost.
Vietnam saw a 39.5% drop in coffee exports following unseasonal droughts.
Shipping delays in the Red Sea and Suez Canal, along with increased demand from China, are putting further strain on global supply.

The Rest of The Story:

Coffee prices are surging thanks to a combination of climate-related crop issues, shipping disruptions, and rising global demand.

Brazil and Vietnam — two of the world’s largest coffee exporters — experienced major weather setbacks in 2024, slashing output just as consumer demand is climbing, especially in growing markets like China.

Compounding the issue, tensions in the Middle East and attacks in the Red Sea have disrupted shipping routes, slowing deliveries and raising transport costs.

Coffee roasters that tried to hedge their costs through the futures market are now facing higher-than-expected prices — and passing those increases onto consumers.

Companies like J.M. Smucker, which owns major coffee brands, are signaling they will continue adjusting prices based on market conditions.

Smucker’s CEO noted the volatility is partly driven by speculation, and more clarity will come during harvest season.

In the meantime, shoppers are expected to pay more.

Coffee prices hit record $7.25/lb as roasters skipped hedging, got caught by supply shocks, and are now passing costs to consumers. Your coffee is going to go up. ☕️

Source: Bloomberg pic.twitter.com/ZKQe9OtdzJ

— Menthor Q (@MenthorQpro) March 23, 2025

Commentary:

There’s no real replacement for coffee.

It’s not just a beverage — for many Americans, it’s part of their routine, their productivity, and their comfort.

That’s what makes this price hike particularly painful.

Families already adjusting their budgets to account for rising costs at the grocery store, gas station, and pharmacy are now hit in yet another daily expense.

When prices go up for something as essential as coffee, it speaks to a larger issue: economic uncertainty driven by unstable supply chains and poor planning.

The fact that companies feel free to keep passing these costs along without much fear of customer backlash shows just how captive the market is.

The drop in exports from countries like Brazil and Vietnam could have been anticipated.

These nations have faced extreme weather patterns for years.

Yet, there seems to be no meaningful strategy to diversify sources or stabilize the supply chain.

Instead, American consumers are left footing the bill.

And while J.M. Smucker’s CEO talks about “responsibility,” what most people hear is corporate speak for “we’ll raise prices if we can get away with it.”

That might make sense in a boardroom, but for working families, it feels like yet another hit.

Inflation is already eroding wages and squeezing the middle class.

Higher coffee prices may seem minor in the big picture, but they add up — and they serve as a reminder that essentials are getting harder to afford in today’s economy.

The Bottom Line:

Global weather problems, rising international demand, and shipping disruptions are driving coffee prices to new highs.

There’s no quick fix, and companies are already passing the costs on to consumers.

With no real substitute for coffee, Americans will feel this one — every morning, one cup at a time.