We thought it was important to give our customers a bit of an update, seeing as coffee prices have unbelievably surged to their highest levels in nearly 50 years.
So, if you’ve noticed the cost of your daily brew creeping up, you’re not imagining it. Behind the scenes, global challenges are shaking up the coffee industry, and roasters everywhere are feeling the pressure.
What’s driving the coffee surge?
A mix of weather extremes, supply shortages, and rising costs are pushing coffee prices higher. Here’s what’s happening:
Extreme weather in key growing regions – Brazil and Vietnam, the world's largest coffee producers, have faced droughts and heavy rains. This has hurt crop yields, tightening supply.
Three years of global shortages – Coffee stock levels are at record lows, making beans harder to source and more expensive.
New import regulations – The European Union now requires coffee to be certified as deforestation-free. This has led to stockpiling in Europe, reducing availability worldwide.
Higher shipping and import costs – Disruptions in the Red Sea and Suez Canal are slowing global trade. Shipping delays mean roasters pay more to secure supply.
Rising demand worldwide – More people are drinking coffee than ever, especially in China, India, and the Middle East. With demand up and supply down, prices keep climbing.
Currency fluctuations – The New Zealand dollar has weakened against the US dollar, making coffee imports more expensive.
What does this mean for your coffee?
Over the past five years, green bean prices have skyrocketed. Since December 2024 alone, they’ve jumped by more than 30%. Roasters have been absorbing these costs, but margins are now being squeezed to unsustainable levels.
Looking ahead, there’s hope. If upcoming harvests in Brazil and Vietnam improve, the supply could stabilise and the coffee surge could be a thing of the past. But for now, prices remain high, and further increases may be on the horizon.
At Essenza, we’re doing everything we can to keep your coffee high-quality and fairly priced. We appreciate your support and transparency is important to us. If you have any questions, we’re happy to chat!