Friday, October 24, 2025

HISTORIC RECORD IN THE PRICE OF COFFEE - TOWARDS INCREASED COSTS FOR CONSUMERS

 Filenews 24 October 2025



Coffee prices continued their upward trend, hitting a new all-time high on Thursday, as concerns about the Brazilian harvest and new U.S. tariffs intensify pressures on the global market.

Arabica coffee, the variety widely used by major chains like Starbucks, jumped 3.4%, reaching $4.3510 per pound in futures. This is the highest price on record, surpassing the previous record of $4.2995/pound set in February.

Brazil, low inventories and Trump tariffs fuel the rise

Supply concern is exacerbated by:

  • Brazil, a leading producer country, which has already reduced exports,
  • shrinking global inventories, which makes the market more vulnerable;
  • the new US tariffs on coffee imports, imposed by President Donald Trump since August.

Since the beginning of August, Arabica futures have risen by more than 50%, reinforcing fears of larger increases in consumption and on the shelves.

Increased costs for consumers and cafes

The prolonged rise in prices is expected to have a direct impact on consumers, who are already paying more for their coffee.
Analysts estimate that the combination of tariffs and reduced production may lead to further increases in retail prices, particularly in the U.S. market, where new trade deals with Brazil are expected.