Coffee set to rise to insane price in 2025

Coffee lovers could soon not be able to justify buying their caffeine fix daily with experts warning single cup could cost from $8-$12 by the end of 2025.

Australian Restaurant and Cafe Association chief executive Wes Lambert said the skyrocketing costs of beans were putting direct pressure on cafes owners.

“This is happening all around Australia. This is affecting every cafe,” Mr Lambert told Nine News.

“Up to 30 per cent of businesses will feel heavy pressure by these increases, and we’ve heard about bean prices going up as much as 50 per cent,” he said.

“The supply chain to cafes and restaurants, including beans, is often affected by weather.”

“If you want to enjoy your favourite cafe and your favourite cup of Joe, you may end up having to pay more.

The warning comes as the price of Arabica beans, the world’s most popular variety, continues to rise.

Buying a pound of the bean variety topped US$3.44 on December 10, having risen more than 80 per cent in 2024.

It comes as RMIT logistics and supply chain management Professor Vinh Thai explained in August that there are “several factors contributing to the rising cost of coffee beans”

“First is the havoc wreaked by extreme weather on key supply markets such as Brazil and Vietnam,” Mr Thai said.

“The continuing increase of container shipping rates and other supply chain issues, by which the lion’s share of coffee bean shipments are transported, also greatly contribute to the cost of coffee.

“Roasters may need to pass these costs onto cafes who in turn, may do the same to customers.

“This will likely add further pressure and negatively affect the lifestyle of customers who are already dealing with the cost of living.

“If customers choose to change their coffee habits, this might threaten the Australian coffee industry, which employs almost 70,000 people, as of 2023.

“In the meantime, coffee importers and roasters could look to alternative markets to alleviate cost pressures.

“They could also increase their purchasing power and bulk-buy coffee, by working with peak bodies such as the Australian Coffee Traders Association.”