The cost of coffee is on the rise, adding to the growing list of breakfast staples affected by inflation. According to Bank of America, coffee prices are expected to climb further in 2025 due to weak crop yields and supply chain challenges.
The arabica coffee market has been experiencing sharp price hikes since late 2024, reaching levels unseen since February 1977. On February 11, 2025, arabica coffee prices hit $4.2995 per pound, marking a significant increase from last year. Factors influencing these price surges include climate conditions, supply chain disruptions, and shifting consumer demand.
Global coffee supply has also been impacted by severe droughts and wildfires in Brazil and Vietnam, two of the world’s top coffee producers, accounting for nearly half of global bean production. While Brazil’s arabica bean yield fell in 2024, an increase in robusta (conillon) production helped mitigate some of the supply shortage. Interestingly, robusta bean prices have declined by 14% in 2025, offering a more affordable alternative for coffee drinkers.
There is, however, some positive news for consumers. A Reuters poll suggests that Brazil’s 2026 coffee harvest could be significantly larger, potentially driving arabica prices down by 30% by the end of 2025.
Tips to Save on Coffee Costs
Until prices stabilize, coffee lovers may need to adjust their habits to keep enjoying their daily cup without breaking the bank. Here are some cost-saving strategies:
- Grind Your Own Beans – Freshly ground coffee delivers better taste and may help stretch your coffee supply.
- Buy in Small Batches – Coffee loses its freshness quickly, so purchasing fresh-roasted coffee in smaller amounts (one to two weeks’ worth) ensures maximum flavor and quality.
- Bulk Buy with Friends or Family – Consider pooling resources with friends or family to purchase larger quantities at a lower price.
- Support Local Roasters – Many independent coffee shops offer loyalty programs and discounts for repeat customers.
While coffee prices remain unpredictable, smart buying habits can help offset rising costs and keep your morning brew affordable.