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Rising Coffee Prices in 2024: What It Means for Consumers and Producers

The global coffee market is going through a period of unprecedented turbulence in 2024. Since the beginning of the year, and especially recently, coffee prices have reached historically high levels, influenced by economic, environmental, and geopolitical factors.

At Shoukâ, we are directly feeling this increase, impacting our products and the way we collaborate with our specialty coffee producers.

Why are coffee prices rising?

1. Weather hazards affect global production

Weather conditions have been one of the main drivers of this increase. Brazil, the world's leading coffee producer, has experienced waves of drought and extreme weather conditions, which devastated a large part of the harvest. According to industry experts, Brazilian production fell by nearly 18% in 2024 compared to the previous year, which significantly reduced the supply on the global market.

At the same time, key regions in East Africa, such as Ethiopia, have also been affected by violent weather phenomena, reducing the quality and yield of their harvests. The combination of these events has led to an overall decline in global supply, which is putting additional pressure on prices.

2. Rising production costs: an unavoidable reality

In addition to weather conditions, coffee producers are facing rising production costs. The increase in prices of fertilizers, agricultural equipment, and labor costs has burdened farmers' expenses.

Furthermore, the war in Ukraine has disrupted supply chains, increasing the transport and export costs of coffee beans. These factors have caused continuous price inflation throughout the year.

3. Growing demand on global markets

Asian markets, especially China, are experiencing growing demand for high-quality coffee products, leading to additional pressure on global resources.

The global coffee market has seen a 6% increase in demand in 2024, fueled by the expansion of the middle class in emerging countries. This strong demand, combined with reduced supply, has contributed to the dizzying rise in prices.

What are the consequences for our Shoukâ products?

At Shoukâ, we are committed to offering premium quality products, carefully selected for their exceptional flavors and production ethics. However, recent increases in coffee prices will have repercussions on our procurement costs.

Our specialty coffees will have to undergo a slight price increase in the coming days. We are doing everything we can to minimize the impact of these increases on our customers, but the reality of the global market makes this decision unavoidable.

How to deal with the increase in coffee prices?

1. Prioritize quality products

Instead of giving in to the temptation of cheap coffees, it is wiser to opt for higher quality products.

Specialty coffees, like those offered by Shoukâ, are often more expensive, but offer an incomparable tasting experience, with rich and complex aromas.

2. Explore alternatives like Cascara

To diversify your taste experiences and deal with the price increase, Cascara, coffee husk infusion, represents an excellent alternative. This often overlooked product offers a sweet and slightly fruity flavor, while being more affordable.

At Shoukâ, we offer a selection of 100% natural Cascara, ideal for those who want to vary their pleasures without compromising quality.

3. Rely on short supply chains and responsible consumption

Choosing coffee from short supply chains, where producers are directly paid for their work, guarantees superior quality while supporting a local economy. At Shoukâ, we work with responsible producers, offering fair compensation and sustainable farming practices.

coffee beans in cups

The impact of price increases on coffee market trends

1. Coffee as a luxury product?

Rising prices could lead some consumers to consider coffee as a luxury product rather than an everyday drink. This evolution could well affect consumption habits, especially in countries where raw material prices have a direct impact on household purchasing power.

2. The rise of specialty coffee

At the same time, demand for specialty coffees continues to increase.

More and more consumers favor quality coffee, often coming from small producers or micro-lots, for an authentic tasting experience.

To better understand, know that a €5 increase per kilo of your coffee represents a moderate impact of only 5 cents per cup. This is something to keep in mind when it comes to supporting quality coffee production while maintaining responsible consumption.

Evolution of Arabica prices since 2020:

  • 2020: 1.18 USD per pound
  • 2021: 1.30 USD per pound
  • 2022: 1.45 USD per pound
  • 2023: 1.90 USD per pound
  • 2024: 2.60 USD per pound (forecast)

Reduction in global coffee production in 2024:

  • Brazil: decrease of 18% compared to 2023
  • Vietnam: decrease of 10% compared to 2023
  • Colombia: decrease of 5% compared to 2023

Useful links

For detailed analyses and updates on coffee news, check out these sources:

At Shoukâ, we remain dedicated to offering an unparalleled coffee experience despite market challenges. We encourage you to explore our wide range of products and support more responsible consumption.

Written By : Shoukâ

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