Coffee has always been a working man’s drink, from the classic black coffee to the more elaborate double-shot espresso with oat milk and two pumps of vanilla, no foam. It’s one of the most consumed beverages in the world, but is getting a caffeine kick becoming a premium? This year, the global price of coffee has soared higher than ever, with an eye-popping 68.06 percent year-over-year increase as of April. The price hike affects every type of coffee drinker: Robusta, which is commonly used for instant coffee, and Arabica, typically used for specialty coffee, are both getting more expensive by the cup.
The impact trickles down to local markets, too: In the Philippines, green robusta coffee beans are now up to ₱400 per kilo versus last year’s ₱200 per kilo. Meanwhile, arabica doubled to about ₱800 per kilo. This means the entire coffee supply chain, from producers to suppliers to roasters are shelling out more bucks to stay afloat—hence why your latest coffee runs are becoming a little more steep.
The cost of coffee
The short answer for this price hike? Supplies are tight because of last year’s poor harvest for some of the world’s top producers. Brazil and Vietnam, the first and second largest producers respectively, were hit by severe drought in 2024, resulting in lower yields. But of course, the demand doesn’t wane.
Volcafe, one of the top Arabica producers in Brazil, previously forecasted a harvest of 34.4 million bags, but cut it down by about 11 million bags due to the effects of drought. Vietnam on the hand, renowned for its Robusta coffee, also had a poor yield due to both drought and heavy rainfall.
The Brazilian Association of the Coffee Industry (ABIC) reported that prices could stabilize by April or May, which is the start of the harvesting season. Although with the extreme climate crisis looming over our heads, the Intergovernmental Panel on Climate Change (IPCC) suggests that these environmental changes could severely impact supply chains by 2050.
On top of all that, higher freight shipping costs pad a little more to the increasing price tag.
How businesses are adapting
Businesses like roasters and coffee shops are hard-pressed to adapt to the climbing costs. Sean Lee, CEO of Plain Sight Coffee Roasters, shares how the roastery is adjusting to one of the most challenging times in the coffee industry:
“We want to be transparent about how this impacts us at Plain Sight Coffee, and how we’re navigating the rising costs while staying true to our standards. We’re continuously strengthening our relationships with our trusted traders, farmers, and cooperatives to secure the best possible beans while supporting the livelihoods of those who cultivate them. We’re also exploring opportunities to secure high-quality beans through careful planning and diversification of our supply chains. And most importantly, we’re working on refining our roasting processes to maximize efficiency and minimize waste,” explained Sean.
“While these efforts will help us mitigate some of the impact, you may see some adjustments in our pricing. Please know that any such decisions will be carefully considered and implemented only when necessary to ensure the long-term sustainability of our company and our ability to continue delivering the exceptional coffee you expect and deserve.”
What consumers can do
Even though the Philippines produces its own coffee, the country still relies on imports from the likes of Brazil and Vietnam to meet the growing demand. About 61 percent of coffee is imported, the Philippine STAR reported in April.
While all of this means a heftier price to pay for your daily brew, experts say that consumers shouldn’t worry about a drastic increase.
With the Philippines ranking third globally for consuming the most coffee, what does this mean for the Filipino coffee drinker? Despite the rising prices, Chit Juan, president of the Philippine Coffee Board Inc., says that Filipinos will continue to consume coffee and will likely just change consumer habits. Those who purchase their daily coffee from cafes can try home brewing. Meanwhile, home brewers can explore local offerings for more affordable coffee beans. Check up on your local roasters, weekend markets, or online sellers for fresher, often cheaper options.
