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19th April 2024
12:04pm BST
The cost of your daily coffee fix might be on the rise as the price of arabica beans hits a two-year high on commodity markets.
This will be accompanied by a surge in robusta coffee prices, the cheaper alternative used in instant drinks.
Arabica and robusta beans have seen a notable increase of 5.4% this week, driven by factors such as reduced output in Vietnam, the world's largest producer of robusta beans.
Concerns over next season's output, coupled with crop worries in Brazil - another major producer - have contributed to the escalating prices.
The impact of these hikes is not only felt by consumers but also by companies like Lavazza, an Italian coffee giant.
Lavazza's Group CEO, Antonio Baravalle, said falling profitability is to blame for the rising cost.
Baravalle highlighted the challenges posed by the "sharp increase in the cost of the raw material," particularly for green and robusta beans.
Despite efforts to monitor the international market, Baravalle warned that "extremely high prices persist" for robusta coffee, indicating potential challenges ahead for both producers and consumers.
A recent survey conducted in Ireland shed light on the significance of it in people's daily routines.
With 62% of respondents reporting they drink coffee, and a majority consuming at least two cups a day, it plays a pivotal role in Irish culture.
The Americano emerges as the preferred choice, with an average spending of €2.99 per cup.
A notable percentage of respondents, especially women, said they consider coffee as 'extremely important' to kickstart their day (same).
As coffee prices continue to climb, it remains to be seen how consumers, businesses, and coffee-producing nations navigate the evolving landscape of the global coffee market.
Whether it's adjusting prices, exploring alternative blends, or advocating for sustainable practices, the future of your morning brew may undergo some changes over the coming months.
