Organic Arabica Coffee Prices Surge in 2025: Understanding the Cost Increases

In 2025, wholesale Arabica coffee prices have reached record highs, doubling over the past year, with 25% of that increase occurring since January alone. This sharp rise is placing significant financial pressure on small, family-owned coffee brands like Coast Roast, which remains committed to providing sustainably sourced, organic, and specialty-grade coffee. While we continue to prioritize quality, the economic realities of supply chain disruptions, climate challenges, and increased production costs have made price adjustments inevitable.

Key Factors Driving Coffee Price Increases

1. Climate Change and Adverse Weather Conditions

Brazil, Ethiopia, and Vietnam—together responsible for nearly 60% of the global coffee supply—have faced extreme weather conditions that have significantly reduced crop yields. Brazil, the world’s largest coffee producer, is experiencing its worst drought in over 70 years, severely impacting harvests. Meanwhile, Vietnam’s coffee farms have suffered from prolonged drought followed by devastating floods, leading to a 40% decline in exports, while Brazil’s exports are down 8% year-over-year. These weather-related disruptions have tightened global supply, making high-quality organic Arabica beans scarcer and more expensive.

2. Supply Chain Disruptions

Global shipping routes have been severely affected by ongoing geopolitical conflicts. The Red Sea, which handles 30% of the world's container traffic, has seen major disruptions due to the ongoing Israel-Hamas conflict. These logistical challenges have led to shipping delays and higher transportation costs, further inflating coffee prices. For small-batch roasters like Coast Roast, reliable and timely delivery of fresh coffee beans is critical, making these disruptions especially challenging.

3. Increased Global Demand

Worldwide coffee consumption continues to rise, with emerging markets like China and India seeing demand surge by as much as 150%. As coffee culture expands in these regions, competition for premium organic Arabica beans has intensified, driving prices even higher. For brands like Coast Roast, which sources only the finest organic beans, securing high-quality coffee has become more competitive than ever.

4. Speculative Market Forces

The global coffee market has also been impacted by speculative investors, who, reacting to reports of poor harvests and supply chain bottlenecks, have driven up coffee futures prices. This market speculation adds another layer of volatility, making it increasingly difficult for small businesses to manage costs and forecast pricing.

5. Rising Production Costs

Beyond the price of raw coffee beans, the cost of production has risen sharply, driven by:

• Higher operational expenses (including energy and facility costs)

• Labor shortages and rising wages

• Increased costs for packaging, labeling, and licensing

• Escalating transportation and logistics expenses

At Coast Roast, we have absorbed most of these increases over the past eight years to keep our prices stable. However, due to the unprecedented rise in costs, a modest price adjustment is now necessary to sustain our commitment to quality and sustainability.

Commitment to Our Customers

The challenges facing the coffee industry in 2025 have created a ripple effect across the entire supply chain, from coffee farmers to small-batch roasters like Coast Roast. Despite these hurdles, we remain dedicated to delivering the highest-quality ethically sourced organic decaf and specialty coffees.

We deeply appreciate your continued support and understanding as we navigate these industry-wide shifts. Our goal remains the same: to provide you with the finest organic coffee at a fair price, while upholding our commitment to ethical sourcing and sustainability.

Thank you for being part of the Coast Roast family!