Change is coming for coffee drinkers everywhere, and unfortunately it is not a positive one. We’ve spoken before about the struggles facing the coffee industry in recent blog posts, from climate change to the particular needs of different types of beans, but this is so much more than. At a time when everything else is more expensive, it seems counterintuitive to raise the price of coffee, the one daily luxury that gives us the will to live some days, but as we will not compromise on quality, it is something that has to happen. But why has coffee gone up in price? Read on to find out.
Coffee prices are rising, but there’s no one answer as to why
That comforting morning ritual, that energising afternoon pick-me-up – your cup of coffee – is likely costing you more these days. You might be asking, "Why are coffee prices going up?" or "Why has coffee gone up in price?" The truth is, several factors are converging to push up the cost of coffee beans, impacting everything from your daily latte to the price of fresh coffee beans you buy for home brewing. Unfortunately headlines announcing the rise in the price of coffee are only going to get more frequent, as this is an issue that won’t be going away any time soon. Even instant blends are looking at almost double prices in the near future. Let's delve into the reasons behind this price hike.
How the EU Deforestation Regulation (EUDR) is Pushing Up Prices
One significant factor is the EU Deforestation Regulation (EUDR). While aimed at curbing deforestation, this well-intentioned legislation is having unintended consequences. The EUDR requires coffee importers to prove their beans weren't grown on land deforested after a specific date. This traceability requirement is complex and expensive, particularly for smaller roasteries. Large companies, with their established supply chains and resources, can more easily comply, leading to increased bulk buying and even hoarding. This leaves smaller roasters struggling to compete, driving up the cost of coffee beans for everyone and ultimately impacting what you pay for your coffee. The price rise is felt most keenly by the consumer.
Smallholder Growers Are Feeling the Pressure
While the impact of the EUDR may be annoying for the buyers, it is certainly felt most acutely by smallholder growers, particularly those in developing nations. Many lack the resources and infrastructure to meet the EUDR's stringent requirements. This effectively shuts them out of the European market, further concentrating power in the hands of larger corporations and contributing to the rising cost of coffee beans. These small growers often rely on simpler, less documented farming methods, making it difficult to prove compliance with the EUDR's traceability demands. This creates a significant barrier to entry for them, limiting their market access and potentially impacting their livelihoods - a harsh blow to people already contending with climate change on the front line, with entire families working on a single coffee farm.
Climate Change and Extreme Weather
It probably comes as little surprise that climate change is another major culprit in why coffee prices are rising. Extreme weather events, like the recent devastating frosts in Brazil, a major coffee producer, are becoming more frequent and intense. These "freak" weather events, as they're sometimes called, can decimate crops, leading to significant supply shortages and driving up prices. Regions already struggling with changing weather patterns are particularly vulnerable. Droughts, floods, and unpredictable rainfall are all impacting coffee production worldwide. The delicate nature of the coffee plant makes it particularly susceptible to even slight variations in temperature and rainfall. While the bid to halt deforestation is admirable and certainly does need addressing, it is important to remember that places on earth that have the hyper specific conditions needed to grow coffee are miniscule, and are shrinking every year because of all of the above. If climate change does not decimate the current crop, it is going after the areas where it can grow too, and if things don’t change soon, then yearly coffee price rises may be a fact of our future.
Coffee is more popular than ever. But is that a good thing?
Countries across the world are proud of their cafe culture. It plays a part in almost every day of our modern lives, both for work and for pleasure, but as it becomes ever more popular, the global demand for coffee is also playing a role in pushing up the price of coffee. While coffee drinking goes back centuries, the widespread adoption of daily cafe visits is a relatively new fad, and more countries are joining it every year. Even traditionally tea-drinking countries are getting in on it: China only got their first Starbucks in 1999, and now there is almost a coffee shop on every street in mainland China's towns and cities. Lattes there have become a status symbol there, as much as a beverage to help you through the day. As coffee grows ever more popular ,particularly in emerging markets, the increased demand puts pressure on supply. Changes in consumer preferences, such as the rising popularity of speciality coffee, also influence prices, as these often require specific beans and growing conditions. The demand for high-quality single origin and ethically sourced beans is also on the rise, which can further impact prices as these beans often come with higher production costs.
Then There’s The Rising Production Costs
Finally, rising production costs contribute to the problem. The world in 2025 is one of variable markets, inconsistent prices and instability across many countries (not helped along by certain tariff threats), and unfortunately this is one of the major causes of price rises for pretty much every aspect of our lives. Coffee is just another in a long list of victims: everything from fertilisers and pesticides to labour (or lack of, as is the case in many locations - thus employers are having to offer higher wages in order to entice workers) and transportation -with the associated fuel cost rises- is becoming more expensive. Sustainable farming practices, while essential for the long-term health of the industry, also often come with higher upfront costs: something that a lot of the traditionally family run small-holding coffee growers cannot come up with. Inevitably, these increased costs are passed along the supply chain, eventually reaching the consumer. The cost of labour, particularly in coffee-growing regions, is also increasing, adding to the overall cost of production.
Unwavering Dedication to Quality
On a more personal level, and the reason we penned this article in the first place, is that the Coffee Bean Shop is also feeling the effect of all of the above. What makes it more acute is that we point blank refuse to compromise on the quality of the coffee beans we roast for our customers. It is this unwavering need for premium quality coffee, that is ethically sourced (sometimes by foot! See specific product pages to see how Liz and co. travel to the growers themselves to make sure that the beans are high quality and the workers are treated fairly.) that means we are having to push up our prices. We will never sell sub-par coffee beans. Because our customers deserve the very best. The world is hard enough to deal with, without bad coffee.
Final thoughts
So, the next time you're wondering, "Why has coffee gone up in price?" remember that it's a complex issue. The EUDR, climate change, the ongoing risk of tariffs, rising global demand, and increasing production costs all play a part. These factors combine to affect the cost of coffee beans. This price rise is going to impact everyone, from the fresh bean roasters; to the instant coffee manufacturers; to coffee shops; and then to you - the coffee drinker.
While the future of coffee prices remains uncertain, you can be sure that The coffee bean shop will only ever offer you the highest quality beans, freshly roasted and delivered to you as quickly as possible and by subscribing, you will always be 10% better off!