If you’ve noticed a recent increase in coffee prices, you’re not alone. Coffee lovers across the UK are seeing price adjustments, and it’s not just a local phenomenon - it’s a global shift. But why is this happening? Let’s break down the key factors driving these changes.
The Rising Cost of Green Coffee
The price of green coffee - the raw beans behind your daily cup, have escalated dramatically. This spike isn’t just due to poor harvests, but a mix of climate instability, supply chain disruptions, and shifting global economics. “The past year has been a rollercoaster, but the most shocking shift has been this recent surge,” says our Green Coffee Buyer, Roland Glew. “Market prices are now 65% higher than they were in November.” The impact is rippling through the industry, with farmers and roasters facing rising costs in regions already struggling with the unpredictable effects of climate change.
Currency Fluctuations & The Strength of the USD
Since coffee is traded globally in US dollars (USD), a stronger dollar means businesses must pay more for the same amount of coffee. “The strength of the dollar is worsening the impact on coffee companies purchasing in non-USD countries,” Glew notes, making it even harder for UK coffee businesses to absorb rising costs without adjusting prices.
Government Policies & Economic Pressures
Government policies in the UK have also played a role. Increases in National Insurance (NI) and minimum wages, the removal of COVID-19 rent relief, and ongoing inflationary pressures are all driving up business expenses. These changes impact coffee shops and roasters, making it more expensive to maintain operations while ensuring fair wages and sustainable sourcing.
Climate Change & Production Challenges
Extreme weather conditions in coffee-producing regions are further compounding the issue. Unpredictable rainfall, higher temperatures, and rising production costs make it harder for farmers to maintain consistent supply levels. Specialty coffee, which prioritises quality and sustainability, is particularly affected since it relies on meticulous farming practices that are more vulnerable to climate shifts.
Supply Chain Disruptions
Even with strong, relationship-based sourcing, supply chain disruptions are making things more challenging. The closure of Red Sea shipping routes, for instance, has caused delays and additional costs in international logistics. While supply has remained steady so far, Glew warns that “supply chain pressures may soon intensify as buyers of physical coffee are forced into short positions.”
Specialty Coffee: Quality Over Quantity
Unlike mass-market commercial coffee, specialty coffee emphasises ethical sourcing, sustainability, and quality. The price you pay isn’t just for a cup of coffee -it supports fair wages for farmers, sustainable farming practices, and continued investment in high-quality beans. Glew explains, “Specialty coffee roasting is a tough, low-margin industry, typically led by business leaders driven by passion and a vision to create meaningful impact across the supply chain.”
The Growing Demand for Specialty Coffee
At the same time, consumer demand for specialty coffee is growing. According to the Deloitte Coffee Study 2024, one in four consumers has now tried specialty coffee, driving up commodity prices further. As demand rises, so does the cost of sourcing premium beans.
What This Means for You
While we strive to absorb as many of these costs as possible, maintaining quality and ethical sourcing means some price adjustments are unavoidable. By supporting specialty coffee, you’re not only enjoying a superior product but also contributing to the sustainability of the industry and the livelihoods of those who make it possible.
“We remain committed to maintaining quality and sustaining long-term, equitable relationships with both suppliers and customers,” Glew reassures. “Historically, global coffee demand has continued to grow even when market prices are high, but these unprecedented levels may well change that.”
Thank you for your continued support and appreciation for great coffee. If you have any questions about these changes, feel free to reach out - we’re always happy to chat!