Global Coffee Prices Surge Amid Rising Production Costs
Instant and ready-to-drink coffee prices increase as manufacturers face higher expenses
As of February 1, 2025, the Thai Wholesale and Retail Trade Association has announced that prices for instant and ready-to-drink coffee products will rise.
This adjustment is attributed to escalating production, transportation, and labor costs.
Somchai Pornratanacharoen, honorary adviser to the association, noted that coffee manufacturers are compelled to implement these price hikes due to increased operational expenses.
He highlighted that consumers might respond by seeking more affordable alternatives or reducing their coffee consumption.
Additionally, café and coffee shop operators are anticipated to raise their prices to maintain profit margins.
The retail price of instant coffee is set to increase by five percent, while ready-to-drink coffee will see an average rise of two baht per unit.
Such adjustments are expected to impact consumers' cost of living, particularly affecting low-income groups who are already burdened by rising expenses.
On a global scale, coffee prices have experienced significant surges.
The price of Arabica beans, which account for the majority of global coffee production, has risen dramatically.
The cost of Robusta beans also reached a record high in September 2024, driven by supply concerns.
Market analysts attribute these price increases to adverse weather conditions affecting major coffee-producing nations, including Brazil and Vietnam.
Reduced crop yields, coupled with growing global demand, have intensified pressure on supply chains, contributing to the ongoing rise in coffee prices worldwide.