Coffee prices double in 6 years:Robust demand high ingredient costs make sipping hot beverage a costly affair

There is often a long queue outside the vintage Italian coffee cart on Kew Bridge in London. Joggers, tourists and dog walkers, all want to start their day with coffee in hand. But Anthony Duckworth, who runs the cart, often has his eyes more on prices than customers. An iced latte at his place costs 4.5 pounds (₹580). His worry is that the price might reach 5 pounds (₹644). This concern belongs to the entire global economy. Today, a cup of coffee reflects the climate crisis, trade wars and changing consumer culture. The world’s coffee mainly depends on two beans – Arabica and Robusta. Arabica grows in the cool hills of Brazil, Ethiopia and Kenya, while caffeine-rich Robusta is dominated by Vietnam. But over the past two years, weather has caused major damage to both crops. As a result, the price of Arabica beans has risen from an average of $1.2 per pound to over $4 (₹384). Coffee industry veteran Giuseppe Lavazza believes that relief is not coming anytime soon. Meanwhile, American tariffs deepened the crisis. The Trump administration imposed tariffs of up to 46% on Vietnam, 32% on Indonesia, and 50% on Brazil. Ground coffee prices in America increased by 17% and instant coffee by 25%. Eventually, due to growing discontent, coffee had to be given relief from tariffs. But the trouble didn’t end there. Due to Houthi attacks in the Red Sea, ships going from Vietnam to Europe are now taking the long route around Africa. The journey has increased by 4,000 miles. On top of that, under Europe’s new regulations, coffee farmers must prove that coffee was not grown by cutting down forests. Buying continues despite price increases, that’s why prices don’t come down Interestingly, despite being expensive, the demand for coffee has not decreased. The picture is clear – the supply chain is in crisis, climate change and geopolitics are driving up prices, but the world’s love for coffee remains unwavering. Now coffee is not just a drink, but has become an ‘experience’. Chinese companies are challenging Starbucks on the strength of coffee data and technology, while Britain’s Greggs has become the largest coffee seller by selling cheap coffee through automation.