If you’ve noticed your morning brew getting pricier lately, you’re not imagining things. Coffee prices have surged to their highest levels since 1977.1
Why the eye-popping prices? While supply chain disruptions and weather issues in major coffee-producing countries play a role, new European Union regulations aimed at preventing deforestation are reshaping how coffee is traded globally. Starting December 30, these changes will affect everything from how coffee is grown to how it’s tracked from farm to cup. 1,2
What does this mean for your daily caffeine fix? Consider this: 73% of Americans drink coffee daily, with 51% visiting coffee shops at least weekly. If you’re among the 48% who get your coffee from your favorite shop, you might want to brace for impact—these price increases will likely hit both store shelves and your favorite café.3
Some interesting perspective: while we’re paying more for our lattes, only 18% of Americans actually drink their coffee black—down 56% from 2022. The rest of us are splurging on extras like flavored syrups and alternative milk options, with almond and oak milk preferences rising 71% and 90%, respectively, since 2022.3
We’ll keep monitoring these developments and their impact on your coffee budget. In the meantime, you might want to show some extra appreciation to your local barista. They’re dealing with these changes, too!
Cindi Phillips offers securities through Grove Point Investments, LLC, member FINRA/SIPC. Financial Freedom Enterprises, Inc. and Grove Point Investments, LLC are not affiliated.
Notes:
1. Coffee Intelligence, “Coffee prices surge to 47-year highs, reshaping the industry,” November 29, 2024.
2. Voice of America, “How EU deforestation laws are reordering world of coffee,” March 30, 2024.
3. Drive Research, “2024 Coffee Statistics: Consumption, Preferences & Spending.” February 1, 2024.
The forecasts of forward-looking statements regarding coffee prices are based on assumptions, subject to revision without notice and may not materialize.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. Copyright FMG Suite.
