The price of coffee, the consequence of global warming: what happens to your favorite drink

The price of coffee, the consequence of global warming: what happens to your favorite drink

15 October 2021 0 By admin

Arabica coffee has become more expensive. In the last 12 months, its price has doubled, reaching the highest level in the last seven years last month.

Due to the recent bad weather conditions, coffee crops in Brazil have suffered. Drought and frost have reduced coffee stocks. The largest coffee producer reports that global supply will be limited for at least two years.

This combined with rising transport costs and the lack of shipping containers affects global supply chains and fuels inflationary pressures.

The good news is that coffee drinkers are addicted to caffeine. Under these conditions, the level of consumption is unlikely to be affected, especially given that demand for coffee is still recovering from the pandemic.

This drink is such an important part of consumers’ daily routines. It would take a lot to change your coffee habits, ”says Darren Seifer, an analyst at market research firm NPD Group. He also says that coffee enthusiasts are accustomed to volatile prices, so it should not affect their daily consumption.

The demand for coffee is not completely indestructible, as evidenced by the fact that the pandemic caused the first annual decline in this demand after 2011.

Analysts at Rabobank International show that global coffee consumption is projected to rise to 168.8 million bags this year, up from 164.8 million bags last year.

The global market is expected to record an average annual rate of 9% over the next three years, estimates the Starbucks Corp. coffee chain.

However, the impact of rising coffee prices will have a different effect, depending on the region and the distributor, says Vanusia Nogueira, director of the Brazilian Specialty Coffee Association.