Why did coffee prices in the United States soar by 20.9%? Drought, tariffs, and supply shortages are the main reasons.

Zhitan Financial APP learned that the global coffee futures prices are expected to continue to rise in 2025, with both Arabica and Robusta coffee likely to hit new highs after many years. The US market is also significantly impacted, with retail prices of coffee in grocery stores soaring. According to data from the US Bureau of Labor Statistics, coffee prices in the US rose by 20.9% year-on-year in August, with significant increases in the categories of roasted coffee and instant coffee. This round of price increases is mainly driven by multiple factors: ongoing drought in Brazil leading to crop reduction, poor coffee growth in Vietnam exacerbating global supply shortages, and strong market demand and exchange rate fluctuations further pushing up costs.