For the Quarter Ending December 2025
North America
• In the United States, the Coffee Price Index declined modestly quarter-over-quarter, reflecting easing futures and comfortable inventories at roaster level.
• Coffee Spot Price softened in December as ICE futures corrected and roasters relied on previously contracted volumes.
• Coffee Price Forecast suggests mild upside risk in early 2026, supported by post-holiday restocking and tightening certified stocks.
• Coffee Production Cost Trend remained broadly stable as freight rates normalised and input costs showed limited volatility.
• Coffee Demand Outlook weakened during Q4 as major roasters slowed spot purchases and focused on inventory optimisation.
• The Coffee Price Index reflected balanced imports, steady port operations, and limited urgency from buyers.
• Adequate warehouse availability and smooth inland logistics reduced supply-side disruptions, capping price volatility.
Why did the price of Coffee change in December 2025 in North America?
• Softening futures prices reduced replacement costs, encouraging roasters to delay fresh spot purchases.
• Year-end inventory drawdowns and completed forward contracts lowered immediate demand for physical coffee.
• Stable import flows and efficient port logistics ensured availability, limiting upward price pressure.
APAC
• In Vietnam, the Coffee Price Index fell by 1.08% quarter-over-quarter, reflecting harvest arrivals reducing offers.
• The average Coffee price for the quarter was approximately USD 4166.67/MT, reported by export statistics.
• Coffee Spot Price volatility increased in December as futures softened and physical offers became competitive.
• Coffee Price Forecast indicates moderate recovery early next year supported by seasonal restocking, tightening exports.
• Coffee Production Cost Trend remained stable as fertilizer and logistics costs were unchanged this quarter.
• Coffee Demand Outlook softened in Europe as roasters drew inventory, weakening the Coffee Price Index.
• Rising bonded stocks at Hai Phong and efficient port operations increased export availability, pressuring offers.
• Large exporters increased shifts to manage harvest inflows while forward buying, speculative interest lifted offers.
Why did the price of Coffee change in December 2025 in APAC?
• Peak harvest deliveries swelled exportable supply, increasing bonded stocks and relieving earlier congestion premiums rapidly.
• Haiphong port throughput improved, clearing yard congestion and enabling normalised shipments, reducing short-term price support.
• Overseas roasters front-loaded purchases earlier quarter, then trimmed spot buying, softening demand amid rising inventories.
Europe
• In Europe, the Coffee Price Index edged lower quarter-over-quarter, pressured by subdued roasting demand and ample inventories.
• Coffee Spot Price eased in December as exporters competed aggressively and futures-linked pricing softened.
• Coffee Price Forecast points to cautious recovery in early 2026, contingent on restocking activity and tighter origin supplies.
• Coffee Production Cost Trend remained steady as energy and logistics costs showed minimal quarter-on-quarter change.
• Coffee Demand Outlook softened as European roasters reduced spot buying and prioritised inventory management.
• The Coffee Price Index tracked rising warehouse stocks and muted buying interest across key consuming hubs.
• Smooth port operations and consistent inflows from Asia and Latin America maintained supply comfort.
Why did the price of Coffee change in December 2025 in Europe?
• Weaker futures markets translated into lower spot offers, pressuring physical coffee prices.
• Roasters slowed procurement after meeting earlier-quarter needs, reducing spot market liquidity.
• Ample bonded inventories and efficient logistics reduced urgency among buyers, sustaining downward pressure.
South America
• In Brazil, the Coffee Price Index rose by 10.78% quarter-over-quarter, reflecting tighter supply and stronger export demand.
• The average Coffee price for the quarter was approximately USD 6890.00/MT, based on FOB Santos shipments.
• Coffee Spot Price softened in December as Brazilian harvests improved, reducing arbitrage and pressuring Santos differentials.
• Coffee Price Forecast suggests modest volatility into Q1 as seasonal restocking competes with rising new-crop arrivals.
• Coffee Production Cost Trend remained contained as energy and processing expenses represented share of FOB values.
• Coffee Demand Outlook weakened into December as roaster buying slowed following heavy pre-holiday forward cover activity.
• Coffee Price Index movements were driven by inventory draws in the quarter and easing port congestion.
• Export enquiry strengthened late-quarter, but warehouse inventories remained sufficient, capping near-term upside for FOB differentials.
Why did the price of Coffee change in December 2025 in South America?
• Improved crop prospects in Minas Gerais eased supply concerns, prompting exporters to offer volumes domestically.
• Year-end buyers curtailed purchases after November cover, weakening spot demand and pressuring Coffee Spot Price.
• Port congestion eased and inventories remained ample, reducing urgency for bids and limiting price recovery.
Quarter Ending September 2025
North America
• The Price Index for coffee in North America showed a moderate upward trend in Q3 2025, driven by tightening global supply and sustained consumer demand.
• Specialty coffee brands faced increased cost pressures, while commercial blends remained relatively stable.
• Robusta prices were comparatively lower but also saw upward movement due to increased demand for cost-effective blends.
• The Production Cost Trend remained elevated due to rising labor and transportation costs in key exporting countries.
• Roasters and distributors in North America faced higher input costs, which were partially passed on to consumers.
• The Demand Outlook for Q4 2025 remains strong, supported by seasonal consumption, café chain expansion, and rising interest in specialty brews.
• However, price sensitivity among consumers may temper growth in lower-income segments.
• The Price Forecast for Q4 suggests a continued upward bias, especially if weather-related disruptions persist in Latin America.
• Retailers may adjust pricing strategies to balance margins and consumer affordability.
Why did the price of coffee change in September 2025 in North America?
• In September 2025, coffee prices increased due to global supply disruptions, particularly in Brazil and Indonesia, where adverse weather and El Niño effects reduced output.
• This led to lower inventories and higher import costs, pushing up Spot Prices across North American markets.
APAC
• In Vietnam, the Coffee Price Index fell by 7.9% quarter-over-quarter, due to strong harvests and ample global supply.
• The average Coffee price for the quarter was approximately USD 4212/MT, based on regional quotations.
• Coffee Spot Price softened as regional supplies remained comfortable and demand cooled in APAC markets across Southeast Asia.
• Price Forecast for Coffee remained cautious amid rising inventories and policy shifts, supporting the overall Price Index trend.
• Production Cost Trend faced pressure from energy, fertilizer costs, and logistics, narrowing producer margins and affecting pricing strategies.
• Demand Outlook is mixed; export momentum remains robust, but domestic consumption in APAC shows a softening trajectory.
• Price Index movements reflect currency fluctuations, freight costs, and regulatory tightening impacting Vietnamese coffee pricing competitiveness.
• Export activity supported by favorable harvests, yet Europe demand softness and sustainability rules shaped trade flows.
Why did the price of Coffee change in September 2025 in APAC?
• Vietnam benefited from larger harvests and favorable monsoon conditions, boosting supply growth and pressuring prices.
• Currency volatility and freight costs weighed on export margins, elevating perceived price risks for buyers.
• Policy changes such as VAT and trade regulations influenced domestic pricing, supplier flexibility, and overall demand sentiment.
Europe
• The Price Index for coffee in Europe increased during Q3 2025. This was driven by tight global supply, particularly from Brazil and Vietnam, and sustained demand from both at-home and out-of-home consumption channels.
• The Production Cost Trend remained elevated due to rising labor and logistics costs in exporting countries.
• European roasters faced higher input costs, particularly for specialty grades, which impacted margins and retail pricing strategies.
• The Demand Outlook for Q4 2025 remains strong, supported by seasonal consumption, café expansion, and rising interest in premium and sustainable brews.
• However, price sensitivity among consumers may limit growth in lower-income segments.
• The Price Forecast for Q4 suggests a continued upward bias, especially if adverse weather persists in Latin America and Southeast Asia.
• Retailers may adjust pricing strategies to balance cost pressures and consumer affordability
Why did the price of coffee change in September 2025 in Europe?
• In September 2025, coffee prices increased due to weather-related disruptions in major producing regions, including hail damage in Brazil and drought conditions in Southeast Asia.
• These factors reduced export volumes and pushed up Spot Prices across European markets.
South America
• In Brazil, the Coffee Price Index fell by 10.13% quarter-over-quarter, reflecting downward pressure from new harvest and oversupply.
• The average Coffee price for the quarter was approximately USD 6219.33/MT, amid global inventory rebalancing.
• Coffee Spot Price remains under pressure as harvest flows increase through the June peak.
• Coffee Price Forecast remains cautious amid weather and demand shifts as producers adjust to tariff and policy headwinds.
• Coffee Production Cost Trend shows rising freight and labor costs as transport disruptions and energy prices add pressure.
• Coffee Demand Outlook remains mixed but generally supported by consumption growth in emerging markets and steady domestic demand.
• Coffee Price Index remains volatile as price discovery fluctuates with harvest cycles and regulatory changes.
• Inventories in major hubs remain steady, limiting near-term upside despite ongoing harvest pace and export activity.
• Export demand from Brazil faces regulatory headwinds and currency volatility, affecting pricing and shipment timing across key markets.
Why did the price of Coffee change in September 2025 in South America?
• Abundant harvest arrivals increased supply, pressuring prices despite ongoing weather risks in September 2025.
• Tariff policy shifts and currency volatility constrained demand, limiting price support.
• Logistics bottlenecks and export delays kept prompt buyers cautious.
For the Quarter Ending June 2025
North America
• The Imported Coffee Spot Price in North America declined modestly over Q2–July 2025, with additional downward pressure noted in July due to easing market conditions.
• Global supply strength—highlighted by improved harvests in Brazil and Vietnam—helped stabilize futures, with Arabica prices dipping to multi-week lows and Robusta also softening.
• Domestic consumption remained robust overall—about 66% of Americans drink coffee daily, and specialty coffee consumption hit a 14-year high—but this did little to offset wholesale price softness.
• Cost pressures at retail remain significant: food inflation nears 3%, with coffee product costs rising over 13% year-over-year, while wholesale bean prices have fallen.
• Tariff concerns and trade uncertainty—such as the proposed U.S. 50% tariff on Brazilian imports set for August—prompted forward buying in June, followed by a lull in July as buyers exercised caution.
Why did the prices of Coffee change in USA in July 2025?
• In July 2025, wholesale coffee prices softened, reflecting a combination of supply stability and demand caution.
• Improved supply forecasts and swelling stock levels undercut speculative rallies, reducing momentum behind futures price spikes
• Meanwhile, fears of pre-tariff stockpiling have subsided, leading to moderation in immediate market enthusiasm.
APAC
• The Vietnam Robusta Coffee Spot Price in Asia exhibited a two phase pattern over Q2 2025: a notable uptick in April followed by a steady decline in May and June.
• April’s rise was driven by below average rainfall in Brazil (tightening global supply expectations), appreciation of the Brazilian real, and strength in Robusta futures.
• From May onward, the arrival of Vietnam’s new crop—aided by renewed farmer investment, mechanization, and favorable Central Highlands weather—expanded output by an estimated 7%, creating a local and global supply surplus.
• Export volumes fell sharply in April and May (down over 27% YoY in April and 33% in May), reflecting soft international demand, though June saw mixed performance as some markets regained interest.
• Macroeconomic and geopolitical factors—including U.S. import tariffs, currency swings, and evolving trade policies—added to market caution, leading buyers to delay purchases amid uncertain near term fundamentals.
Why did the prices of Coffee change in Asia in July 2025?
• In July 2025, robusta coffee prices in Asia continued their fall, mirroring a broader regional trend.
• Vietnam’s robusta harvest surged: early-season rainfall in the Central Highlands boosted output, with a projected 7% increase in 2025/26 yields.
• Exporters and international buyers stayed cautious amid economic and policy uncertainties.
Europe
• Imported Coffee Spot Prices across Europe softened in July 2025, building on a late Q2 dip after reaching multi-month highs during earlier weather concerns.
• European coffee stocks remain near multi-decade lows despite declining prices, reflecting a slowdown in imports since early 2025.
• Supply-side factors include global production tightness—especially in Brazil and Vietnam—though Europe’s relative independence from weather disruptions has muted immediate price shocks.
• Demand trends are mixed: sustained demand for specialty and premium coffee supports some resilience, but widespread cost-of-living pressures are causing cautious consumer behavior.
• EU regulatory uncertainty, especially the new deforestation-free import rules set to take full effect in 2025, is reshaping sourcing strategies. Germany’s major roasters are preparing for potential supply disruptions and higher compliance costs.
Why did the prices of Coffee change in Europe in July 2025?
• In July 2025, European coffee prices, particularly Arabica, softened, continuing the correction following late-quarter peaks.
• Supply-side relief, combined with softer import demand and retail consumer resistance, has pressured European coffee prices in July.
• With EU stocks still low, prices are likely to trade within a range unless global supply tightens significantly or regulatory clarity improves.
South America
• During Q2 2025, coffee prices in Brazil showed mixed movement, beginning with a notable increase in April due to weather-related supply concerns but gradually declining through May and June as harvest activity picked up.
• The initial rise in prices was driven by below-average rainfall affecting crop prospects and a stronger Brazilian Real, which made exports more expensive. However, by May and June, the arrival of new crop volumes—despite mixed bean quality—contributed to oversupply, exerting downward pressure on prices. April 2025:
• The onset of the 2025/26 harvest was met with pessimism due to persistent dry weather in major Arabica-growing regions, with overall coffee production expected to decline by 3% YoY. Arabica faced notable challenges, while Robusta volumes were set to rise, partially offsetting supply losses.
• In May 2025 Supply-side conditions improved slightly, supported by favorable rainfall, boosting yield expectations. However, inventories remained high due to weak international demand. Export volumes to Italy and Belgium fell significantly, leading to excess domestic stockpiles despite smaller shipments abroad.
• During June 2025 Harvesting was in full swing, with a robust Robusta crop ensuring ample overall supply. Arabica quality varied—roughly 20% of the crop was deemed subpar due to earlier dry conditions. Despite improved yields in the latter half of the month, the market remained oversupplied, placing consistent downward pressure on prices.
• Demand trends were mixed. On one hand, U.S. importers faced rising costs due to newly implemented tariffs of at least 10%, reducing purchasing appetite. On the other hand, European buyers contended with new Green Deal regulations, requiring tighter sustainability and traceability standards—further complicating sourcing decisions. These policy shifts disrupted traditional buying behavior and contributed to demand-side caution despite reasonable availability.
Why did the prices of Coffee change in South America in July 2025?
• In July 2025, Brazilian coffee prices experienced a noticeable decline, despite previous concerns about supply.
• Brazil’s 2025/26 harvest progressed rapidly—by mid-July, 77% of the harvest was complete (93% of Robusta, 67% of Arabica), exceeding last year’s pace.
• With supply flooding the market, both Arabica and Robusta futures were pressured, as traders priced in the new crop influx.
For the Quarter Ending March 2025
North America
During the first quarter of 2025, the U.S. coffee market experienced constrained import activity, largely influenced by ongoing yield concerns in major producing countries such as Brazil and Colombia. Adverse weather conditions, including excessive rainfall and irregular temperature patterns, significantly impacted coffee harvests in these key regions, leading to tightened global supply. In the U.S., coffee consumption remained modest, with steady demand from retail and foodservice sectors.
Notably, the U.S. and Canada have witnessed a 16% increase in coffee’s share within the broader hot drinks category over the past three years, reflecting a sustained consumer preference for coffee over other beverages. However, despite stable demand, the market faced added uncertainty due to a lack of regulatory clarity following the imposition of tariffs on imported goods under the administration of former President Donald Trump.
These trade measures, alongside persistent supply-side pressures, contributed to cautious purchasing behavior and volatility in the domestic coffee supply chain, underscoring the market’s sensitivity to both geopolitical and climatic variables.
APAC
In Q1 2025, coffee prices in the APAC region, particularly in India, witnessed a notable upward trend due to escalating global demand and supply-side constraints. January began with strong export momentum—over 9,300 tonnes shipped—amid a growing domestic shift toward coffee consumption. However, production challenges, such as erratic rainfall, high temperatures, and declining soil moisture, especially in Tamil Nadu, weighed heavily on yields. February saw continued price surges driven by reduced output, global supply constraints, and higher input costs. Despite record-high prices, India’s coffee exports are projected to decline by over 10% due to lower carry-over stocks and crop damage. Additionally, key coffee-producing states like Karnataka, Kerala, and Tamil Nadu suffered from water scarcity and persistent heatwaves, exacerbating the supply gap. This led to rising commodity prices, prompting companies like Nestlé and Britannia to implement price adjustments. Though production for the current crop year may reach 3.5 lakh metric tonnes, robust export demand and climatic pressures are expected to sustain price firmness into March.
Europe
The European coffee market exhibited notable volatility during the first quarter of 2025, influenced by a combination of political instability, economic uncertainty, and supply-side constraints. Political reshuffles in France and Germany—the Eurozone’s two largest economies—have heightened investor and consumer concerns, as disputes between left- and right-wing parties continue to delay and complicate fiscal planning. Despite changes in leadership, several major economies across the region are still grappling with unresolved budget frameworks, with at least four countries yet to submit viable fiscal plans. These unresolved political dynamics have added a layer of unpredictability to market conditions, weighing on both investor confidence and consumer sentiment. On the supply side, European imports of coffee, particularly from Brazil, faced disruptions due to reduced yields stemming from adverse weather conditions. Heavy rainfall and irregular temperature patterns impacted harvests in Brazil, contributing to constrained availability and fluctuating prices across European markets. Overall, the European coffee sector faced a challenging quarter, shaped by both geopolitical headwinds and climatic supply disruptions.
South America
During Q1 2025, coffee prices in South America, particularly in Brazil, experienced a moderate increase, culminating in a notable rise by the end of the quarter. This upward trend was primarily driven by persistent supply-demand imbalances in the market. Severe droughts caused by the El Niño phenomenon significantly damaged coffee crops in key growing regions of Brazil, leading to substantial reductions in production and leaving typically stocked warehouses with minimal inventory. In an effort to meet global demand, Brazilian farmers resorted to costly irrigation practices, further elevating production costs and pushing prices higher. On the demand front, purchasing activity remained relatively stable, with expectations of increased domestic consumption as the Brazilian summer season approached. Despite Brazil’s coffee exports reaching a record 50.15 million bags over the year ending February 2025, February shipments declined amid tightening local stocks and concerns over future harvest yields. These supply-side constraints, coupled with steady demand, have maintained upward pressure on prices and contributed to ongoing tightness in global coffee markets.
