What's happened
Rising coffee costs in the U.S., up 18.3% in January and 47% over five years, are prompting Americans to cut back on café visits, switch to cheaper options, or quit coffee altogether. Climate issues and import costs are key factors behind the price surge, impacting daily routines nationwide.
What's behind the headline?
The sustained rise in coffee prices signals deeper economic and environmental shifts. Climate extremes are reducing crop yields, leading to higher costs and supply instability. Consumers are responding by reducing their consumption, switching to cheaper alternatives, or forgoing café visits altogether. This shift could accelerate the decline of traditional coffee culture and push demand toward lower-cost or home-brewed options. The industry’s resilience depends on adopting climate-adaptive farming practices, such as agroforestry, which can restore shade cover, improve soil health, and support biodiversity. These measures will be crucial to maintaining supply and stabilizing prices in the face of ongoing climate change. The broader economic impact includes potential shifts in import policies and increased consumer awareness of sustainability issues, which may influence future market dynamics.
What the papers say
The Independent reports that rising coffee prices, up 18.3% in January and 47% over five years, are causing consumers like Chandra Donelson and Liz Sweeney to cut back or change their habits. The article highlights how climate issues and import costs are key drivers of this trend. AP News echoes these points, emphasizing the economic strain and behavioral shifts among coffee drinkers. Both sources note that despite steady overall consumption, individual habits are changing due to cost pressures. Meanwhile, The Japan Times discusses how inflation and higher cocoa prices are affecting gift-giving behaviors, illustrating broader impacts of rising commodity prices on consumer spending. Al Jazeera provides context on how climate extremes in cocoa-producing regions threaten future supplies, linking environmental degradation to economic volatility. The convergence of these reports underscores a global pattern: climate change and economic factors are reshaping consumer habits and supply chains across multiple commodities.
How we got here
Over recent years, global coffee prices have increased sharply due to climate-related crop failures in key producing regions like Brazil, Vietnam, and Indonesia. Tariffs were temporarily imposed but later removed, yet climate change continues to threaten yields. As coffee is mostly imported, these factors have driven prices higher, affecting consumer habits in the U.S., where two-thirds of Americans drink coffee daily.
Go deeper
Common question
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Why Are Coffee and Cocoa Prices Rising?
Rising prices for coffee and cocoa are making headlines worldwide. But what's behind this surge, and how does it affect consumers and farmers? From climate change impacts to market shifts, explore the key reasons driving these price increases and what they mean for your daily cup and chocolate bar. Below, find answers to common questions about this ongoing crisis and what might come next.
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How Is Climate Change Causing Food Prices to Rise?
Climate change is having a profound impact on global food prices, especially for staples like coffee and cocoa. Rising temperatures, droughts, and unpredictable weather patterns are disrupting supply chains and agricultural yields. This page explores how climate change is driving up food costs, what farmers are doing to adapt, and what consumers can expect in the future. If you're wondering why your coffee or chocolate is getting more expensive, read on to find out more.
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