Coffee Corner: 2025 in Coffee Headlines
Despite a turbulent year in the global coffee industry, reports from CAMA Members have been of increased demand and fast expansion in the OCS sector. Changing consumer habits, crop yields, and alternate exports have dominated reporting in 2025, but now that we can look back on one of the most uncertain years since the pandemic, has a bigger picture emerged? Let’s look at the headlines:
- Record high prices with even more increases on the horizon.
Coffee prices have surged significantly, with coffee prices up by 28% in August compared to the same time last year, leading to price hikes at popular chains like Tim Hortons.
In the US, ground roast coffee in the reached $9.14 per pound in September; adjusting for inflation this is still short of the spikes seen in 1986 and 1994, but still represents a 50% increase in the last decade.
One of the buzzwords of 2025, tariffs have been a sizeable factor. Although the US government recently relaxed the 40% tariff on exports from Brazil, both the sudden changes to global trade agreements and the resulting “elbows up” buy-Canadian push here at home have forced the industry to reconsider supply chains, partnerships and public perception.
- Climate impacts for the necessary harvest conditions.
Coffee needs stable, consistent climate conditions. Although there is variation between the different types, generally a moderate tropical climate at altitude. Most major harvests exist in the "bean belt," which lies between the Tropic of Cancer and the Tropic of Capricorn.
Extreme weather conditions in major coffee-producing countries, particularly Brazil and Vietnam, have severely impacted coffee supply. Droughts and heavy rains have disrupted harvests, leading to reduced production.
Brazil, the world's largest coffee producer, has seen its reserves dwindle, contributing to the price increases.
- Consumer behaviour is changing.
Many consumers are adjusting their coffee consumption habits due to rising prices. Some are opting for home brewing instead of purchasing coffee from cafes. Plus, with potentially huge markets like China seeing demands for coffee grow, competition for international buyers is on the rise.
The trend towards specialty coffee continues, with a growing interest in unique flavours and ethically sourced beans. A focus on health and wellness is also growing - recent studies highlighting coffee's protective effects against liver disease further promote its health benefits among consumers.
- Innovations in the coffee industry practices are developing alongside consumer behaviour.
New brewing techniques and health-focused beverages, including coffee infused with vitamins and adaptogens, are responding to consumer trends in wellness and the demand for specialty coffees.
Sustainability, in the form of on eco-friendly packaging and practices in coffee production and distribution, has demanded significant investment in the industry to keep up with changing legislation and more public awareness.
Overall, what picture does this paint for coffee going into 2026? The likelihood of an immediate future where demand outpaces supply, prices continue to rise and operators in the OCS industry will be balancing the costs of business in both traditional and specialty coffee markets. Coffee is ingrained into our collective consciousness so the odds are that demand will continue to grow. Industry operators that are able to navigate the troubled waters of global supply and adapt to the rise of new brewing technologies might just be facing a very busy new year.
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