Why has the price of coffee in the United States increased so much in 2024?
The average cost of a cup of coffee has been rising for months in 2024 across the U.S. The main reason behind the increase is related to the environment.
The coffee market in the United States is the largest in the world, with annual revenue of $80 billion, according to Toast’s Coffee Industry Trends and Statistics for 2024 report.
According to the study, average coffee consumption in the United States is 1.87 cups of coffee per day. Although the most common place to drink coffee is at home and in the office, coffee shops play a huge role in consumption. However, cups of coffee have become more expensive.
The average cost of a cup of joe has seen an increase in recent months. According to EATER New York, a cup costs around $6 to $7 after add-ons, tax, and tip.
Meanwhile, the most recent Consumer Price Index report for the month of August indicates the price of instant coffee has increased by 3.6% in the last year. Here are the reasons for the climbing cost of coffee.
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Why has the price of coffee in the United States risen so much in 2024?
According to BBC Mundo, in 2021, “an unexpected frost wiped out coffee crops in Brazil,” which is the world’s largest producer of Arabica beans, commonly used in coffee sold in cafés.
The shortage has forced the industry to turn to other markets, such as Vietnam, the main producer of robusta beans. However, the country has faced one of the worst droughts in decades.
Will Frith, a coffee consultant based in Ho Chi Minh City, told BBC Mundo that climate change has been affecting the development of coffee plants, which in turn has affected bean yields.
Vietnamese farmers have been replacing their coffee crops with the durian fruit to increase profits from the harvest, further contributing to the shortage.
Meanwhile, coffee exporters in Colombia, Ethiopia, Peru and Uganda have increased their production, but it has not been enough to meet market demand. According to Bloomberg, coffee prices have reached record levels, so much so that farmers in Uganda have had to step up security to protect their beans from theft.