In the coming months, the price of a cup Coffee further rise considerably, warn Italian coffee roasters. The reason for this is the price of green coffee, which has reached a record high due to climate change and other factors.
“The coffee market remains in a highly unstable situation, as the price of green coffee continues to show extreme fluctuations and an unprecedented upward trend. Currently, green coffee costs 245 cents per pound, which is 66 percent more than last year and more than double the price three years ago. This explains why the price of a cup Coffeethat we drink in cafés has increased by 15 percent in the last three years,” says Cristina Scocchia, managing director of the Trieste-based roasting company Illycaffè.
Cultivated area could be halved by 2050
An espresso is relatively cheap in Italy compared to other countries and costs between 1 euro and 1.50 euros. Due to the rising cost of green coffee, a cup of espresso could soon cost two euros, Scocchia predicted, according to media reports. There are many complex factors behind the increase in the cost of green coffee, and by 2050 the area used for growing coffee could be halved on a global level, warned Scocchia. “We are currently experiencing extreme weather events, from torrential rains in Brazil to droughts in Vietnam, which are seriously affecting production,” explained the manager.
It is not just the climate that is affecting the coffee market. The coffee supply chain is also under pressure due to logistical problems, such as the recent blockage of the Suez Canal, which has increased costs and extended delivery times. In addition, speculation about raw materials has further exacerbated the situation.
Scocchia stressed that Illycaffè’s production costs increased by 17 percent in the 2022/2023 two-year period. However, the company has tried to limit the impact on final consumers. “At the moment we do not plan to further increase the prices of our products to help our final customers. However, if the upward trend continues, we will have to reconsider this decision,” concluded Scocchia.
Italians spend 8 billion euros per year on coffee
For Coffee Italians spend more than 8 billion euros per year, which is about 392 euros per family. Coffee-Capsules generate an annual value of 595 million euros, while mochaCoffee recorded a turnover of 640 million euros. 7 billion euros are accounted for by the business of espresso, which is drunk in cafés. The wave of price increases could affect Italians’ coffee consumption, warned the consumer protection association Codacons.
