The price of your customized coffee order—whether half-caff with soya milk, extra hot with a hint of vanilla and cinnamon—could rise this year, as coffee costs are expected to surge by up to 20%, according to Arabian Gulf Business Insight.
Industry analysts predict that the Middle Eastern coffee market alone will grow to $11.5 billion by 2025. However, climate change, escalating production costs, and inefficiencies in the supply chain are driving prices higher.
Shouq Bin Redha, exhibition director of World of Coffee Dubai, set to take place next month, warns: “The coffee industry is entering an unprecedented phase, impacting everyone from farmers and baristas to consumers enjoying their daily cup—coffee’s value is set to rise significantly.”
Arabica, one of the most widely traded coffee varieties, has experienced significant price fluctuations over the past year, ranging from $1.70 to $3.47 per pound.
Vijay Valecha, chief investment officer at Century Financial, notes that the annual volatility rate for 2024—measuring price variation over a year—reached 44%. This marks one of the highest levels seen in two decades, far exceeding the typical 28% to 30% range recorded over the same period.
