London Daily

Focus on the big picture.
Wednesday, Nov 12, 2025

Coffee bean shortage starts to bite

Coffee bean shortage starts to bite

As arabica prices soar, quality could suffer as more roasters consider using cheaper robusta
Coffee snobs have a lot to worry about right now. A global shortage of beans is already threatening to push up prices at cafes and supermarkets. Now, your morning cappuccino or latte might start leaving a bitter taste for other reasons too.

The world is facing a desperate shortfall of arabica coffee, the variety that gives the smoothest flavour and makes up about 60% of world production. Supplies were decimated after extreme weather destroyed crops, and with a La Nina pattern forecast through early 2022 expected to further hurt yields, it could take years for the market to recover.

Arabica prices are surging to reflect the mounting crisis, while global shipping congestion is making it even harder to get beans where they are needed.

“This is not just a short-term issue,” said Kona Haque, head of research at the global commodity trader ED&F Man in London. “It’s actually something that we’re going to be factoring in for the next couple of years.”

Coffee roasters and retailers must now decide whether to increase their own prices. But they’ve got another option too: arabica’s harsher cousin, robusta. Some are already using more of the cheaper variety, which is typically drunk in instant coffees and contains more caffeine that gives it a bitter flavour.

The crisis has its roots in Brazil, the world’s main supplier of arabica, where once-in-a-generation frosts followed droughts to wreak havoc on the crops. Crucially, it’s not just the current harvest that farmers have to worry about, some have been “stumping” or removing badly damaged trees; newly planted ones will take several years to mature. On top of that, they’re also grappling with surging costs for fertilisers and labour shortages.

Arabica bean prices have spiked by about 80% this year. While researchers and analysts are still busy surveying the remnants of Brazil’s damaged coffee harvest, the reports so far are not encouraging.

In the meanwhile, just about everyone in the supply chain is scrambling for beans.

“We have a lot of customers who don’t usually buy from us buying bigger quantities and different origins than what is normal,” says Joanne Berry, head of sourcing and procurement at Tropiq, a Norwegian company that buys high-grade, specialty coffee for roasters around Europe. “We have disproportionate demand, I think, because of the general lack of supply.”

While robusta prices have also risen this year, they have lagged the gains by arabica and are less than half the price. That makes it increasingly tempting for roasters to use more in their products.

Some cafes and brands focus exclusively on one or the other variety, but many use a blend of both to create a specific taste. Arabica is sweeter and typically used in drinks like cappuccinos and lattes, robusta has traditionally been popular in Italy for espresso or freeze-dried for use in instant coffee.

Both varieties have been caught up in the logistics snarl-ups that are gripping the world at the moment. Coffee is shipped in containers, and a global shortage has restricted exports of millions of bags to demand epicentres such as the United States, Japan and Europe.

Vietnam, the biggest exporter of robusta, is expecting a second bumper crop this year, but freight holdups mean exporters are struggling to ship the beans out. Still, unlike arabica, traders know that it’s just a matter of time and the robusta will hit the market eventually.

Of course, many brands and cafes will be reluctant to risk alienating customers by changing blends and flavour profiles. In a small and rough poll of premium coffee stores in the City of London this week, all the staff that Bloomberg spoke to were adamant that there were no plans to add robusta to their mix.

Any switching that does happen globally is likely to be slow, though some roasters in Brazil are already making the change.

Either way, it’s looking increasingly likely that coffee retail prices are set to rise.

Roasters from Nestle to Israel-based Strauss Group Ltd have already flagged that the increased price will eventually be transferred to end-consumers, another example of inflation in the post-pandemic economy. It’s not just coffee bean costs that have risen, said Haque of ED&F Man.

“Coffee roasting companies are also facing higher labour costs and energy bills,” she said. “And because inflation is already being flagged, I think consumers can be almost certain of what’s going to happen.”
Newsletter

Related Articles

0:00
0:00
Close
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
×