The price of a daily cup of coffee has skyrocketed, and unlike post-pandemic inflation in other sectors, these costs are structural and permanent.
The climate crisis
Arabica beans, which make up the majority of premium coffee, require specific altitudes and stable temperatures. Unpredictable frosts in Brazil and droughts in Vietnam have decimated global yields, pushing commodity prices to record highs.
The labor shortage
Coffee harvesting is intensely manual. As rural populations in coffee-producing nations migrate to urban centers, finding skilled pickers has become significantly more expensive for farm owners.
The robusta shift
To maintain profit margins, major roasters are quietly replacing delicate Arabica beans with hardier, cheaper Robusta beans in their blends. Consumers are paying more for fundamentally lower-quality coffee.