At Lavazza Professional, we understand that coffee is more than just a drink. It’s a daily ritual, a moment of connection, and a valued workplace perk. Since the start of the year, coffee prices have continued to change at unprecedented rates, reaching record highs in February and April 2025. In this article, will find more information on the global forces shaping the cost of coffee.

The Global Coffee Market: What’s Driving the Surge?

Coffee prices in the UK have reached record highs — and while inflation plays a role, the reality is far more complex. The chart below shows how the price has fluctuated over the past 20 years. Data from macrotrends.net. 

Here are the key factors influencing the cost of coffee:

1. Climate Change and Crop Disruption

Major coffee-producing countries such as Brazil and Vietnam have faced severe weather events, including historic droughts and erratic rainfall. These conditions have significantly reduced crop yields, pushing Arabica prices up by over 80% and Robusta by 92% year-on-year.

2. Logistics and Currency Challenges

Global shipping disruptions, including delays through the Suez Canal, have driven freight costs to unprecedented levels. Additionally, as coffee is traded in US dollars, a weaker pound has further increased import costs for UK suppliers.

3. Rising Global Demand

Coffee consumption is booming in emerging markets like China and India, adding pressure to already tight global supply chains. Meanwhile, the UK’s love for coffee continues to grow. It has now overtaken tea as the nation’s favourite hot drink.

4. Labour and Production Costs

Coffee farming is labour-intensive, and producers are facing rising costs for fertiliser, fuel, and equipment, alongside labour shortages. These challenges are particularly acute for smallholder farms – the backbone of the specialty coffee industry.

Lavazza Group, through the Lavazza Foundation, supports over 180,000 coffee growers across 20 countries, helping to build more resilient and sustainable farming communities.

5. The Impact on UK Businesses

According to Which?, some instant coffee prices have increased by up to 40% in the past year. Even high street coffee prices have surged. A cappuccino that cost £2.45 in 2019 now averages £4.05 without a subscription.

Despite these pressures, coffee remains one of the most appreciated commodities by consumers in business and retail. Our research shows that 95% of employees feel happier working for a company that offers small perks, and 87% believe employers should provide free, high-quality coffee at work. Whilst 80% of the UK population visit coffee shops weekly.

Our commitment to our customers

Whilst the coffee market continues to face extreme conditions, we remain committed to supporting businesses with tailored solutions, expert advice, and premium coffee experiences that continue to deliver value.

If you’d like to implement a coffee solution in your business, we’d love to discuss how a partnership with Lavazza Professional could be the best choice for you. Complete the form below to arrange a free call back from your local expert.