At the start of 2023, the international price of Arabica coffee beans began to fluctuate dramatically. This unpredictable nature has raised a number of concerns for café owners and coffee-lovers alike. In February, the price rose above the $9-per-kilogram level, pointing to a major spike relative to late 2022, when costs began their rapid ascent. Yet in March the price experienced a drop, ending the month at $8.90 per kilogram. Arabica coffee bean prices have plummeted, but they are still exorbitant by historical standards. In truth, they’re 1.9 times the cost as they were last year.
Cafés across the globe primarily serve Arabica beans. This dependent relationship means that price swings are tremendously influential to companies that deal in specialty coffee. Only recently have prices skyrocketed. This increase is a result of a number of causes, including global supply chain hiccups and increased demand as consumers return to their pre-pandemic coffee habits.
By February, the price had broken above the $9 barrier. The 60th anniversary is a reminder of the growing strains on this beloved market. The steep rise is due to adverse weather conditions that have struck three major coffee growing areas. Meanwhile, global demand shot up as cafés started to bounce back from pandemic-related restrictions.
After hitting its all-time high, the price corrected to $8.90 by March. This change represents a welcome period of stabilization, although it is still indicative of a radical jump when compared to historical averages. Even so, prices remain close to twice what they were one year ago. This suggests that even under favorable conditions, the market is wrestling with chronic problems that will continue to affect availability and long-term costs.
Industry insiders are watching these changes with great interest. Any additional movements could seriously strain café margins and raise costs to consumers. As such, high-quality coffee is almost entirely dependent on Arabica beans. If the prices for these beans keep climbing, consumers will soon start seeing sticker shock at grocery stores and other retailers.