Environmental Stress & Market Pressure in Coffee

Climate volatility is putting unprecedented strain on global coffee production. Severe droughts in Brazil and Vietnam, two of the world’s largest coffee producers, have drastically reduced yields, intensifying supply risks across the industry. These weather-driven shocks highlight the growing vulnerability of coffee to climate change.

The immediate impact has been sharp price surges. Robusta coffee, widely used in instant coffee and espresso blends, recently hit a record $5,580 per tonne, marking a 75% increase year-to-date. This surge has added pressure on roasters, traders, and consumers alike, reshaping supply chains and cost structures.

Industry leaders are already sounding the alarm. Lavazza’s CEO noted that 80% of the current coffee price increase is linked directly to climate and supply-related challenges, underlining how environmental stress is now the dominant force driving market dynamics. Unless more resilient farming strategies are adopted, volatility is likely to become the new normal in the coffee trade.