Coffee Market Faces Tariff Shocks, Gen Z Trends, and Supply Dynamics in August 2025

Tariff Impacts and Price Movements in Global Coffee Markets

On August 7, 2025, Arabica coffee futures dropped 1.77% and Robusta futures declined 0.53% following the U.S. imposition of a 50% tariff on Brazilian coffee imports effective August 6, raising concerns over supply disruptions (CoffeeBI, 2025-08-10). Discussions continue around possible exemptions for Brazilian coffee, with speculation that former U.S. President Trump might grant relief, which has influenced market fluctuations (IndexBox, 2025-08-01). Meanwhile, Brazil’s coffee harvest progress stands at 84% overall, with robusta nearly complete at 96%, but low rainfall in Minas Gerais could affect future arabica yields (Qahwa World, 2025-08-07). Arabica stocks tracked by ICE reached a 14.5-month low, signaling tight supply, whereas robusta inventories increased to a one-year high, exerting bearish pressure (Qahwa World, 2025-08-07).

Robust Growth and Demographic Shifts Fuel Coffee Market Expansion

The global coffee market is robust, with at-home coffee revenue expected to reach USD 96.45 billion in 2025 and out-of-home revenue projected at USD 376.7 billion, totaling an estimated USD 473.1 billion globally (GourmetPro, 2025-05-27). Growth is driven by younger consumers such as Gen Z, who start coffee consumption earlier and seek diverse coffee formats and personalized experiences (GourmetPro, 2025-05-27; Tastewise, 2025-07-07). Emerging markets in Eastern Europe, the Middle East, and Asia are rapidly developing café cultures, contributing significantly to market expansion (GourmetPro, 2025-05-27).

Gen Z Drives Sustainability, Innovation, and Functional Coffee Trends

Gen Z consumers are reshaping coffee consumption with a strong emphasis on sustainability, convenience, and wellness. Sustainability remains a core expectation, with cafés adopting reusable and compostable materials and transparent sourcing practices that emphasize traceability and community support (Drink Ripples, 2025-07-02). Functional brews infused with adaptogens, mushrooms, collagen, and vitamins are gaining mainstream popularity, appealing especially to Gen Z’s interest in cognitive and immune health benefits (Tastewise, 2025-07-07; Drink Ripples, 2025-07-02). Digital-first ordering and customizable options align with Gen Z’s demand for personalized, tech-enabled coffee experiences (GourmetPro, 2025-05-27; Tastewise, 2025-08-11).

Long-Term Market Outlook and Technological Innovations

The coffee market is projected to grow steadily, reaching approximately USD 381.52 billion by 2034, with a CAGR of 4.52% from 2025 to 2034. Europe remains a dominant region, holding 34% market share in 2024, driven by high-quality specialty coffee consumption and expanding specialty coffee shops (Precedence Research, 2025-08-11). Artificial Intelligence technologies are increasingly adopted to optimize crop health and predict quality, supporting sustainable production and meeting evolving consumer preferences (Precedence Research, 2025-08-11).

Disclaimer: This press review reports data and trends from third-party published sources. CoffeeBI is not responsible for the accuracy of the figures or the content of the original articles. For further insights or tailored analysis on the topic, feel free to contact CoffeeBI.