Coffee Prices Surge Amid Brazil Cost Pressures; New Equipment and Market Trends

Brazilian Coffee Roasters Raise Prices Amid Raw Bean Cost Surge

Brazil’s leading coffee roasters, 3 Coracoes and Melitta, have implemented price increases on September 1, with 3 Coracoes raising roast and ground coffee prices by 10% and instant coffee by 7%, while Melitta increased prices by 15%. These hikes are driven by rising raw arabica bean costs, which have surged over 20% this year after a 70% jump last year due to poor crop yields from adverse weather conditions and the impact of U.S. tariffs on Brazilian coffee imports. Raw beans now account for roughly 40% of wholesale coffee costs, intensifying pressure on roasters worldwide to adjust prices accordingly. This trend follows previous increases earlier this year, reflecting ongoing volatility in supply and costs (Reuters, 3 September 2025; Japan Times, 3 September 2025).

Innovation in Coffee Machines and Equipment

Industry sources emphasize the growing integration of AI and precision technology in coffee farming and processing equipment, aimed at enhancing crop health and quality control. AI-driven tools enable better dataset analysis of consumer preferences and optimize agricultural processes, supporting the specialty coffee sector’s expansion globally. These technological advancements contribute to more resilient supply chains and improved product consistency, crucial amid rising market demands (Precedence Research, May 2025).

Market Trends and Production Outlook

Global coffee prices have experienced significant volatility, with recent declines following sharp rises. On September 2, prices fell approximately 3-4%, but remain substantially higher than last year, reflecting supply challenges and strong demand. Brazil’s 2025/26 Arabica crop is forecasted to decline by 13.6% due to drought, frost, and irregular rainfall, destabilizing global supply chains and contributing to market uncertainty. The imposition of a 50% U.S. tariff on Brazilian coffee exports has also shifted trade flows towards China, tightening global inventories. Analysts predict coffee prices could reach over 440 USD per pound within the next 12 months, driven by these supply-side constraints and structural market changes (Trading Economics, 2 September 2025; Precedence Research, September 2025; Ainvest, 2 September 2025).

Supply Chain and Consumer Impact

Roasters face increasing pressure as consumers in Brazil and elsewhere respond to price hikes by seeking bargains or switching to lower-cost supermarket brands. Industry groups project that retail prices may continue to rise following tariff impacts, challenging market players to balance cost recovery with consumer affordability. Meanwhile, the expansion of specialty coffee shops and premium blends, particularly in Europe and emerging Asian markets, supports steady demand growth despite cost volatility (Reuters, 3 September 2025; Báo Kinh tế & Đô thị, 1 September 2025).