Coffee Industry Faces Price Surge and Innovation on October 7, 2025

Indomaret’s Point Coffee Launches Ready-to-Drink Line in Indonesia

Indomaret, a leading convenience store chain in Indonesia, has expanded its café brand Point Coffee into the ready-to-drink (RTD) coffee market. The new RTD coffee products include three flavours: Aren Latte with palm sugar, Golden Caramel with A2 milk, and Creamy Cappuccino also with A2 milk, all packaged in convenient plastic bottles. This move aims to broaden Point Coffee’s presence from in-store cafés to retail shelves nationwide (Minime Insights, 7 October 2025).

US Coffee Prices Reach 25-Year Highs Amid Global Supply Challenges

Coffee prices in the United States have surged to levels not seen in 25 years, driven by global market pressures including tariffs, severe weather in key producing countries like Brazil and Vietnam, and inflation. Arabica coffee futures hit a record $4.24 per pound in mid-September, while roasted coffee prices jumped over 20% year-on-year in August. Major chains such as Starbucks have raised prices, with a large hot coffee now costing about $3.25 and lattes starting at $5.25. McDonald’s McCafé remains a lower-cost alternative but is also experiencing price increases. These cost pressures reflect a complex mix of supply disruptions and market speculation (Economic Times, 7 October 2025).

Canadian Coffee Market Also Feels Bean Price Inflation

In Canada, coffee roasters and cafés are grappling with a 28% increase in coffee bean prices compared to last year. This has led major chains like Tim Hortons to raise coffee prices by an average of three cents per cup, their first price adjustment in about three years. Market volatility is attributed to climate impacts on coffee yields, tariff effects, and active commodity speculation. Industry experts expect ongoing price variability in response to these factors (Global News, 6 October 2025).

Shifts in Coffee Production and Varietal Research

Coffee growers worldwide continue to face climate change, labor shortages, and economic pressures. Research into climate-resilient coffee species such as stenophylla—found in Sierra Leone and able to tolerate higher temperatures—is underway. Other varieties like excelsa and liberica are also gaining renewed interest for their resilience. Meanwhile, robusta coffee production has expanded significantly, now representing over 45% of global production, compared to 25% in the early 1990s. These trends indicate a potential shift in coffee cultivation to adapt to changing environmental conditions (CT Public, 2 October 2025).

US Branded Coffee Shop Market Growth Slows Amid Cost Pressures

The US branded coffee shop market reached $58.5 billion, growing 4.2% to 45,277 stores, but growth has slowed due to soaring commodity prices, inflation, and tariffs. Starbucks announced plans to close hundreds of company-owned stores in September 2025. Growth is driven mainly by the drive-thru segment, with Dutch Bros leading at 1,055 stores. New entrants from China, such as Luckin Coffee and Cotti Coffee, have also entered the US market. Operators are adapting portfolios to meet evolving customer needs amid challenging economic conditions (World Coffee Portal, 7 October 2025).