Prices Soar, Brazil's Coffee Consumption Drops 16% in April

Published 2025년 5월 26일

Tridge summary

According to the Brazilian website "G1", data from the Brazilian Institute of Geography and Statistics (IBGE) shows that coffee prices rose by 80% in the past 12 months up to April, which is the highest inflation rate in 30 years.

ABIC's data refers to retail volume, representing 73% to 78% of domestic consumption. From January to April this year, retail volume decreased by 5.13% compared to the same period in 2024, totaling 4.7 million bags (60 kg each).

Among different coffee types, instant coffee (Cafésolúvel) saw the highest price increase, with an average price rise of 85% compared to the same period in 2024. Gourmet coffee prices increased by 56%, while traditional or extra-strong coffee (Tradicional/Extraforte) prices rose by 50%. Special coffee (Especial) and Superior coffee prices also became more expensive, increasing by 42.3% and 29% respectively.

In February this year, ABIC had warned that coffee prices would continue to rise in the next two months, as the coffee industry had not yet fully passed on the cost of purchasing coffee beans.

Coffee prices rose sharply for several reasons: first, high temperatures and drought put stress on plants last year, with frost and heat waves affecting Brazil for four years. During this period, the industry's raw material costs increased by 224%, and consumer coffee prices rose by 110%.

Second, global supply shortages occurred as major producing countries like Vietnam faced climate issues and crop failures. Third, logistics costs increased: Middle East wars raised international coffee transportation costs and container prices. Fourth, consumption increased, with coffee being the second most consumed beverage globally after water. Brazilian producers expanded in new international markets, affecting domestic supply.

The Brazilian National Supply Company (Conab) issued its second estimate for the 2025 coffee harvest, signaling potential challenges: national production is expected to decrease by over 6% compared to the previous year.

Minas Gerais state, Brazil's largest Arabica coffee production region, is projected to produce over 25.5 million bags, still lower than last year's harvest.

Experts and producers anticipated the production decline, mainly due to the "negative two-year cycle", a natural

Original content

According to the Brazilian website "G1", data from the Brazilian Institute of Geography and Statistics (IBGE) shows that coffee prices have risen by 80% in the past 12 months up to April, the highest inflation rate in 30 years. ABIC's data refers to retail volume, which accounts for 73% to 78% of domestic consumption. From January to April this year, retail volume decreased by 5.13% compared to the same period in 2024, totaling 4.7 million bags (60 kg each). Compared to the same period in 2024, instant coffee (Cafésolúvel) saw the highest price increase, with an average price rise of 85%. Gourmet coffee prices increased by 56%, while traditional or extra-strong coffee (Tradicional/Extraforte) prices rose by 50%. Special coffee (Especial) and Superior coffee prices also became more expensive, increasing by 42.3% and 29% respectively. In February this year, ABIC warned that coffee prices would continue to rise in the next two months, as the industry had not yet fully passed on the ...
Source: Foodmate

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