Drought, Potential Tariffs, Worldwide Demand - Is Coffee Still Worth It?

According to multiple sources, the prices of coffee are already at record highs, but experts continue to predict that those sky-high prices are going to increase.

Both Arabica and Robusta beans have experienced these price increases due to drought followed by heavy rain that destroyed crops (Silva, 2024). The president elect ran on imposing blanket tariffs on all imported goods, which would include coffee. The coffee market has gotten volatile, and given that my first idea to begin my fantasy experience business is a coffee cart, a question hangs in the air: Is coffee still worth it?

To me, yes. But I do have conditions.

The increase in coffee prices won't affect my desire to start roasting my own coffee for personal use. Like many coffee drinkers, I'll certainly complain about the hit to my wallet, but it won't change my coffee habits. That said, I am not one who frequently buys coffees from coffee shops, and prices rising there would certainly affect my choice between "have it now" or "make it at home".

Knowing that information, I hesitate to invest large amounts of money into the equipment needed to start a coffee cart. Instead, in anticipation of rising costs, my strategy is to research a lower overhead business and hone my coffee-roasting skills until the coffee market is more stable.

What are your predictions for coffee in 2025?

Reference:

da Silva, Joao. December 10, 2024. Coffee price surges to highest on record. BBC. https://www.bbc.com/news/articles/c36pgrrjllyo