A big demand from China adds another factor paying coffee to rise in 2025

The price of a cup of coffee appears on a date with more height in the new year. The major demand of China, which increases the amount of global consumption, adds another factor to the decline in production due to climatic conditions in the major producing countries, which supports expectations to continue the escalation of coffee prices in 2025 after record levels last year. Basem Hashad, an economic expert and international consultant for the United Nations Development Program, said during his participation in the “Asian report” program on the “Al -Sharq” channel that the high prices of coffee are due to both sides of supply and demand, and the shortage of supply in world markets as a result of the climatic conditions that influenced the production, raising prices to rise. Robosta coffee prices rose 60% during 2024 to be more than $ 5500 per tonne, the highest level in about half a century. The Chinese request was witness to the last decade of the Chinese mood of tea in favor of coffee, which brought the demand in 2023 to 5 million bags (each bag with 60 kilograms), which made the country the seventh largest consumer of coffee in the world, knowing that it was not among the 15 largest coffee countries. To meet this growing demand, more coffee shops have been opened for over 50 thousand stores, whether from global brands such as “Starbucks” or local signs such as “Locken Kofi”, to exceed the United States in the number of stores. Not only does the increasing consumption of coffee in China reflect a change in customs, but it opens the door for the high Chinese demand to increase the great world demand. Expectations indicate that China’s import of coffee is rising to 6.3 million bags in 2025. The climate worker This increasing demand will not be able to meet the supply, as bad weather and droughts that hit the largest producing countries lead to now offer. In Vietnam, the largest producer of ‘Robosta’ coffee in the world, the supply shortage of the Robosta pills continues, as expectations indicate that the crop does not exceed 24 million bags in 2025/2024, which is the lowest in 13 years. In Brazil, Volkafe, one of the largest coffee trade companies in the world, has reduced its prediction for the production of arbika coffee in the country in South America, after revealing an inspection tour through the crop of the ongoing seriousness of drought that hits the largest productive country in the world. The company expected Brazil to produce only 34.4 million bags of excellent “Arabica” pills in the next season, a decline of about 11 million bags compared to the September estimates, according to a “Bloomberg” offer. As a result, global coffee production is expected to see a deficit of 8.5 million bags in the 2025-2026 season, which is the fifth year in a row, in a precedent that has not taken place before. Hashad is of the opinion that the factor of extremist climatic conditions will continue its influence, not only on coffee production, but also on all strategic goods around the world, which recommends the continued rise in prices during the new year.