Coffee Prices Set to Drop: Peak Reached

Discussing coffee prices over a cup has become a daily routine for coffee-loving people. But now, the trend is reversing, believes analyst Torbjörn Iwarson, as reported by Dagens industri.

A package of coffee costing around 100 kronor has quickly shifted from an unthinkable nightmare to a daily reality.

Since 2021, the price of coffee beans has nearly quadrupled due to inflation and poor harvests caused by drought.

The fact that coffee has started to gain ground and challenge the historically more popular tea in China is also cited as a reason for the price surge.

In February this year, the price was at a record high, and since then, prices have begun to decline somewhat. Independent commodity analyst Torbjörn Iwarson does not believe the peak will be surpassed for many years, he tells Di.

The high prices have attracted new growers, the economy is slowing down, and falling oil prices are some of the reasons why Iwarson predicts a cheaper coffee year in 2026.

– Commodity prices fluctuate around long-term production costs. And from that perspective, coffee is far too expensive now, he tells the newspaper.

The World Bank's commodity economists believe that the price of the most common coffee bean, Arabica, will drop by over 15 percent by 2026, writes Di.