Reported by May Angel, Marcelo Teixeira, and Jessica DiNapoli, the price of coffee beans is expected to rise by up to 25% in the near future, causing concerns for consumers. Roasters like Lavazza, Illy, Nestle, and JDE Peet's are discussing with retailers about passing on the increased costs stemming from a significant surge in raw arabica coffee prices over the past year. This surge is primarily due to four consecutive seasons of deficits caused by unfavorable weather conditions hampering bean production to meet the rising consumer demand.

As roasters push for price increases, retailers are hesitant, leading to delays in signing new supply agreements, resulting in temporary shortages of coffee products on the shelves, including in Dutch supermarket chain Albert Heijn. However, the products have been restocked, albeit at higher prices, following negotiations with JDE Peet's.

JDE Peet's has faced challenges in reaching agreements with buyers in the Netherlands and Germany, resulting in some of its products not being available on the shelves initially. Despite this, the company has managed to conclude most of its price negotiations worldwide. The global prices for arabica beans, used in roast and ground coffee blends, have increased significantly this year due to adverse weather conditions in Brazil, a major arabica producer.

Expecting a price increase of 15%-25%, consumers in some markets may experience the hike in one go as raw beans make up around 40% of the wholesale cost of coffee. In countries with weakened currencies, such as Brazil, the price increases could be even steeper, affecting both consumption and production. Brazilian roaster 3 Coracoes raised roast and ground coffee prices multiple times, including a 14.3% increase in March, reflecting the challenging landscape of the coffee market.