Why coffee is getting more expensive - and what that means for you
Dear PASSENGER customers
It's time to inform you about the price explosion on the coffee market, what's behind it and what consequences it has for us as a roastery, but also for our café and in the end of course your cup of coffee.
The price for coffee reached a historic all-time high in February this year and it is lingering around on a high level since. It is unlikely the price will return to the former standard in the near future. It is more likely that there will be long-term changes in the market.
The reasons for the rise are complex, but the fundamental logic driving the price of coffee is that of supply and demand. In recent years, demand has not been met by the yields from the annual harvests and coffee warehouses around the world have gradually been bought out. They are now exhausted!
In addition, a combination of different events caused the price explosion that started rolling in November 2024. Above all, it was the harvest forecasts from Brazil. The first forecasts for crop yields are published there in November and the flowering level for the coming harvest is foreseeable. Both showed a clear downward trend and thus the upward trend in the coffee price began:
The causes of the price increase
1. Climate change and extreme weather conditions
In key growing countries such as Brazil and Vietnam, extreme weather events, including droughts, unusually heavy rainfall and extreme temperatures, have led to significant crop failures.
PASSENGER is working with green coffee traders and agronomists in critical growing areas who are driving key initiatives to empower farmers and the land and crops, prepare for change and counteract impacts on this scale.
2. Rising demand
Global coffee consumption is growing steadily, especially in countries such as China and India. This increased demand meets with limited supply and is driving prices further upwards.
3. Logistical Challenges
Global supply chain issues, including high transportation costs and port congestion, have impacted the availability of coffee and led to additional costs (Red Sea Crisis and aftermath of Corona.
4. Speculation on the commodities markets
Uncertainty about future harvests and market conditions has led to increased speculation and heightened price volatility. Donald made sure to add a good amount of uncertainty on top of it all.
And now what?
So there is a lot of excitement along the entire supply chain and producers are waiting for the cash flow to invest and increase production as quickly as possible, which should ultimately calm the market. However, demand has become so out of kilter with supply that it will probably take a few years, even under good conditions, before a stable situation is restored and inventories are sufficiently stocked to contribute to price stability.
However, the previous situation is not desirable and PASSENGER welcomes an increase in costs in the market segment of commercial coffee, even if the effects also represent a challenge for us.
Perspective
The price of coffee was far too low in the past. Growing coffee is incredibly hard, time-consuming, risky and costly work. The poor conditions for producers have meant that there are fewer and fewer coffee farmers. Those who continued to produce did not have sufficient financial resources to reinvest in their farms and infrastructure, which meant that quantity and quality suffered and improvement was not possible. At the same time, there have never been so many programs and initiatives that focus on improving sustainability, social and cultural conditions and environmental responsibility.
The current situation reinforces PASSENGER's position of supporting sustainable cultivation and trade at all costs, working with smaller companies and negotiating directly with producers wherever possible.
Accordingly, the effects of the market situation on our purchase price are not as blatant as in the C-price segment.
This is because a good bond, top prices for the qualities that have already been paid for some time and constantly intensified contact with traders and farmers have given us an advantage and the price increase for roasted coffee is relatively small.
Best regards from the roastery
Jan and the PASSENGER Crew
ONE EASY PIECE | Changing the habit - one cup at a time.
Since May 1st, we’re adding a 30ct charge for to-go cups.
Not because we love annoying fees, but because something has to change.
Summer in a glass: our new Cold Brew
The sun is rising higher, the days are getting longer and the air is humming with anticipation of the warmth. It's cold brew season again.
(No) extra charge for (Oat) milk!
PASSENGER serves you a universe of coffee in your cup - without compromise. We waive the usual surcharge for milk alternatives!
Subscriptions are free of shipping costs from the second delivery onwards
News from the delivery front: The journey of coffee - from the bean to your cup - is a real adventure of love.
Concentrated sunshine
Caffeine is a psychoactive substance which, in the right dosage, can have a stimulating effect on the consumer's perceptual apparatus.<>nehmungsapparat des Konsumierenden auswirken kann.
PASSENGER coffee subscription
Unlock a universe of coffee in your cup with passenger coffee's subscription!
Timor-Leste Laclo Natural
Timor-Leste Laclo Natural – some wild gourmet fix.
Queer Aid Uganda x passenger coffee
We are happy to finally were able to conclude our donation into the emergency fund for the LGBTIQ+ community in Uganda. Thank you for drinking our Uganda Filter coffee and help to collect 742€.
Morning again, Mexico, here we go!
from the Union San Pedro cooperative. The cooperative represents about 200 small farmers from the region around San Pedro de Alto and is an impressive, exemplary undertaking for an initiative that emerged from a collectivist, indigenous network.
What is PASSENGER blend2?
blend2 is by no means a second choice, in fact for many passengers it is the ultimate. Blend2 is simply the 2nd espresso blend we have created. A tribute to our roots...