Global Coffee Prices Surge as London Lattes Near £5 and US Roasted Coffee Jumps 17%
Updated
Updated · bbc.co.uk · May 28
Global Coffee Prices Surge as London Lattes Near £5 and US Roasted Coffee Jumps 17%
3 articles · Updated · bbc.co.uk · May 28
Large coffees in central London now approach £5, while even smaller drinks have pushed well past the old £4 threshold as cafes absorb higher bean, shipping and operating costs.
Arabica climbed above $4 a pound last year and still trades near $3.08 after Brazil frost damage and Vietnam's drought and typhoon hit the two key bean markets.
Trade and logistics shocks amplified the squeeze: Trump's tariffs once hit Vietnam at 46% and Brazil at 50%, and Red Sea diversions have added roughly 4,000 miles to some shipments to Europe.
US consumers have felt the sharpest supermarket impact, with roasted coffee up 17% and instant coffee 25% year-on-year to March; a ground coffee bag that cost $4.30 in 2020 now costs $9.61.
Demand has stayed resilient despite the surge, and producers expect prices to remain sticky for at least a couple of years unless Brazil and Vietnam deliver two strong harvests.
As climate change degrades coffee, are we destined to pay more for a worse-tasting brew?
With Arabica's future at risk, which nations will dominate the next generation of coffee production?
Can automation and new tech save our daily coffee from the perfect storm of global crises?
2026 Coffee Price Spike: How Climate Shocks and Trade Wars Are Brewing a Global Supply Chain Crisis
Overview
As of May 2026, coffee prices in the United States have climbed sharply, with the average price for roasted specialty coffee reaching $32.75 per pound and the lower-priced segment rising by 9.3% over the past year. This surge is driven by severe weather events that disrupted major coffee-producing regions, leading to global supply fluctuations and significant surpluses and deficits. As a result, certain segments of the coffee market have seen inflation rates far outpace general grocery items, causing noticeable price swings in both retail and restaurant coffee. Ultimately, these rising costs are placing a greater financial burden on consumers.