The Strategist

Bloomberg: Increased demand for Robusta prompts rise in the price of instant coffee

05/15/2023 - 10:17

According to Bloomberg, wholesale prices for Robusta coffee beans increased to their highest level in almost 12 years.

Last week, according to Bloomberg, the price of Robusta coffee beans at wholesale levels worldwide reached its highest level in almost 12 years. The organization ascribed it to a rise in bean demand that growers haven't been able to keep up with.

Robusta is frequently used to make espresso as well as the ground coffee offered in stores and instant coffee. Coffee products are getting more expensive as a result of increased bean costs.

Despite decreasing inflation for bean coffee, instant variants are now 20% more expensive in Germany, the largest coffee market in Europe, Bloomberg reported. The agency also noted that the rate of price hikes for instant coffee in the US is decreasing more slowly than for roasted beans.

In the meantime, coffee exports are increasing, with more coffee traveling the world in the first half of this season than in the same periods in the previous three years. According to information from the International Coffee Organization, shipments from October 2022 to March 2023 were around 4% more than they were in 2021–2022, Bloomberg reports.