Coffee drinkers may soon see their morning treat become more expensive as the price of coffee on international commodity markets has hit its highest level on record.

On Tuesday, the price of Arabica beans, which account for the bulk of global production, topped $3.44 a pound (0.45kg), having risen more than 80% this year. Meanwhile, the cost of Robusta beans hit a new high in September.

This comes as coffee traders expect crop yields to be reduced after the world’s two biggest producers, Brazil and Vietnam, were hit by bad weather and the drink’s popularity continues to grow.

One expert told the BBC that coffee brands were considering raising prices in the new year.

While major coffee roasters have been able to absorb price increases in recent years to keep customers happy and maintain market share, that looks set to change, according to Vinh Nguyen, chief executive of Tuan Loc Commodities.

“Brands like JDE Peet (owner of the Douwe Egberts brand), Nestlé and all of them, [previously] have been affected by rising commodity prices,” he said.

“But right now they are almost at a tipping point. Many of them are considering a price increase in supermarkets in [the first quarter] of 2025.”

At an investor event in November, a senior Nestlé executive said the coffee industry was going through “challenging times” and admitted his company would have to adjust its pricing and packaging sizes.

“We are not immune to the price of coffee, far from it,” said David Rennie, Nestlé’s director of coffee brands.

Drought and heavy rain

The last coffee record was set in 1977, after a rare snowfall devastated plantations in Brazil.

“Concerns about the 2025 crop in Brazil are the main driver,” said Ole Hansen, head of commodity strategy at Saxo Bank.

“The country experienced its worst drought in 70 years during August and September, followed by heavy rains in October, raising fears that the flowering crop could fail.”

Brazilian coffee plantations, which produce mainly Arabica beans, are not the only ones affected by the bad weather.

Supplies of robusta are also expected to be reduced after plantations in Vietnam, the largest producer of that variety, also suffered from drought and heavy rains.

Coffee is the world’s second most traded commodity in terms of volume, after crude oil, and its popularity is increasing. For example, consumption in China has more than doubled in the past decade.

“Demand for this product remains high, while inventories held by producers and roasters are at low levels,” said Fernanda Okada, coffee price analyst at S&P Global Commodity Insights.

“The upward trend in coffee prices is expected to persist for some time,” she added.