Why coffee is getting more expensive

Store prices

The price of coffee has increased sharply on the global market, prompting Migros to raise its sales prices for coffee by about 5-10% in all categories. Even so, the price of capsule products have risen less sharply because coffee accounts for a smaller proportion of the production costs compared to the packaging.

The price at restaurants

In mid-February, the price of a cup of coffee at the restaurants of most Migros cooperatives will be increased slightly to CHF 3.70. Rainforest Alliance-certified beans are used for all coffee-based drinks. At the Zurich cooperative, which only uses organic Max Havelaar coffee, the price will increase to CHF 3.90.

Prices on the global market

Global coffee prices have been climbing steeply since November last year. This is mainly due to developments in Brazil, which produces 40% of the coffee sold worldwide. The market therefore reacts nervously to changes in this South American country.

From September to November, the weather was too hot and dry in various coffee-growing regions of Brazil. As a result, the forecasts for the 2025 harvest, which begins in May, had to be revised downwards. This in turn drove prices skyward.

What's different this time around?

The global market's reaction to the supply situation in Brazil isn't unusual. What makes the current situation extraordinary is that the price of coffee had already been climbing for several months prior to the negative reports from Brazil.

This is because annual consumption has always been slightly higher than production, leading to a drop in global green coffee reserves. That makes commodity markets anxious about negative news. The price of coffee thus looks set to remain at a higher level for some time.

Coffee shortage

Global coffee production volumes aren't actually falling. However, demand is rising because many emerging industrialised nations, like China, have developed a taste for coffee. It's quite possible that high prices will cause consumption in these countries to fall again.

It remains to be seen whether there will also be a change in consumer behaviour in Switzerland. However, given that it has a well-established coffee culture, we can assume that coffee-lovers will continue enjoying their favourite beverage in the future.

Climate change

In principle, warmer temperatures are advantageous for coffee-growing. However, extreme weather events like drought, high temperatures and heavy rainfall are becoming more frequent. As we've seen in Brazil, this can result in poorer harvests, which then lead to higher prices.

What this means for coffee farmers

Migros gets its coffee from many different countries around the globe, especially Brazil, Colombia, Vietnam, Honduras, Guatemala, Peru and India. This ensures that it can offer a wide range of coffee tastes and experiences.

Wherever possible, Migros tries to buy directly from farmers and cooperatives. It also supports projects in Honduras, Peru, Brazil and Colombia. Higher prices are good news for smallholders because - in contrast to cocoa - coffee is freely traded worldwide without government intervention. They therefore reap the benefits in full.