Coffee price increases have become unavoidable

Dreambeans’ mission is to make everyone’s day a little brighter by giving you amazingly good coffee at fair and reasonable prices. We do what we can to keep the costs down, we give you a free fourth bag of coffee when you buy three, and we consistently keep our prices below the prices we see being charged for coffee that is (let’s be honest) not as good as Dreambeans. However, as costs of everything else have risen relentlessly and the price of raw coffee continues to rise on the world markets, we had to make the difficult decision to increase our prices from 01 September 2024.

We want to be transparent about the reasons behind this change.

The Cost of Coffee is Rising Everywhere

In every coffee shop and cafe, the price of your favorite coffee has been increasing over the past 3 years. This trend is unfortunately expected to continue due to several key factors: Most websites selling decent coffee are charging substantially more than Dreambeans and the trend is inexorably upwards.

The price of arabica on the US Coffee C Futures market has surged by over 174% in the last four years, from around 90 cents per pound in May 2020 to approximately $2.59 per pound on 28 August 2024. We cannot absorb these increases without raising our prices.

Coffee harvest hit by adverse weather

Brazil is by far the largest producer of Arabica beans, and it has suffered severe droughts and frosts in 2020 and 2021. These events drastically reduced crop yields, and although production is recovering, it has not yet compensated for the losses. This has driven up the price of Arabica beans significantly. A poor harvest in Brazil means a global shortage of coffee in any given year and two bad harvests in a row have played havoc with supply lines and with prices. Happily, the latest reports of the 2024 harvest are very positive but it will take a good while for this increase in supply to effect change on global prices.

Vietnam, the top producer of Robusta beans, which is what nearly all instant coffee is made from, has faced extreme heat conditions and drought, exacerbated by El Niño, leading to a collapse in output. The price of Robusta beans has tripled from £1,250 per metric tonne in May 2020 to around £4,150 in 2024. This year’s shortage is so severe that instant coffee makers have been forced to buy and use Arabica coffee to make up the shortfall. Even though they buy the cheapest, lowest grade Arabica, there is a knock-on scarcity and a consequent increase in the price of all grades going right to the top of the value chain.

Coffee is being replaced by other crops

In addition, to make the situation in Vietnam worse, a significant number of farmers have been shifting from coffee production to other lucrative crops like durians and avocados. This diversification is partly driven by a adverse growing conditions and higher profits from these alternative crops, which has resulted in a reduction in coffee cultivation.

Sustained drought in Vietnam has had a serious knock-on effect on global coffee prices.

Coffee harvests can be difficult at the best of times. Challenging and rapidly changing climate conditions have played havoc in the past few seasons.

Chinese and global demand for coffee is growing.

China’s young people have started drinking coffee instead of tea. Coffee is seen as new and exciting, and even though the Chinese style of roasting and serving coffee isn’t to western tastes, they are still buying and roasting premium grade Arabicas in ever increasing numbers. This rapidly growing coffee market has significantly increased global demand. Coffee consumption in China grew by 15% in the year ending September 2023, with the number of branded coffee shops rising by 58%. This rapid growth in demand is putting additional pressure on global coffee supplies. China is expected to import 5 million sacks of coffee in 2024, almost double its 2018 total. This is putting additional sustained pressure on global supplies.

Our Commitment to Quality

We understand that price increases are never welcome news. However, to continue providing the exceptional quality you expect from Dreambeans, these adjustments are necessary. We remain committed to sourcing our beans ethically and sustainably, maintaining strong relationships with growers, co-ops and ethical brokers to ensure the highest quality coffee reaches your cup. We will shortly be changing our packaging, switching to a more easily recyclable plastic bag, even though it is more expensive than our current bags. We all have to do our bit. We appreciate your understanding and continued support as we navigate these challenging times.

Thank you for being a loyal customer of Dream Beans Coffee. We look forward to continuing to serve you the finest coffee.

Warm regards,

The Dream Beans Coffee Team