Coffee Prices NZ 2025: Why They’re Increasing in NZ & Globally

If you've noticed your daily flat white costing more lately, you're not alone.

What’s Driving Coffee Prices in NZ in 2025?

Coffee prices have been climbing steadily across New Zealand, with some cafés charging over $6 per cup. Let's delve into the key factors contributing to the rising cost of coffee in 2025.

1. Climate Change Disrupting Coffee Production

Climate change is significantly impacting coffee-growing regions worldwide. Brazil, the largest coffee producer, is experiencing its worst drought in over 70 years, leading to substantial reductions in coffee yields. Similarly, Vietnam, the second-largest producer, faces severe droughts and floods, further diminishing global coffee supplies.

These adverse weather conditions have led to a decrease in the availability of both Arabica and Robusta beans, pushing global coffee prices to their highest levels in decades.

2. Supply Chain Challenges and Geopolitical Tensions

Global supply chains are under strain due to geopolitical conflicts and logistical issues. The conflict in the Red Sea region has disrupted shipping routes, causing delays and increased costs for transporting coffee beans from Asia and Africa.

Additionally, U.S. tariffs on imported goods have led to price hikes in the coffee industry. While these tariffs are primarily affecting the U.S. market, the ripple effects are felt globally, contributing to overall price increases.

3. Rising Demand for Coffee

Global demand for coffee continues to rise, particularly in emerging markets. As more people develop a taste for specialty coffee, the pressure on already strained supplies intensifies, leading to higher prices.

4. Currency Fluctuations Affecting Import Costs

The New Zealand dollar has weakened against the U.S. dollar, making imported goods, including coffee beans, more expensive for Kiwi importers. Since green coffee beans are typically traded in U.S. dollars, this currency fluctuation directly impacts the cost of coffee in New Zealand.

5. Increased Production and Operational Costs

Coffee producers are facing higher costs for fertilizers, labor, and transportation. These increased expenses are passed along the supply chain, resulting in higher prices for consumers. In New Zealand, local roasters and cafés are grappling with these rising costs, leading to more expensive cups of coffee.

Final Thoughts

Coffee prices NZ 2025 are rising due to a perfect storm of global and local pressures: extreme weather in key growing regions, international shipping delays, and a weaker New Zealand dollar. Combined with growing global demand and increased costs across the supply chain, it's no surprise your morning brew is getting more expensive.

At Cascade Coffee Co., we're doing everything we can to continue delivering quality coffee at fair prices, even as the landscape shifts. By choosing local roasters like us, you're supporting a more resilient and transparent supply chain, rooted right here in New Zealand.