Global Coffee Price Changes and Their Impact on the Georgian Market

The culture of coffee worldwide is particularly diverse, with many countries having unique traditions associated with this beverage. Coffee, as one of the most popular drinks globally, is not only a culinary experience but also a significant economic resource that greatly impacts international trade and the global economy. Recently, the price of coffee on the world market has experienced a significant increase, altering its economic and cultural significance.

The culture and consumption of coffee are globally significant phenomena. Coffee is one of the most consumed beverages in the world, and the tradition of its consumption varies across countries. For instance, in Italy, coffee culture is closely linked to espresso, which is typically consumed quickly as part of the daily routine, whereas in France, coffee is often enjoyed at a leisurely pace, adding a more social element to its consumption.

In the United States, the culture of drinking coffee “to-go” stands out, reflecting the fast-paced American lifestyle. In the U.S., coffee often becomes an integral part of social and work environments, associated with productivity. In Scandinavian countries such as Finland and Sweden, coffee drinking is more ritualized and is known for the tradition of “fika,” which involves enjoying coffee, relaxing, and socializing with friends and family.

Among the largest coffee producers in the world are Brazil, Vietnam, and Colombia, which are the main suppliers of coffee beans. Brazil is the largest coffee producer globally, and its harvest volume significantly affects global prices. Recently, particularly during the 2024-2025 season, drought in Brazil has caused considerable damage to the harvest, leading to an increase in global coffee prices.

In 2024, the price of coffee on world markets rose substantially. According to Trading Economics, the price of Arabica futures is $2.60 per pound, indicating a 76% year-on-year increase and a 5.8% rise over the past month. One of the main reasons for the increase in coffee prices is concern over poor harvests in Brazil. As the largest supplier of coffee beans, prolonged droughts have severely affected plantations, leading to increased demand from importing countries and, consequently, higher prices.

The rise in coffee prices globally affects both producers and consumers. In addition to Brazil, climate change has impacted Vietnam and Colombia, exacerbating global coffee supply challenges. Reduced harvests and supply restrictions increase the market value of the product, which ultimately affects the price for consumers.

The increase in coffee prices has also been felt in Georgia. During the period from January to August 2024, Georgia purchased 4,945 tons of coffee valued at $24.3 million, which is a significant increase compared to the same period last year. In 2023, during the same period, the country bought 5,050 tons of coffee valued at $19.9 million, indicating a decrease in the volume of imported coffee but an increase in its price.

According to last year’s data, the average import price of coffee per kilogram without taxes was $3.90, while in 2024, this price increased to $4.90, representing a 25% increase. This change is reflected in retail prices as well. A couple of months ago, the minimum price of one kilogram of ground, unpackaged coffee was 28 GEL, while currently, the minimum price is 32 GEL.

It is important to note that, in terms of coffee consumption, Georgia is different from other countries. In Georgia, per capita coffee consumption is approximately 1.8 kg per year, which is relatively low compared to other countries worldwide. For instance, in Finland, one of the world’s largest coffee consumers, per capita consumption exceeds 12 kg annually. In Germany, this figure is 5.5 kg, while in the U.S. it is 4.5 kg. These data indicate that coffee consumption in Georgia is relatively low, which could be attributed to economic factors as well as the less widespread coffee culture.

The increase in coffee prices in the Georgian market is mainly connected to global factors, including harvest damage in Brazil and global supply chain issues. At the same time, increased domestic prices in Georgia are linked to rising import costs, which ultimately impact consumers.

The global coffee market and its prices significantly affect both producer and consumer countries. According to 2024 data, the increase in coffee prices on global markets is primarily due to climatic conditions, which adversely affect the quantity and quality of the harvest. The prolonged drought in Brazil and climatic issues in other producing countries have significantly increased the price of coffee, which in turn influences global demand and prices.

In Georgia, the rise in coffee prices is directly linked to global trends. Although coffee consumption in Georgia is not as integrated into the culture as it is in, for example, Italy or Scandinavian countries, demand for it continues to grow. Moreover, Georgia’s relatively low per capita coffee consumption suggests that there is still potential for growth in coffee consumption, particularly if the price of coffee becomes more affordable for consumers.

In the future, changes in coffee prices may depend on global climatic conditions, economic trends, and the stability of international markets. For Georgia, it is crucial to find diversified import sources to reduce the impact of global shocks on the domestic market and ensure that coffee prices are relatively stable for consumers. At the same time, developing and popularizing coffee culture in the country will contribute to increased consumption, which in turn could positively affect the local economy.