Coffee’s about to cost a latte

And it’s all thanks to climate change. Globally, coffee demand is ramping up: humans consumed 151m 60k bags of coffee last year, and China’s consumption alone has doubled in the past 5 years. In fact, coffee is the most traded commodity in the world after oil. And bean growers are under a lot of pressure […]


October 13, 2017

And it’s all thanks to climate change.

Globally, coffee demand is ramping up: humans consumed 151m 60k bags of coffee last year, and China’s consumption alone has doubled in the past 5 years.

In fact, coffee is the most traded commodity in the world after oil.

And bean growers are under a lot of pressure to produce

Brazil is the largest coffee producer in the $100B+ bean market (followed by Vietnam and Colombia), but for the past 2 years, global consumption has outpaced production.

Growers are still relying on surpluses accumulated in 2013 and 2014 to keep up with demand, and while farmers are expected to produce a record 153m 60kg bags of coffee this year, that still doesn’t leave much of a buffer.

But first, climate change

Studies project that higher temps and shifting rainfall could make over 90% of bean-growing land unsuitable for farming by 2050 — raising bean prices from $1.28/lb over the record high $3.39/lb in just a few short years.

In other words, lattes could be the reason gen Z-ers can’t buy houses.

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.