Coffee’s bitter future

Coffee is largely derived from two main plant types: arabica and robusta. Arabica plants account for nearly 60% of global coffee production and are often preferred by coffee enthusiasts for their sweeter, more aromatic flavor. Beans from robusta plants are considered more bitter and less fruity, and due to their relative affordability, are a common choice for instant coffee. Climate change, however, poses a significant threat to arabica bean production, as increasing global temperatures and unpredictable weather patterns make cultivation more challenging. True to its name, the robusta plant is more resilient, and may capture a larger market share in the future. Yet even robusta crops are facing challenges. In Vietnam, the world's largest robusta producer, reduced rainfall has pushed some farmers to switch to planting black pepper or durian, a popular Asian fruit. Consequently, robusta coffee prices are at their highest level in 45 years, according to the International Coffee Organization (ICO). In the future, coffee drinkers may find their morning brew not only more bitter, but also significantly pricier.

Source: Bloomberg