Coffee prices to ease in 2026 but remain elevated as demand stays strong

Coffee is part of many adults’ daily routine, with many being able to ‘wake up’ after their first cup. However, being able to consume this hot beverage daily does not come cheap. In today’s economy, coffee is a luxury, with a decent cup of coffee costing approximately R50, while a 200g bottle, on sale, can cost more than R150 and last only a month.

Mbulelo Mashilo, brand manager at Douwe Egberts, said the prices of coffee, both global and local, continue to rise, but people still include this form of caffeine in their monthly budgets. According toJust2Trade, the World Bank projects coffee prices this year will stabilise at structurally higher levels than between 2020 and 2023, reflecting climate risks and supply constraints. “Prices should stabilise at structurally higher levels as climate adaptation investments improve resilience,” said the international online brokerage company.

“New plantations, particularly Robusta in Brazil’s warmer regions, will increase supply but require three to four years to reach full production.” In 2025, coffee prices increase significantly due to supply shortages and weather concerns. In February last year, cocoa was trading at $8 329.66 per ton. In December 2024, cocoa prices rose 50% in one month, reaching an all-time high.

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“The global coffee industry has faced sustained volatility in recent years, with climate change in key production regions reducing yields and pushing up prices, while geopolitical tensions continue to drive fluctuations across global supply chains,” he said. “In South Africa, however, coffee consumption is proving resilient. Despite ongoing cost-of-living pressures, people continue to prioritise quality, adjusting how they consume coffee rather than abandoning it altogether.” Mashilo added that South African coffee lovers continue to opt for premium coffee products, which are proving more resilient and growing even amid a challenging economic environment. He noted that the country’s coffee culture is catching up to its European and other first-world counterparts, with local taste profiles evolving toward café-style quality.

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