Brazil's Coffee Crisis: Consumption Plunges 16% Amidst Record Price Hikes

Coffee Consumption in Brazil Plummets Amidst Record Price Hikes Brazil, a major coffee producer and consumer, is experiencing a sharp decline in coffee consumption. Data released by the Brazilian Coffee Industry Association (ABIC) reveals a nearly 16% drop in April 2025 compared to the same month in 2024. This significant decrease is directly attributed to a dramatic price increase; coffee prices have risen by 80% in the past year, marking the highest inflation rate in 30 years, according to the IBGE (Brazilian Institute of Geography and Statistics). "The increase in prices is unprecedented," states Juliene Moretti, a G1 reporter. "Instant coffee saw the most significant price jump, increasing by 85%." The ABIC report further indicates a 5% decrease in coffee sales from January to April 2025 compared to the same period in 2024. Experts attribute this situation to several factors, including climate-related challenges that have affected production in recent years, reduced global supply due to crop failures in countries like Vietnam, and increased international transport costs due to global conflicts. The impact on the Brazilian market is substantial, as retail sales account for 73% to 78% of domestic consumption. Despite the challenges, Brazil's coffee industry remains resilient. Efforts are underway to address the issues affecting production and distribution, aiming for a more stable market in the future.