Lavazza Company: Coffee prices will continue to rise in the next two years economy

Italian Lavazza, one of the largest coffee roasting companies in the world, expects coffee prices to continue rising over the next two years, noting that market fluctuations and lack of supplies will prevent prices from falling sustainably in the near term.

The Chairman of the Board of Directors of the Italian company, Giuseppe Lavazza, said, in an interview with Bloomberg, that the market needs to restore stability before talking about lowering prices, explaining that this requires at least two strong seasons of production in Brazil and Vietnam, in addition to rebuilding global stocks that have declined in recent years.

Lavazza added that uncertainty has become the prevailing feature in the coffee market, saying that “instability is the new constant,” in light of the continued fluctuations related to weather conditions and supplies.

An official’s statements came after Arabica coffee contracts in New York recorded their largest daily rise in 26 years at the beginning of the week (Monday session), before declining in the next session, in an indication of continued sharp fluctuations in the market.

Arabica and Canephora (Robusta) coffee are the two main commercial types of coffee in the world.

Although expectations of a record crop in Brazil had raised hopes for lower prices compared to record levels recorded in 2025, these expectations declined with the shrinkage of global stocks, the delay of the harvest season in Brazil, and the return of fears about the impact of the El Niño phenomenon on production.

Coffee prices have risen by about 30% since meteorologists announced last June the return of the El Niño phenomenon, which usually leads to sharp changes in temperature and rainfall patterns, threatening coffee production, especially in Brazil, the largest producer of Arabica coffee in the world.

Lavazza stressed that roasting companies are facing increasing pressure on their profit margins, noting that restoring balance in the market requires strong and successive harvests in Brazil and Vietnam, which current indicators still do not fully confirm.

Limited discounts

On the other hand, some retail coffee markets in Europe have begun to witness limited reductions in the prices of this drink. In Germany, major food retail chains reduced the prices of the products of a number of famous brands, including Jacobs, Lavazza, Dallmeier, and Melitta, after they had begun reducing the prices of their own brand products since the fall of 2025.

The reductions included chains such as Lidl, Kaufland, and Aldi, while other chains, including Edeka, Reve, and Penny, announced the implementation of additional reductions in accordance with market developments, while the Norma chain confirmed that it had maintained the reductions it had approved last May.

This step came after years of sharp rises in coffee prices as a result of poor harvests in major coffee-producing countries, especially Brazil, as German retail stores had previously reduced the prices of some packages by up to 50 cents ($0.54) last May.

Despite these reductions, coffee prices in Germany are still much higher than their levels recorded in 2020, according to data from the German Federal Statistical Office, which reflects the continued impact of high production costs and global supply fluctuations on retail prices.