Several factors are expected to drive up the cost of coffee beans by as much as 30%
The price of coffee could be set to rise as the market faces its first supply deficit in six years.
Prices are due to jump by as much as 30% from their 2015 levels, amid the possibility of a global coffee shortage.
A poll of 11 different traders performed by Retuers earlier this week showed that prices are on the rise across the board, with arabica and robusta, the two main types of coffee beans in the world, both experiencing problems with their harvests.
According to Fortune Magazine, weather conditions related to El Niño have affected coffee growers in southeast Asia, while a second year of drought in Brazil has damaged crops and contributed to the expected shortfall in supply.
Strong demand for coffee across the globe has also added to the problem, after Starbucks announced that they will open 2,500 new stores in China in the next five years, with expectations that it will soon become their biggest market.
Furthermore, despite a backdrop of political uncertainty, the value of the Brazilian real has risen against the dollar (the currency in which coffee is traded) which is also set to drive up the cost.
So what does this mean for your daily cup (or six) of coffee? Earlier this month, Starbucks announced that they would be raising the cost of their beverages in the United States, citing not only the increased price of coffee beans, but also staff costs, as they had given their employees a raise.
However, it was the third year running that Starbucks had announced a price hike, and demand is still projected to grow in the United States, as well as China, India and Japan.
With no end in sight the amount of coffee shops springing up, and forecasts of frost and further poor weather conditions in Brazil threatening the crop, Shawn Hackett, president of Hackett Financial Advisors told Fortune that we could be set for coffee to hit its highest price in years.
"Any kind of major weather threat could send … coffee prices back up to retest the 2011 highs near $3 per pound," said Hackett.
While the price of a cup of Joe from big chain coffee shops isn't about to jump up over night, given they don't fluctuate their prices in real-time based on how the markets change, the persistent and growing demand suggests that you might need to be prepared to reach a bit deeper into your pocket sooner rather than later. Or you could, y'know, drink something else.