Arabica Coffee Pricing Factors
The cost of arabica coffee can vary depending on the quality and origin of the beans. Generally, it is more expensive than other types of coffee due to its superior flavor and aroma. A typical pound of arabica coffee can range from $11-$17, while a specialty grade arabica coffee can cost up to $25 or more. Arabica coffee is widely considered to be the highest quality coffee available.
Brazil is the largest producer of Arabica coffee beans. This coffee is known for its smooth taste and rich flavor. Starbucks capitalized on the Seattle coffee shop scene, shifting demand from cheaper robusta to better-tasting Arabica varieties globally. Arabica coffee comes from Coffea Arabica plants, originating in Ethiopia. It is the world’s most popular coffee type, equating to over 60% of global consumption.
Arabica Coffee Characteristics
Arabica coffee is considered a luxury, and it is one of the most expensive types of coffee on the market. About 75 per cent of the world’s coffee production is arabica beans and it is more expensive than its cheaper counterpart, robusta beans. Arabica beans brew a coffee that is smoother and less bitter with a complex flavor, which makes them very palatable.
Arabica taste is often considered to be more desirable by coffee lovers compared to Robusta. Arabica coffee tends to be smoother, with a wider range of subtle and nuanced flavors, including floral, fruity, chocolate, and acidic notes.
Growing Conditions and Production
Arabica coffee is grown in tropical highland climates, typically between 3,000-6,000 feet above sea level. It requires significant rainfall, rich volcanic soil, and temperatures between 64-70°F to grow best. Arabica coffee beans are more expensive than robusta coffee beans for a few reasons. First, arabica coffee is more difficult to cultivate because it is more sensitive to the environment. Second, it produces less coffee per hectare than robusta. Third, it tastes better, which makes the demand higher.
Current Coffee Prices
Tight supplies recently propelled Arabica coffee prices to record highs. Production disruptions from unfavorable weather and global supply chain issues also lead to increasing prices. To maintain profitability amid rising costs, farmers charge rates keeping their business viable.
The average consumer price for coffee is currently $2.99 across restaurant types, an 8 cent increase from last year. Specialty coffee shops charge $4.24 per cup, up 8 cents. Prices have been rising due to inflationary pressures, supply chain disruptions, and rebounding demand as the world recovers from the pandemic.