Coffee and Tea Manufacturers NAICS 311920

Dec 20, 2025 - Shift From Arabica to Robusta

• Brazilian coffee farmers increasingly are shifting from arabica to robusta coffee beans due to climate change, rising temperatures, and volatile weather that make arabica harder and more expensive to grow, Fresh Cup reported in December. Brazil is the world’s largest arabica grower and while arabica continues to dominate, robusta production has increased by 81% over the past decade. In just the last growing season, robusta production jumped nearly 22% compared to the previous harvest. As robusta production expands, its quality is improving, creating opportunities for manufacturers to introduce new flavor profiles and lower‑cost blends. The shift from arabica to robusta likely means higher arabica prices and tighter supply, which could pressure manufacturers’ margins. Coffee manufacturers could also meet resistance from consumers accustomed to arabica coffee and who may associate robusta beans with lower‑grade coffee.
• Even though President Trump lifted the steep import tariff on Brazilian coffee in November, coffee prices are expected to remain high, creating ongoing cost pressure for coffee manufacturers, Fresh Cup reports. While arabica and robusta futures briefly fell after the tariff cuts, underlying global factors, such as poor harvests, climate volatility, and supply chain instability, continue to keep prices elevated. That’s bad news for US coffee manufacturers, which can’t count on meaningful relief on bean costs in the near term. Persistently high wholesale prices will continue to squeeze margins, especially for those who rely on specialty arabica beans. Unfortunately for coffee lovers, Trump's tariff removal offered only symbolic relief, while real-world costs for manufacturers remain stubbornly high.

• A new study from researchers at Tufts University suggests that drinking coffee carries life-lengthening health benefits, but only if you pass on the cream and sugar, Healthline reports. Coffee is rich in antioxidants, compounds that protect against oxidative stress in your body caused by damaging free radicals that are believed to be associated with aging. Coffee is one of the biggest sources of antioxidants in the Western diet — outranking both fruits and vegetables combined. That’s because two-thirds of Americans drink coffee daily, according to the National Coffee Association, which means coffee contributes more to people’s antioxidant intake on average. Also, controlled studies examining the effects of caffeine on the brain have demonstrated it can temporarily improve mood, reaction time, memory, vigilance, and general brain function, another plus for coffee drinkers. Lastly, coffee has been repeatedly associated with a lower risk of type 2 diabetes.
• Producer prices for coffee and tea manufacturers are soaring, driven by high prices for coffee beans and tea leaves due to poor harvests and labor shortages in key growing areas and stiff tariffs on US imports. The producer price index for coffee and tea manufacturers, which measures prices producers receive for their products, jumped 28.4% in September compared to a year ago, after posting a more modest rise of 5.6% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. At the retail level, coffee prices were up 18.9% year over year in September, per the BLS. Employment by makers of coffee, tea, and other food products was flat YoY in August, while average wages at food manufacturers rose 3.1% YoY in September to a new high of $24.27 per hour, BLS data show.