New York: The U.S. sugar industry may face a decline in demand as the federal government moves ahead with plans to introduce stricter food guidelines, a senior industry official said on Thursday, Reuters reported.
New school meal rules, updated dietary advice recommending no added sugars, and the increasing use of weight-loss medicines known as GLP-1 drugs could reduce sugar consumption across the country. At the same time, federal agencies are considering a clearer definition of “processed food,” which could lead to new labels or possible taxes on certain products.
Courtney Gaine, head of the Sugar Association, which represents and supports the U.S. sugar industry, said at the USDA Outlook Forum that new school meal standards set to begin next year may ban added sugars in kindergarten meals and limit them in higher grades. She said this change alone could lower sugar demand by more than 130,000 short tons.
Gaine described the current situation as challenging, saying there is a lot of confusion and concern. She said sugar seems to be an easy target for new rules, even though she believes there is not enough evidence that such limits would improve public health.
The industry is also watching the growing use of GLP-1 weight-loss drugs, which has increased from 12 per cent in May 2024 to 18 per cent in November 2025. Gaine said it is too early to measure the full effect of these medicines on sugar consumption.
She added that any new policy should be based on clear proof that it works. While a public campaign promoting healthier lifestyles has strong support, she said solid scientific evidence for strict sugar limits is still limited.
However, several medical studies support reducing added sugar in food. A review published in The BMJ, a leading medical journal, found links between higher sugar intake and health problems, including risks related to metabolism and heart health, and supported public health advice to cut back on added sugars.
