Global demand for sugar is losing momentum as consumption declines in the United States and Western Europe and shows minimal growth elsewhere, driven by higher taxes on sugary drinks and the increasing use of weight-loss medicines, analysts and industry experts said, according to the Daily Times.
Data from the International Sugar Organisation shows that sugar consumption in the United States has fallen by 4.4% over the past two years, while Western Europe has recorded a 6.7% drop. The trend has already resulted in factory closures in both regions and pushed sugar prices to about five-year lows.
The slowdown comes after decades of steady expansion, during which global sugar consumption grew by roughly 2% each year and nearly doubled over the last 50 years. Eder Vieito, Chief Executive Officer of Green Pool, told Reuters that although several factors are behind the decline, weight-loss medicines are playing a major role.
Medicines in the GLP-1 category, including Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, can lower calorie intake by 16% to 39% and reduce cravings for sweet and high-fat foods, said Annie Denny, Director General of the World Sugar Research Organisation. About one in eight adults in the United States have used these drugs, though global usage remains below 1%. However, wider availability and patent expirations are expected to increase adoption in countries such as Brazil, China, India, and Turkey.
Taxes on sugary beverages have also contributed to reduced sugar consumption, leading manufacturers in countries including the United Kingdom, Mexico, and South Africa to adjust product formulations. Stephen Geldart, head of analysis at Czarnikow, said such taxes have helped address obesity and have been a key factor behind the slowdown in European sugar demand over the past decade.
Even as population growth in Asia and Africa continues to support higher sugar consumption, global demand is projected to rise by only 0.5% in the 2026/27 season-an unusually low rate that experts describe as the “new normal.” Analysts caution that the long period of consistent global growth in sugar consumption may now have reached a plateau.
