Sugar consumption is declining in the USA and Western Europe and is stagnating globally as greater taxes on delicate drinks and the widening use of weight-loss medication dampen demand, analysts and trade executives stated.
The weakening of demand has already led to sugar manufacturing unit closures in each the US and Europe and helped to drive sugar costs right down to round five-year lows, traits that would speed up as decrease costs of weight-loss medication heighten their reputation throughout the globe.
Sugar consumption in Western Europe has fallen by a complete of 6.7% within the final two years and in the USA by 4.4%, in keeping with Worldwide Sugar Organisation information.
International sugar consumption is forecast to develop 0.5% within the 2026/27 season, a traditionally low quantity however one that’s turning into the “new regular,” Eder Vieito, chief government of analysts Inexperienced Pool, advised Reuters on the sidelines of the annual Dubai Sugar Convention.
The slowdown follows a few years of sustained development, which has seen consumption develop at about 2% a yr and roughly double within the final 50 years.
“There are a selection of things there, not simply the load medication, however that is definitely an element,” Vieito stated, additionally mentioning sugar taxes and stricter meals labelling legal guidelines.
The category of weight-loss medication, often known as GLP-1, reduces calorie consumption by 16% to 39% with a decreased desire for candy, high-fat meals, Annie Denny, Director Normal of the World Sugar Analysis Organisation (WSRO), advised the convention.
Roughly one in eight US adults have taken GLP-1 medication comparable to Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, though international utilization is presently lower than 1%, she stated.
The drug utilization is poised to develop, notably in G-20 countrie,s with some patents expiring this yr, permitting cheaper copycat alternate options into many markets.
Potential development markets embody Brazil, China, India and Turkey, which collectively account for 1 / 4 of the world’s overweight adults, Denny stated. The worth of branded medication comparable to Wegovy and Zepbound can be falling, serving to to extend demand.
Taxes on sugary delicate drinks have additionally performed a job in a decline in sugar consumption in Europe during the last decade, Stephen Geldart, head of research at Czarnikow, stated.
The taxes on delicate drinks, launched in lots of international locations together with Britain, Mexico and South Africa as an anti-obesity coverage, are linked to the quantity of sugar they comprise and have prompted producers to decrease its use of their merchandise.
“During the last decade, international demand development has slowed as shoppers and governments are demanding adjustments in sugar use. The slowdown within the development of sentimental drinks that comprise sugar is one driver of this,” John Adams, Director of Sugar Analysis at GlobalData, stated.
The decline within the West is, for now, being offset by elevated demand for sugar in Asia and Africa linked to inhabitants development, in keeping with analysts, however the sustained rise over many many years seems to have stalled.
