Sugar consumption slows as weight-loss drugs and soft-drink taxes reduce demand

Sugar use in Western Europe fell 6.7% over the past two years and in the United States by 4.4%, and analysts say wider use of GLP-1 weight‑loss drugs along with higher soft‑drink taxes have contributed to weaker demand.

Sugar consumption has declined in the United States and Western Europe and is showing very slow growth globally. Analysts and industry figures point to higher taxes on sugary drinks and the expanding use of GLP-1 weight‑loss drugs as key factors. The change follows decades of steady growth and has already affected the industry in the form of factory closures and lower prices. These topics were discussed at the Dubai Sugar Conference. Key points: - Western Europe’s sugar use fell 6.7% over the last two years and U.S. consumption fell 4.4%, based on International Sugar Organization data. - Global sugar consumption is forecast to grow about 0.5% in the 2026/27 season, a historically low rate that analysts describe as a new normal. - GLP-1 class weight‑loss drugs are reported to reduce calorie intake by roughly 16% to 39% and to lessen preference for sweet, high‑fat foods; about one in eight U.S. adults have taken such drugs while global usage remains under 1%. - Some patents on branded GLP-1 drugs are expiring and prices are falling, and analysts say that wider availability could increase uptake in G‑20 countries and in markets such as Brazil, China, India and Turkey. - Taxes on sugary soft drinks in countries including Britain, Mexico and South Africa have been linked to lower sugar content in products, and lower demand has contributed to factory closures and sugar prices near five‑year lows. Summary: The decline in sugar use across Western markets is slowing long‑term growth that had averaged about 2% annually. Parts of Asia and Africa continue to see increased sugar demand driven by population growth, but the previous sustained rise appears stalled. Undetermined at this time.