Sugar use in the US projected to fall, government says
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New-generation drugs to reduce obesity may be having an impact on people's food choices in the US, analysts believe.
PHOTO: AFP
NEW YORK - Sugar use in the United States in the 2024/25 season will fall to 11.29 million tonnes, the US Department of Agriculture (USDA) projected on March 11, 31,750 tonnes below a month-earlier estimate and 3 per cent below the amount used in the previous year.
The USDA has been cutting its forecast for sugar consumption in the US in recent months.
If the current projection is confirmed, it would be the third consecutive annual decrease.
Declining demand has been a hot issue among sugar market participants, particularly in the US, due to the increasing use of new-generation drugs to reduce obesity.
“My guess is that some of this is because GLP-1 drugs are already having an impact on people’s food choices,” said Mr Stephen Geldart, head of analysis at supply chain services provider Czarnikow.
The USDA said sugar deliveries to food industries in the country have been smaller than initially projected, but did not give a detailed reason for the fall.
Sugar output was projected at a record 8.53 million tonnes in the 2024/25 season, which runs from October to September, versus 8.45 million tonnes in the last crop.
The record crop and declining demand are expected to improve availability. Sugar stocks-to-use ratio, an indicator of the supply level, was projected at 15 per cent in 2024/25, above the 13.5 per cent level the USDA usually considers adequate.
With higher production, imports are expected to fall to 2.51 million tonnes from 3.46 million tonnes in the previous season. REUTERS
