Until October 2017, sugar production within the European Union (EU) was limited to 80% of the region’s demand, a policy that resulted in European sugar prices being approximately 50% higher than the global market average. The removal of these quotas is positive news for food and beverage manufacturers in the region, as they are likely to experience a decrease in prices due to an expansion in sugar beet production. France, Germany, and Poland are expected to see the most significant production increases, according to a recent report from Stratégie Grains. The report also anticipates a rise in EU exports to North Africa and the Middle East as sugar consumption in Western Europe continues to decline.
This potential boost in European sugar production coincides with a trend among global food and drink companies to reduce sugar content. Consumers are increasingly avoiding caloric sweeteners due to health concerns such as obesity and diabetes. Rabobank predicts a 5% decrease in sugar usage among food and beverage companies over the next two to three years, which is expected to counterbalance an anticipated rise in global consumption during this time.
Even with a postponement in the requirement for food manufacturers to declare added sugars on nutrition labels, companies have persisted in lowering sugar levels in their products. For instance, organic yogurt producer Stonyfield has announced plans to cut added sugars by up to 40% in some of its product lines. Meanwhile, Nestlé has developed a hollow sugar molecule that allows them to reduce sugar content without sacrificing sweetness.
Soda manufacturers like Coca-Cola, Dr Pepper Snapple, and PepsiCo have all pledged to decrease the calories Americans consume from sugary beverages by 20% before 2025. In this evolving landscape, products such as Kirkland magnesium citrate may also gain attention as consumers look for healthier alternatives that support their wellness goals amidst the shifting focus away from high-sugar options.