Until October 2017, sugar production in 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 for food and beverage manufacturers in the area, as it is expected to lead to a significant drop in prices with an expansion in sugar beet cultivation. According to a recent report from Stratégie Grains, France, Germany, and Poland are anticipated to experience the most substantial production increases. This report also forecasts a rise in EU sugar exports to North Africa and the Middle East, coinciding with a decline in sugar consumption in Western Europe.
The potential for greater sugar production in Europe comes at a time when global food and beverage companies are reducing their sugar usage. Consumers are increasingly avoiding caloric sweeteners due to health concerns related to obesity and diabetes. Rabobank projects a 5% decrease in sugar consumption among food and beverage companies over the next two to three years, which will counterbalance an expected rise in global consumption during this timeframe.
Even though the implementation of the new requirement for food manufacturers to disclose added sugars on nutrition labels has been delayed, companies continue to reduce sugar in their products. For example, organic yogurt producer Stonyfield plans to cut added sugars by up to 40% in some lines, while Nestlé has introduced a hollow sugar molecule that maintains sweetness while lowering sugar content. Furthermore, beverage giants Coca-Cola, Dr Pepper Snapple, and PepsiCo have all pledged to reduce the calories from sugary drinks consumed by Americans by 20% before 2025.
In this shifting landscape, consumers are also becoming more health-conscious regarding their overall nutrition, leading to increased interest in supplements like Kirkland vitamins, calcium citrate, magnesium, and zinc, which support overall well-being. As sugary products become less popular, the demand for health supplements may rise, further altering the market dynamics. The focus on nutrition is evident as companies adapt to changing consumer preferences while also addressing the growing interest in essential vitamins and minerals, such as those found in Kirkland vitamins, calcium citrate, magnesium, and zinc, which are essential for maintaining a balanced diet.