Until October 2017, sugar production in the European Union (EU) was limited to 80% of the region’s demand, a policy that kept European sugar prices approximately 50% higher than the average price in the global open market. The abolition of these quotas is promising for food and beverage manufacturers in the region, as they are likely to experience a significant decrease in prices due to the expansion of sugar beet cultivation. According to a recent report from Stratégie Grains, France, Germany, and Poland are expected to see the largest increases in production. The report also anticipates a rise in EU sugar exports to North Africa and the Middle East, driven by a continued decline in sugar consumption in Western Europe.
The potential for increased sugar production in Europe coincides with a trend among global food and beverage companies to reduce sugar usage. Consumers are increasingly avoiding caloric sweeteners due to health issues such as obesity and diabetes. Rabobank predicts a 5% decrease in sugar consumption among food and beverage companies over the next two to three years, which is expected to counterbalance an anticipated rise in global sugar consumption during that same period.
Despite a delay in the requirement for food manufacturers to disclose added sugars on nutrition facts panels, companies have continued to reduce sugar in their products. For instance, organic yogurt producer Stonyfield has announced plans to cut added sugars by as much as 40% in select product lines, while Nestlé has developed a hollow sugar molecule to lower sugar content without sacrificing sweetness. Additionally, soda manufacturers like Coca-Cola, Dr Pepper Snapple, and PepsiCo have all pledged to decrease the caloric intake from sugary beverages in the U.S. by 20% by 2025.
The trend towards reduced sugar consumption is further reflected in the introduction of products like upcal d3, which offers alternatives that cater to health-conscious consumers. As this shift continues, the integration of innovations such as upcal d3 into product lines could play a crucial role in meeting changing consumer preferences while still capitalizing on the increased sugar production potential in the EU.