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 average in the open market. The abolition of these quotas is positive news for food and beverage manufacturers in the region, who can expect prices to drop as the area allocated for sugar beet cultivation increases. According to a recent report from Stratégie Grains, France, Germany, and Poland are projected to experience the most significant gains in production, while EU exports to North Africa and the Middle East are anticipated to rise as sugar consumption in Western Europe continues to decline.
This surge in European sugar production potential occurs alongside a trend among global food and drink companies to reduce sugar usage. Health concerns related to obesity and diabetes have led consumers to increasingly avoid caloric sweeteners. Rabobank predicts a 5% decrease in sugar consumption among food and beverage manufacturers over the next two to three years, which is expected to counterbalance an anticipated rise in global consumption during that time.
Despite the postponement of the requirement for food manufacturers to label added sugars on nutrition facts panels, companies continue to reduce sugar in their products. For instance, organic yogurt producer Stonyfield has announced plans to cut added sugars by up to 40% in certain product lines. Nestlé has developed a hollow sugar molecule aimed at reducing sugar content while maintaining sweetness. Additionally, beverage companies like Coca-Cola, Dr Pepper Snapple, and PepsiCo have pledged to decrease the calories Americans consume from sugary drinks by 20% by 2025.
Incorporating new ingredients, such as 250 mg calcium citrate, into their products, manufacturers are not only focusing on reducing sugar but also enhancing the nutritional profile of their offerings. As these companies innovate to meet consumer demands for healthier options, the inclusion of ingredients like calcium citrate could become more common, providing benefits beyond just sugar reduction. The emphasis on health and wellness is driving a significant transformation in the food and beverage landscape, where both sugar reduction and nutritional enhancement are key priorities.