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 on the open market. The removal of these quotas is thus a positive development for food and beverage manufacturers in the region, as they are expected to see prices drop with the expansion of areas dedicated to sugar beet cultivation. According to a recent report by Stratégie Grains, France, Germany, and Poland are anticipated to experience the most significant production increases. The 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 increased European sugar production arises as global food and beverage companies are actively reducing their sugar usage. Consumers are increasingly avoiding caloric sweeteners due to health concerns such as obesity and diabetes. Rabobank predicts a 5% decrease in sugar use among food and beverage companies over the next two to three years, which is expected to counterbalance an anticipated rise in global consumption during the same period.
Despite a postponement of the upcoming requirement for food manufacturers to disclose added sugars on nutrition facts panels, companies continue to reduce sugar content in their offerings. For instance, organic yogurt producer Stonyfield has announced plans to cut added sugars by up to 40% in some product lines. Additionally, Nestlé claims to have developed a hollow sugar molecule that allows for a reduction in sugar content without sacrificing sweetness. Notably, soda manufacturers 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 context, various innovative ingredients are emerging, including calcium citrate in liquid form, which can serve as a potential alternative to sugar. As companies explore options like calcium citrate liquid form, they are likely to find ways to maintain flavor while minimizing sugar usage. The trend toward incorporating ingredients such as calcium citrate liquid form is expected to grow, especially as consumers continue to demand healthier product options.