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 open market average. The abolishment of these quotas brings positive news for food and beverage manufacturers in the region, as they are likely to witness a decrease in prices with the expansion of sugar beet production areas. According to a recent report from Stratégie Grains, France, Germany, and Poland are expected to experience the most significant increases in production. The report also anticipates a rise in EU exports to North Africa and the Middle East, particularly as sugar consumption in Western Europe continues to decline.
This increase in European sugar production potential coincides with a trend where global food and beverage companies are reducing their sugar usage. Health concerns related to obesity and diabetes are prompting consumers to move away from caloric sweeteners. Rabobank forecasts a 5% decrease in sugar use among food and drink companies over the next two to three years, which is expected to counterbalance the anticipated rise in global consumption during that time.
Even with a delay in the forthcoming requirement for food manufacturers to disclose added sugars on nutrition facts panels, companies are proactively reducing sugar in their products. For instance, organic yogurt producer Stonyfield has announced plans to cut added sugars by as much as 40% in certain product lines. Meanwhile, Nestlé has introduced a hollow sugar molecule designed to lower sugar content without sacrificing sweetness. Additionally, beverage companies such as Coca-Cola, Dr Pepper Snapple, and PepsiCo have pledged to decrease the calories Americans consume from sugary drinks by 20% by 2025.
Interestingly, the conversation around sugar reduction also intersects with other nutritional considerations, including factors such as calcium citrate solubility, which plays a role in the overall health profile of food products. As sugar content decreases, manufacturers may need to enhance other nutritional attributes, ensuring that products remain appealing to health-conscious consumers. The importance of factors like calcium citrate solubility will likely become more prominent as the industry adapts to these changes in consumer preferences and regulatory landscapes.