Global Sugar Prices Fall to a 5-Year Low Due to Popularity of Weight Loss Medications

Global sugar prices have reached their lowest level in over five years. The main reason for this decline is the increasing demand for weight loss medications, which are affecting consumers’ eating habits in many countries.

This is reported by AgroReview

Demand for Sugar Decreases in Developed Countries

On Wednesday, futures for raw cane sugar in New York fell to below 14 cents per pound, marking the lowest level since October 2020. Traders emphasize that this is the result of an unexpectedly rapid decline in sugar consumption in the U.S. and other developed economies around the world. Meanwhile, in developing countries, the demand for sugar is not growing as quickly as previously forecasted.

Among the key factors influencing the decrease in consumption is the use of GLP-1 injections for weight control. These medications activate the glucagon-like peptide 1 receptor, which induces a feeling of fullness and reduces cravings for sweets. The most well-known GLP-1-based medications are Wegovy and Ozempic from Novo Nordisk, as well as Mounjaro and Zepbound from Eli Lilly.

Impact of GLP-1 on the Sugar Market

The emergence of GLP-1 has posed a real challenge for the sugar industry.

“The decline in consumption, or the rate of its decrease, has caught the sugar industry off guard,” said Gurdev Gill from the brokerage firm Marex.

He added that even a drop in prices will not lead to a rapid reduction in supply, as sugarcane requires significant investment and long growing cycles. Additionally, many farmers benefit from government support, allowing them to remain in the market even amid falling prices.

Since December, the first GLP-1 pills have been approved, increasing the availability of these medications and promoting further growth in their use. Experts expect that the gradual decrease in prices for these drugs will only deepen their impact on the global sugar market.