In the latest Sugar and Sweeteners Outlook, the USDA reported that sugar deliveries have been slowing annually since 2021/22. The delivery pace was flat in 2022/23, declined slightly the following year, and was forecast 2% lower for the current marketing year. The USDA attributed the slowdown to a decline in retail sales because of inflation and a change in eating habits as an increasing number of consumers have started taking GLP-1 drugs. Sources state that this shift in consumer habits has sparked some concern regarding demand for their products, particularly amongst food manufacturers.
The USDA reported that deliveries for cane sugar were weaker compared to beet sugar deliveries. Beet sugar deliveries dropped to the slowest pace since 2019 during November and December of 2024. However, beet sugar deliveries resumed at a more average pace in January through March 2025. The pace of deliveries for cane sugar has not recovered, and sources attribute this to the premium in price versus beet sugar. The Expana Benchmark Price for cane sugar spot FOB Southeast (customer access only) was most recently assessed at $0.49/lb, while beet sugar spot FOB Midwest (customer access only) was assessed at $0.41/lb.
Meantime, Robert F. Kennedy Jr., Secretary for the US Department of Health and Human Services, leads a committee that recently released The Make America Healthy Again Commission Report, reported Expana. The report addressed concerns about the use of food additives in the US food supply chain, and the impact these ingredients can have on consumers’ health. Sugar usage in Americans’ diets was addressed in the report, citing sugar as a factor in rising rates of chronic diseases.
Most buyers state that they are booking for the rest of the calendar year in increments as supply is readily available and demand is weaker compared to previous years. Also, many players are comfortable in their positions after overcommitting for the past two years. Market participants noted that they will be taking a wait-and-see approach as consumers digest the report that was released at the end of May, as this could further impact already weakened demand.
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Written by Andraia Torsiello
