“Sugar prices have tumbled to their lowest level in more than five years as weight-loss drugs accelerate a drop in demand by pushing consumers to ditch sweet treats in favour of protein.

Raw cane sugar futures in New York dropped to less than 14 cents a pound on Wednesday, the lowest since October 2020 and less than half the level they hit in late 2023. Traders say the move reflects a sharper than forecast slowdown in consumption in the US and other wealthy economies, while demand in developing countries is growing at a slower pace than expected.

So-called GLP-1 weight-loss injections — which work by activating the glucagon-like peptide 1 receptor hormone that makes people feel fuller — have been a crucial driver of reducing cravings for sweet flavours. GLP-1s are the basis of medications including Novo Nordisk’s Wegovy and Ozempic and Eli Lilly’s Mounjaro and Zepbound.

‘The drop in consumption, or the speed of it, has taken the [sugar] industry unaware,’ said Gurdev Gill at broker Marex, adding that Mexico and the US have been the clearest examples, while demand data in Europe has also been ‘challenging’ for sugar prices.”

From Financial Times.