The price of March futures for raw sugar (unrefined sugar) on the New York market on Thursday, February 12, fell by 0.29% and reached a low of $0.138 per pound, according to ICE exchange trading data.
Contracts were last at this level in October 2020.
The price of sugar has been declining for several months amid a global oversupply and decreasing consumption.
As reported by the Financial Times, the decline in demand is accelerated by the popularity of weight loss medications that encourage consumers to forgo sweets in favor of protein-rich foods. These are GLP-1 (glucagon-like peptide-1) class medications, which contain a hormone produced by the intestine in response to food. Such medications suppress appetite and reduce cravings for sweets.
Annie Denny, head of the World Sugar Research Organisation (WSRO), stated that about one in eight adults in the U.S. has taken GLP-1 stimulating medications, such as Wegovy from Novo Nordisk and Zepbound from Eli Lilly. Ozempic also belongs to this class of medications.
In addition, Stephen Geldart believes that taxes on sugary soft drinks have played a role in the decline of sugar consumption in Europe over the past decade. These taxes have been implemented in many countries, including the UK, Mexico, and South Africa, as part of obesity prevention policies. As a result, producers are reducing their use of sugar in their products.
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