The U.S. Department of Agriculture (USDA) announced on Tuesday that sugar demand in the United States is projected to fall further in the 2024/25 season, while production is expected to reach record levels.
Key Highlights:
Projected Sugar Demand:
Sugar consumption in the U.S. for the 2024/25 season is estimated at 12.48 million short tons (ST), which is 75,000 ST less than the previous month’s estimate and 2.7% lower than the prior year’s usage.
If confirmed, this would mark the third consecutive annual decrease in sugar consumption in the U.S.
Factors Influencing Demand:
The decline in sugar demand has been attributed to the rising use of GLP-1 drugs, which are used to reduce obesity and have impacted sugar consumption patterns.
The USDA noted that recent sugar deliveries to consumers have been lower than anticipated, although no specific reasons were provided for this decrease.
Production Estimates:
Despite the drop in demand, sugar production is projected to reach a record 9.37 million ST for the 2024/25 season, up from 9.31 million ST in the last crop season.
The season runs from October to September, and the record production is expected to enhance sugar availability in the U.S. market.
Supply Indicators:
The sugar stocks-to-use ratio, a key indicator of supply levels, is projected at 15.3% for the 2024/25 season, exceeding the 13.5% threshold that the USDA considers adequate.
With increased production, sugar imports are expected to decline to 2.89 million ST, down from 3.81 million ST in the previous season.