U.S. sweetener demand shifts as sugar use rises and corn syrup declines

U.S. sweetener demand shifts as sugar use rises and corn syrup declines
Sugar up, corn syrup down

U.S. sweetener consumption is showing a split pattern in the 2025/26 marketing year, with sugar demand edging higher while high fructose corn syrup use declines. The trend suggests consumers and food manufacturers are favoring less processed sweeteners even as overall efforts to reduce sugar intake remain mixed.

Highlights

  • Cane and beet sugar demand in the U.S. rises 0.6% in the first half of 2025/26, while high fructose corn syrup deliveries fall 3.5%.
  • Wholesale grocers and food distributors drive the increase in sugar demand, which aligns with U.S. population growth of 0.5% in 2025.
  • CoBank warns long-term sugar industry risks from the Make America Healthy Again movement and wider GLP-1 drug use, as grocery basket sizes may drop 31% for GLP-1 users.

CoBank data points to changing sweetener preferences

As reported by Reuters, citing CoBank, cane and beet sugar demand in the U.S. rises 0.6% in the first half of the 2025/26 marketing year that starts in October, while high fructose corn syrup deliveries fall 3.5% over the same period, based on compiled U.S. Department of Agriculture data.

The rural lender says wholesale grocers and food distributors are among the sectors where sugar demand grows more. CoBank says the increase in sugar demand remains broadly in line with U.S. population growth, which is 0.5% in 2025.

The report says delivery trends indicate that food manufacturers and consumers continue to favor natural sweeteners over more highly processed alternatives. It adds that, despite persistent concern over sugar consumption, USDA delivery data shows demand for cane and beet sugar remains intact.

Health trends create longer-term risks for sugar industry

Consumer attitudes toward sugar remain cautious, with three out of four U.S. consumers saying in a 2025 survey by the International Food Information Council that they want to limit or completely avoid sugar.

CoBank says the Make America Healthy Again movement presents long-term risks for the sugar industry, alongside the prospect of wider use of GLP-1 drugs for obesity reduction. The report says some projections suggest grocery basket sizes could decline by as much as 31% among active GLP-1 users, which could lower demand for sweetened foods and beverages as consumers eat less overall.

In our earlier article on mounting pressures on Iowa farmers, we reported that producers are being squeezed by higher diesel, fertilizer, and healthcare costs alongside weak crop prices and trade uncertainty. The piece also noted growing financial strain and declining rural confidence as policy delays and tariff-related disruptions add to income volatility across farm country.

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