US sugar demand rises, corn syrup falls as consumers favor less processed foods

• US demand for cane and beet sugar grew 0.6% in the first half of the 2025/26 marketing year.
• Deliveries of high fructose corn syrup (HFCS) fell 3.5% during the same period.
• Consumers and food manufacturers are increasingly favoring natural sweeteners over processed alternatives.
• Wholesale grocers and food distributors were among the sectors showing increased sugar demand.
• Long-term risks for the sugar industry include health movements and the potential impact of GLP-1 drugs on obesity.

Demand for sugar in the U.S. saw a modest increase in the first half of the 2025/26 marketing year, while the use of high fructose corn syrup (HFCS) declined, according to a report by U.S. rural lender CoBank. The report, which compiled data from the Department of Agriculture (USDA), indicated that Americans may be prioritizing less processed foods, leading to a preference for natural sweeteners like cane and beet sugar over HFCS.

Cane and beet sugar demand grew by 0.6%, aligning with the U.S. population increase of 0.5% in 2025. In contrast, HFCS deliveries fell by 3.5% during the same period. The report highlighted that wholesale grocers and food distributors were key sectors contributing to the rise in sugar demand. This trend suggests that food manufacturers and consumers are actively choosing natural sweeteners over more highly processed alternatives.

Despite headlines often focusing on sugar consumption concerns, the data indicates stable demand for cane and beet sugar. However, the CoBank report also pointed to long-term risks for the sugar industry, including health-focused movements like 'Make America Healthy Again' and the potential widespread adoption of GLP-1 drugs for obesity reduction. Projections suggest that active users of GLP-1 drugs might reduce their grocery basket sizes by as much as 31%, which could impact demand for sweetened foods and beverages.