GLP-1 Drugs: A Drop in Sugar Prices?

Sugar prices have fallen to a five-year low, partly due to the increasing popularity of GLP-1 drugs, such as Wegovy and Ozempic by Novo Nordisk, and Mounjaro and Zepbound by Eli Lilly. These drugs reduce cravings for sweets, leading to a decrease in sugar demand.

Raw sugar futures in New York fell below 14 cents per pound, the lowest level since October 2020.

Analysts point out that the decrease in sugar consumption has caught the industry by surprise, with Mexico and the US being the most prominent examples. The US Department of Agriculture has lowered its estimate for sugar use by 23,000 tons to 12.3 million tons by 2026.

Meanwhile, whey prices are rising as GLP-1 drugs and broader health trends drive increased demand for protein-rich products.

Clinicians warn that weight loss due to GLP-1s can be muscle rather than fat, leading to increased protein consumption.