Commodities July 30, 2026 03:12 PM

U.S. Sugar Use Inches Up While High Fructose Corn Syrup Falls, CoBank Finds

Data show modest sugar demand growth alongside population gains as consumers and manufacturers favor less processed sweeteners

By Derek Hwang
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A CoBank report using USDA-compiled data found U.S. cane and beet sugar demand rose 0.6% in the first half of the 2025/26 marketing year while deliveries of high fructose corn syrup fell 3.5%, signaling a shift among consumers and food firms toward less processed sweeteners even as overall sugar consumption keeps pace with population growth.

U.S. Sugar Use Inches Up While High Fructose Corn Syrup Falls, CoBank Finds
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Key Points

  • Cane and beet sugar demand in the U.S. rose 0.6% in the first half of the 2025/26 marketing year that began in October, per a CoBank report based on USDA-compiled data.
  • Deliveries of high fructose corn syrup fell 3.5% in the same period, and growth in sugar demand was stronger among wholesale grocers and food distributors.
  • Consumer sentiment surveys from 2025 show three in four U.S. consumers want to limit or avoid sugar, while CoBank flagged MAHA and increased GLP-1 drug use as long-term risks to sugar demand.

A recent analysis by U.S. rural lender CoBank, drawing on data compiled by the U.S. Department of Agriculture, shows diverging patterns in American sweetener use. Cane and beet sugar consumption increased by 0.6% in the first half of the 2025/26 marketing year that began in October, while deliveries of high fructose corn syrup, or HFCS, declined by 3.5% in the same timeframe.

The report notes that the modest gain in sugar demand essentially tracked population growth - the U.S. population rose by 0.5% in 2025 - and that the growth was concentrated in certain distribution channels. Wholesale grocers and food distributors were among the sectors where sugar use expanded more noticeably, according to CoBank.

CoBank interpreted the split between sugar and HFCS as evidence that both food manufacturers and consumers are leaning toward less processed, natural sweeteners. "Food manufacturers and consumers continue to favor natural sweeteners over more highly processed alternatives, as sugar and HFCS delivery trend lines make clear," the report said.

Public sentiment appears to be shifting even as measured sugar use grows. The International Food Information Council found in a 2025 survey that three out of four U.S. consumers want to limit or entirely avoid sugar. That consumer intent contrasts with the recorded uptick in cane and beet sugar deliveries but aligns with the drop in HFCS.

CoBank also flagged potential longer-term challenges for the sugar sector. The report named the Make America Healthy Again, or MAHA, movement as a long-term risk, and it identified rising adoption of GLP-1 weight-loss drugs as another prospective headwind. The report cited projections suggesting that active GLP-1 users could see grocery basket sizes fall by as much as 31% - a decline that would not necessarily single out sweetened products but would reduce demand broadly if consumers eat less overall.

While the near-term data show sugar demand holding up, CoBank's analysis highlights areas of vulnerability for producers, distributors and food manufacturers should dietary trends intensify or pharmaceutical-driven weight loss become more widespread. The report's findings point to a market where preference shifts and public-health movements can reshape demand patterns even when headline consumption figures remain relatively steady.


Methodology note: The findings reported here are taken from a CoBank analysis based on USDA-compiled delivery and consumption data for the first half of the 2025/26 marketing year that began in October, and referenced consumer survey results published in 2025 by the International Food Information Council.

Risks

  • The Make America Healthy Again (MAHA) movement poses a long-term demand risk to the sugar industry, potentially affecting sugar producers, food manufacturers and retail distribution.
  • Rising use of GLP-1 weight-loss drugs could reduce overall grocery basket sizes - projections cited in the report suggest declines among active users that would lower demand for sweetened foods and beverages broadly.
  • General reductions in consumption driven by health movements or pharmaceutical interventions could negatively impact sectors reliant on sweetened products, including processors, distributors and retailers.

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