Sunset for sugar?

The sun is setting on the Philippine sugar industry but our government refuses to acknowledge it, delaying efforts to transition the poor workers who are dependent on it.

- BOO CHANCO

In a recent issue, The Financial Times reported that sugar prices have tumbled to their lowest level in more than five years as weight-loss drugs accelerate a drop in demand by pushing consumers to ditch sweet treats in favor of protein.

"Raw cane sugar futures in New York dropped to less than 14 cents a pound, the lowest since October 2020 and less than half the level they hit in late 2023. Traders say the move reflects a sharper than forecast slowdown in consumption in the US and other wealthy economies, while demand in developing countries is growing at a slower pace than expected."

Welcome to the new world of Ozempic and other so-called GLP-1 weight-loss drugs — which reduce cravings for sweet flavors.

GLP-1s are the basis of medications including Novo Nordisk’s Wegovy and Ozempic and Eli Lilly’s Mounjaro and Zepbound.

"The drop in consumption, or the speed of it, has taken the [sugar] industry unaware," the Financial Times quotes Gurdev Gill at broker Marex.

Quotes the FT: "While sugar consumption in developed markets has been edging lower for years as people increasingly opt for healthy snacks, with these peptides now it feels like the more developed markets have really seen a large sea change in consumption."

The demand for GLP-1s has been driven by consumers battling obesity and diabetes. Some of these are already available in the Philippines but are still rather expensive. But generics can reduce costs by 70 percent.

Even before we entered the Ozempic Age, consumers have started to cut back on their sugar consumption. That's why there is Coke Zero and many products advertise “no sugar added.”