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US Sugar Demand Rises as Consumers Shift Away From Corn Syrup, CoBank Reports
Summary
Demand for sugar in the U.S. grew modestly in the first half of the 2025/26 marketing year, while high-fructose corn syrup use declined, suggesting a consumer preference for less processed sweeteners, according to a CoBank report.
U.S. demand for sugar is growing in line with the population while consumption of high-fructose corn syrup (HFCS) is falling, indicating a consumer preference for natural sweeteners over more highly processed alternatives. The trend suggests Americans are more focused on avoiding processed ingredients than on reducing overall sugar intake, according to a new report from rural lender CoBank.
Shifting Sweetener Preferences
Data compiled from the U.S. Department of Agriculture (USDA) shows that demand for cane and beet sugar rose 0.6% in the first half of the 2025/26 marketing year, which began in October. In contrast, deliveries of HFCS fell by 3.5% during the same period, the report stated.
The modest increase in sugar demand closely tracks the annual U.S. population growth of 0.5% in 2025, suggesting stable per-capita consumption. "While concerns about sugar consumption dominate headlines, rising USDA delivery data suggest demand for cane and beet sugar remains firmly intact," CoBank noted in its analysis.
Market Impact and Consumer Behavior
The diverging trends highlight a key shift in the food and beverage industry, where producers are responding to consumer demand for less processed products. "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. The analysis identified wholesale grocers and food distributors as sectors with particularly strong growth in sugar demand.
AdThis purchasing behavior appears to conflict with consumer sentiment. A 2025 survey from the International Food Information Council found that three out of four U.S. consumers stated a desire to limit or avoid sugar entirely.
Long-Term Headwinds
Despite the current stability, CoBank identified significant long-term risks for the sugar industry. These include public health initiatives like the "Make America Healthy Again (MAHA)" movement and, notably, the increasing use of GLP-1 drugs for weight loss and obesity treatment.
The report warned that these drugs could broadly reduce food consumption. "Some projections suggest grocery basket sizes could decline by as much as 31% among active users (of GLP-1s)," CoBank wrote. While not exclusively targeting sweets, a general reduction in food purchasing would inevitably impact demand for sweetened products.
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