Sugar prices fall, as anti-obesity drugs result in people eating less sweets

“Sugar prices are at their lowest level since 2020, and financial analysts credit falling demand driven by GLP-1 weight loss drugs,” reports The Doomslayer.

The Financial Times explains:

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 on Wednesday, 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.

So-called GLP-1 weight-loss injections — which work by activating the glucagon-like peptide 1 receptor hormone that makes people feel fuller — have been a crucial driver of reducing cravings for sweet flavours. 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,’ said Gurdev Gill at broker Marex, adding that Mexico and the US have been the clearest examples, while demand data in Europe has also been ‘challenging’ for sugar prices.”

America is one of the ten fattest countries in the world, but it has stopped getting fatter, due to weight loss drugs.

“Gallup polling finds that self-reported obesity in the US has been falling since 2022, an encouraging finding that is broadly consistent with CDC data showing a small recent dip in measured obesity rates,” noted The Doomslayer.

Gallup added:

After peaking at a record high of 39.9% in 2022, the U.S. adult obesity rate has gradually declined to 37.0% in 2025. This is a statistically meaningful decrease representing an estimated 7.6 million fewer obese adults compared with three years ago. Meanwhile, diagnoses of diabetes — a lifetime disease that can be managed but not cured — have now reached an all-time high of 13.8%. Both metrics are part of the ongoing Gallup National Health and Well-Being Index…

The most recent results are based on combined data from three nationally representative surveys of 16,946 U.S. adults interviewed by web in the first three quarters of 2025 using the probability-based Gallup Panel. Gallup uses respondents’ self-reported height and weight to calculate body mass index (BMI) and subsequent weight classes. A ‘vanity effect’ in how respondents present themselves may explain why Gallup’s obesity estimates are typically somewhat lower than those obtained from studies that use randomized clinical measurements. However, because Gallup’s method of collecting self-reported weight and height has been consistent, the trend still provides valuable information regarding changes over time.

As The Economist noted, weight-loss drugs appear to be the reason obesity has finally stopped increasing.

We have known for several years from clinical trials that Ozempic, Wegovy and the new generation of diabetes and weight loss drugs produce large and sustained reductions in body weight. Now with mass public usage taking off — one in eight US adults have used the drugs, with 6 per cent current users — the results may be showing up at the population level.

While we can’t be certain that the new generation of drugs are behind this reversal, it is highly likely. For one, the decline is steepest among college graduates, the group most likely to be using them….almost by magic, these new drugs remove the requirement for superhuman willpower, making us feel fuller, reducing our appetite and alleviating cravings.