After a long history of sweet success, the sugar industry is now facing the very bitter reality of having too much supply and not enough demand.
Harvested primarily from sugar cane and sometimes beets, sugar’s sweet taste has made it popular across countless cultures throughout time. It was first domesticated and cultivated sometime around 8000 B.C. by the people of New Guinea, which would eventually lead to it being extensively cultivated throughout Southeast Asia.
India, in particular, would develop a refining process that would transmute the sweet cane juice into the granulated crystals we know today. Sugar is easily one of the most crowd-pleasing agricultural developments in human history.
Although its flavor has enticed and delighted throughout the ages, sugar has been linked to a number of serious health issues, including diabetes, obesity, heart disease, tooth decay, and even Alzheimer’s disease. In recent years, consumers have become increasingly focused on finding sugar substitutes and seeking out low- to no-sugar foods.
This marks a major shift in consumer habits. Despite its historical prevalence and dependability as a profitable crop, the demand for sugar is now on a steady decline and is expected to continue its downward trajectory. Simultaneously, there is also a record surplus in the global sugar supply.
This increase in supply stems from countries such as India and Thailand, which are producing unprecedented yields. The 2017-2018 global sugar supply has been estimated to be as much as 20 million tons, while the forecast for 2018-2019 is estimated at 15.9 million tons.
With consumer interest dwindling, sugar producers around the world now find themselves with a surplus of the sweet stuff and not enough demand to sell it at a profitable price. As a result, the cost of sugar is crashing faster than one’s energy after a candy binge.
In spite of the lower prices, demand for sugar doesn’t appear to be picking up anytime soon, leaving sugar producers across the world wondering how to move forward.
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