The UN agency overseeing global food and agricultural markets points to rising prices in its latest monthly price report. Sugar, a key ingredient across many food categories, shows a notable climb. Last year, this staple rose 48.3 percent in international markets, reaching 162.7 on the FAO Sugar Price Index. The increase marks a level not seen since November 2010. In Spain, sugar has climbed about 40.5 percent since September 2022. This situation triggers questions about sugar as a new nutritional factor and whether inflationary pressures in staples like olive oil could persist for several months.
1. What drove the price rise?
Several factors explain the global sugar price surge. The FAO Sugar Price Index reflects supply constraints and higher production costs. In key producing regions, weather challenges have stunted harvests. El Niño-related conditions have disrupted sugar cane outputs in countries such as Thailand and India, while higher energy costs have added to processing expenses. The phenomenon, which intensified this year, tends to shift rainfall patterns and can amplify drought in normally wet regions, affecting crop yields and timing.
Analysts note that Brazil remains the world’s leading sugar cane producer and exporter. Although harvests in Brazil are expected to rise by around 6.9 percent this year, currency weakness against the US dollar helps temper price gains from month to month. Brazil’s robust output supports global supply, but it cannot fully offset demand growth and the sustained costs of production in other regions.
2. How have prices evolved in recent years?
The September average sugar price index stood at 162.7 points — up 9.8 percent from the prior month and 48.3 percent higher than September 2022. Such levels are described as among the most volatile in over a decade. Weather conditions have weighed on growers, while non-producing markets have shown renewed demand, necessitating imports. The year 2010 is often cited as a reference point for volatility in sugar markets within the last thirty years.
In Spain, domestic market data reflect the global trend. Sugar prices rose about 40.5 percent last year, according to the latest consumer price indicators, with a modest 0.4 percent monthly uptick between August and September. Still, these domestic increments have not fully translated into retail price spikes in every instance. In many major supermarkets, a kilogram of white sugar now costs around 1.45 euros, compared with roughly 0.97 euros two years earlier. These movements illustrate how international price dynamics interact with local pricing and consumer demand.
3. Which products feel the impact most?
Sugar’s influence is deeply embedded across the agri-food sector. Unlike olive oil, which is driven by high local consumption in Spain, sugar is a common ingredient across many products. It directly affects consumer goods such as jams, dairy desserts, pastries, cookies, and beverages. Sugar participates in production, processing, preservation, and packaging. As prices rise, a wide range of items — from sugary drinks and bakery items to tomato sauces, yogurts, cereals, and baby foods — may see higher costs or altered formulations. This ripple effect highlights sugar’s central role in the food system and its sensitivity to global price swings.
4. What options exist for consumers?
Consumers have several alternatives to manage rising sweetener costs. Natural sweeteners like stevia, derived from the stevia plant, offer a calorie-light option. Xylitol, sourced from corncobs or birch trees, appears in many foods as a sugar substitute. Other natural options include honey, cane sugar substitutes, and maple syrup, all commonly recommended by nutrition experts as part of a balanced approach to sweetness. For industry, beet sugar remains a traditional cane alternative in some regions and can influence pricing dynamics as producers weigh beet-based supply against imported beet or cane products. In Spain, the long-standing tradition of sugar beet processing contributes to domestic supply, but global competition and logistics continue to shape availability and price.