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Sugar Consumption Is Slowing Amid Obesity and Diabetes … – Bloomberg

August 20th, 2017 12:44 am

Cutting back on sugar? So is much of the world.

The changecan be attributed to several factors, according to a new report from Rabobank,including warnings about rising obesity rates, government initiatives like soda taxes, and manufacturers commitments to reformulatingprocessed foods to lower their sugar content.

Nor are emerging markets likely to provide a robustalternative for the sugar industry. Rising incomes tend to slow the consumption ofprocessed foods, and sugar with them.

This whole movement has gone beyond the fad stage and become a trend, saidAndy Duff, a global strategist at RaboResearchand an author of the report. It does give the market a shake. Were saying its something you shouldnt dismiss.

The trend is evident at the grocery store and in the news.Snacks are getting healthier. People are drinking less soda. Processed foods once heavy on the corn syrupare being replaced with those bearingclean labels and shorter ingredients listsso artificial sweeteners arent taking sugars place.

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U.S. cities from Oakland to Philadelphiahave started taxing sugar-sweetened beverages, as have countries around the world, including Mexico, where two-thirds of the adult population is obese, and Mauritius, which has a major sugar-producing industry. Companiesare trying to meet consumer demands by announcing cuts to their sugar usage, with reductions or planned reductions coming from Mars Inc., Kellogg Co., Unilever NV, and plenty more.

Rising incomes incountries where sugar consumption has been growingare changing consumer habits, moving those regions from what the report calls sugarsrapid-growth zone to the moderate-growth zone.RaboResearch concludes thatthe rate of growth of global sugar consumption in the coming 15 years is likely to be lower than the growth rate seen in the last 15 years.

Because nobody directly measures sugar consumption, Duff said,were operating against a considerable degree of uncertainty.He stressedthat sugar consumption is still expected to grow, just at a slower pace than would have been projected a decade ago.

Were not talking about a reversal here, he said, predicting insteadshort-term turbulence and lower growth in the future.

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Sugar Consumption Is Slowing Amid Obesity and Diabetes ... - Bloomberg

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