Sugar demand in India flattens amid diabetes concerns and diet shifts: Report

In the years before the pandemic, India—now the world’s second-largest sugar producer—saw sugar demand expand at an annual pace of over 4%. That momentum has faded.

From jalebis and rasgullas to gulab jamuns, sugar has long been woven into India’s social and cultural rituals, featuring prominently at weddings, festivals and everyday celebrations. That deep-rooted preference, however, is showing signs of fatigue as rising health concerns and shifting food habits—especially among younger consumers—begin to curb demand, a Mint report said.

Industry estimates suggest growth in table sugar consumption will be marginal this year, the report said. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA), which represents private sugar mills, projects an increase of just 1.42 percent in the current fiscal. Another industry group expects demand to slip into decline from the next financial year, the paper said.

The projections point to a clear flattening of consumption trends. In the years before the pandemic, India—now the world’s second-largest sugar producer—saw sugar demand expand at an annual pace of over 4 percent. That momentum has faded. ISMA expects domestic consumption to edge up only slightly to about 28.5 million tonnes in 2025–26, from 28.1 million tonnes the year before. The slowdown, ISMA director general Deepak Ballani told Mint, reflects greater health awareness, changing diets and a gradual shift towards alternative sweeteners and lower-sugar processed foods.

Even so, the FY26 estimate remains well below the 29 million tonnes consumed in FY24. The trend carries broader public health implications for India, which has the second-largest diabetes population globally at around 100 million, with another 136 million classified as pre-diabetic. Excess sugar intake is closely linked to type-2 diabetes, obesity, cardiovascular disease and other metabolic disorders.