By Marcelo Teixeira
NEW YORK, Feb 20 (Reuters) – The U.S. sugar industry could be impacted by regulatory changes as the federal government prepares to implement stricter dietary guidelines that could further reduce domestic demand for the sweetener, a top industry executive said on Thursday.
New school meal standards, updated dietary recommendations calling for zero added sugars, and rising use of GLP-1 weight-loss drugs could reduce sugar consumption at a time when federal agencies are also working to define what is classified as “processed food,” potentially triggering new labeling requirements or taxes on products.
Courtney Gaine, president and CEO of the Sugar Association, a scientific body which supports the U.S. sugar industry, told the USDA Outlook Forum that the school meal standards taking effect next year might prohibit added sugars in kindergarten meals and significantly restrict them in other grades. That change alone would cut sugar demand by over 130,000 short tons.
“Right now it is kind of a storm, a lot of disinformation, a lot of fear,” Gaine said, adding that sugar appears to be “the low-lying fruit” for regulators despite, according to her, a lack of evidence that restrictions will improve health.
The industry faces additional pressure from rising GLP-1 weight-loss drug usage, which jumped from 12% in May 2024 to 18% in November 2025, though Gaine cautioned it remains “premature to assess the impact.”
“If you are going to have some policy, you should have evidence that it is going to work,” Gaine said, noting that while the “Make America Healthy Again” movement polls well, scientific evidence supporting sugar restrictions remains elusive.
There are many studies, however, defending the reduction of added sugars in food.
An umbrella review published in the BMJ, one of the world’s oldest and most influential general medical journals, found harmful associations between higher dietary sugar intake and health – including metabolic and cardiovascular risks – supporting public health recommendations to reduce added sugars in foods.
(Reporting by Marcelo Teixeira; Editing by Aurora Ellis)
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