Weight-Loss Drugs Hammer U.S. Sugar Beet Farmers as Demand Crashes

U.S. sugar beet farmers are battling one of their worst slumps in decades as the rapid rise of weight-loss drugs like Wegovy and Ozempic reshapes eating habits across America.

According to industry data, refined beet sugar prices have dropped by more than 30% compared to last year, marking their lowest levels since 2019. Analysts warn that oversupply and weak demand could persist well into 2026, leaving many small farmers struggling to survive.

The surge in appetite-suppressing medications has sharply reduced consumption of sweet products—from candies and soft drinks to baked goods—directly impacting the sugar market. Nearly one in ten Americans now use GLP-1 weight-loss drugs, cutting deep into what was once a reliable demand for sugar.

Adding to the pressure, farmers face soaring costs of fertilizers, fuel, and equipment, along with competition from cheaper imported sugar. Despite government quotas meant to shield local producers, global oversupply continues to weigh heavily on U.S. prices.

Some processing plants across the Midwest have scaled back operations, while others risk closure as growers reduce acreage. Experts predict 2025 could see the smallest sugar beet crop since the early 1980s.

For many in the “Beet Belt,” the once-steady crop has turned into a financial burden—proof that even traditional farming is not immune to modern health trends.