Global sugar prices have risen sharply in August, with benchmark futures reaching their highest level in more than a year, according to ICE Futures data.

The increase has drawn attention to developments in the global sugar market, including production and consumption trends in major producing regions.

How much have sugar prices increased?

On August 28, the October sugar futures contract rose 1.76% to 18.54 cents per pound. According to ICE Futures data, this was the highest level recorded since April 8, 2025.

The increase has been particularly strong over the course of August. Sugar prices have risen 26.5% since the beginning of the month, highlighting the scale of the recent rally in the international market.

What is happening in the global sugar market?

The global sugar market has seen increases in both production and consumption during the 2025/26 season. Global sugar production rose 4.6% year-on-year to 189.3 million tonnes.

At the same time, global consumption increased by 1.3% to 178.7 million tonnes. This means that production remains higher than consumption based on the available 2025/26 figures, even as demand continues to grow.

Which countries produce the most sugar?

Brazil, India and the European Union remain the world's leading sugar producers and therefore play an important role in global supply.

Brazil accounted for approximately 23.5% of global sugar production during the 2025/26 season. India was the second-largest producer, with an 18.6% share, while the EU accounted for 8.2%.

Changes in production levels in these major markets can have a significant influence on international sugar prices and trading expectations.

What is the ICE sugar price?

The ICE Sugar No. 11 futures contract is a major benchmark for raw sugar traded on international markets. The futures price is quoted in cents per pound and reflects market trading and expectations for raw cane sugar.

The October contract referenced in the latest data reached 18.54 cents per pound on August 28, marking its highest level since April 2025.

Does a rise in sugar futures mean retail prices will immediately increase?

Not necessarily. A rise in futures prices does not automatically translate into an immediate increase in the price consumers pay for sugar in supermarkets or for products containing sugar.

Retail prices are influenced by a wider range of factors, including local production, import costs, transportation, currency exchange rates, taxes and other market conditions. Food manufacturers and retailers may also respond to changes in raw material costs at different times.

Is the increase a sign of a global sugar shortage?

The available production figures do not, by themselves, indicate a global sugar shortage. Global production in the 2025/26 season is estimated at 189.3 million tonnes, compared with consumption of 178.7 million tonnes.

However, global prices can rise even when overall production exceeds consumption. Futures markets respond to a range of factors, including expectations about future supply and demand, conditions in major producing countries and broader market sentiment.

What does the latest price increase mean?

The recent rally shows that the international sugar market is experiencing significant price pressure. With sugar futures up 26.5% since the beginning of August and reaching their highest level in more than a year, market developments are attracting increased attention.

At the same time, global sugar production remains higher than consumption according to the 2025/26 figures. The price increase therefore reflects conditions and expectations in the international market rather than necessarily indicating an immediate shortage of sugar worldwide.