Major German retailers have announced significant price cuts for sugar. This move comes after years of steep price increases, offering relief to consumers who have been paying more for this staple product.
Sugar prices plummet
Several leading supermarket chains and discounters in Germany are reducing their sugar prices substantially. Aldi Nord, Aldi Süd, Edeka, and Netto have slashed the price of their 1-kilogram store-brand sugar from €1.49 to €0.89. Other major retailers are following suit, with Kaufland and Lidl now offering sugar at €0.99 per kilogram, while Rewe, Penny, and Norma are reducing their prices to the same level. The retailers attribute these price cuts to declining raw material costs. They also announced that prices for other sugar products, such as powdered and gelling sugar, are expected to drop as well.
Inflationary pressures and market trends
The price reductions come after a period of significant inflation in food prices across Germany. According to the Federal Statistical Office, in August 2024, consumers were paying an average of 32.4% more for food and non-alcoholic beverages compared to the average prices in 2020. Sugar was among the products that experienced the highest price increases, with a kilogram costing over 82% more in August 2024 than it did four years earlier.
Data from the price comparison portal Smhaggle reveals the extent of these increases. In January 2022, a kilogram of store-brand sugar at all major retail chains cost €0.79. By December of the same year, the price had jumped to €1.49.
The German sugar industry attributes these price hikes primarily to rising costs for energy, raw materials, and personnel. According to the industry, the average price of sugar in the European internal market peaked at €856 per tonne in December 2023.
Current market influences
The industry association notes that the current price trends are influenced by crude oil prices and reflect harvest prospects for sugarcane in countries like Brazil, Thailand, and India. These global factors play a significant role in determining sugar prices on the European market.
As retailers implement these price reductions, consumers can expect to see more affordable sugar on store shelves. This change may provide some relief to household budgets that have been strained by the overall increase in food prices over the past few years.
