The cost of sugar experiences a significant decrease.
In the past years, sugar prices in Germany have climbed steadily. However, some good news is on the horizon as prices are anticipated to fall substantially. Aldi Nord, Aldi Süd, Edeka, and Netto have announced that their 1kg pack of private-label sugar will now be sold for 89 cents, down from the previous 1.49 euros. Other large supermarket chains and discount retailers are following suit, with Kaufland and Lidl pricing their packs at 99 cents this week. Rewe, Penny, and Norma are also matching this lower price point. The retailers attribute the price drop to a decrease in raw material costs. Moreover, prices for other sugar products like powdered sugar and jam sugar are also projected to decrease.
Food items, in general, have seen an increase in cost due to inflation in Germany. According to the Federal Statistical Office, consumers had to spend 32.4% more on average for food and non-alcoholic beverages in August 2024 compared to 2020. Sugar is one of the goods that experienced the most significant price hike, with its cost growing by over 82% in the same period.
Smhaggle's price comparison data reveals that the shelf price for a 1kg pack of store-brand sugar was still 79 cents in January 2022 across most major retailers. But, by December of the same year, that price jumped to 1.49 euros. The German Sugar Industry Association pointed out that the main reasons for the price rise were increased costs for energy, raw materials, and labor. In December 2023, the European internal market saw its sugar price peak at 856 euros per tonne. The current trend is influenced by oil prices, and it reflects the sugarcane harvest outlook in countries such as Brazil, Thailand, and India.
Despite the overall rise in food prices due to inflation, other large supermarket chains and discount retailers, besides Aldi Nord, Aldi Süd, Edeka, and Netto, are reducing the price of their private-label sugar to 99 cents, following the leading retailers. Additionally, the projected decrease in prices for other sugar products like powdered sugar and jam sugar is expected to provide relief to consumers who have been heavily impacted by the increase in sugar costs.
