European sugar industry faces factory closures amid falling prices

The European sugar industry is experiencing an acceleration in factory closures due to falling wholesale prices and rising production pressures. Since the European Union abolished sugar production quotas in 2017, approximately 23 factories have closed, representing about one-fifth of the region’s total production capacity.

According to European Commission data, wholesale sugar prices dropped from €844 per tonne to €510 per tonne over the two-year period ending in March 2026. This decline is attributed to ample supplies from strong beet harvests combined with weakening sugar consumption across Europe.

Nordzucker has already permanently closed its factory in Trenčianska Teplá, Slovakia. The company is also planning further restructuring, including the planned closure of its Nakskov plant in Denmark in early 2027, the discontinuation of raw sugar refining at its Porkkala facility in Finland, and the closure of its Cantley plant in the United Kingdom.

Additionally, Tereos TTD, the largest sugar producer in the Czech Republic, has reduced its investment plans and warned that further closures may be necessary if prices remain low. Producers face increased competition from cheaper imports from regions with less stringent regulatory and production requirements.