In this article, we will discuss the 7 Best Sugar Stocks to Buy According to Analysts.
The global food and beverage sector depends heavily on the sugar industry, which supplies a vital component for everything, from packaged meals and drinks to confectionery products. While traditional sugar production has been a reliable source of income for many years, new developments in alternative sweeteners, regulatory restrictions, and consumer tastes have changed the market and created new avenues for expansion and investment.
The demand for sugar remains high despite fluctuations in the global supply. The most recent World Agricultural Supply and Demand Estimates (WASDE) study projects that reduced cane sugar yields will cause U.S. sugar output to drop to 14.39 million short tons in the 2024–2025 season. Similarly, Mexico’s sugar output forecast has been lowered, mostly because of lower harvest quantities and a slower rate of sucrose recovery. However, rising middle-class populations in developing nations, increasing consumption of processed foods, and the ongoing demand for sugar-based goods, all contribute to the world’s rising sugar consumption.
Nevertheless, conventional sugar production is no longer the only focus of the sugar industry. A shift is occurring as health-conscious consumers actively seek healthier alternatives. About 35% of all non-alcoholic beverage releases in the last year featured no-sugar or low-sugar formulations, according to a GlobalData report, indicating that sugar reduction claims have taken center stage in the beverage industry. Major food and beverage companies have been forced to diversify as a result of this change, looking into sugar substitutes and natural sweeteners. As a result, companies are keen to meet the changing demands of a more health-conscious population, which is leading to increased investment in the sugar sector.
Therefore, companies are coming up with innovative ideas and solutions in response to these shifts, such as plant-derived sugar substitutes or artificial sweeteners. Large multinational corporations are growing their lower-sugar product lines, indicating a more significant change in the sector.
In addition to food and beverages, sugarcane and sugar beets are essential to the biofuel sector. More than half of Brazil’s sugarcane harvest is used to produce ethanol, making it the world leader in sugar-based ethanol production. This need is only likely to increase in the years to come. Sugar is a renewable energy source that is becoming increasingly important as the ethanol industry grows. Hence, sugar is an essential part of the global economy, extending beyond food and beverages, as sugar compounds are utilized extensively in industrial, medicinal, and cosmetic products.
While certain companies integrate sugar-based components into a wider range of products, others make significant profits from conventional sugar production. Thus, selecting the correct stocks is essential for investors hoping to profit from the rapidly evolving sugar sector.
With this, let’s take a look at the 7 Best Sugar Stocks to Buy According to Analysts.
Photo by Victoria Priessnitz on Unsplash
Methodology
To compile our list of the 7 Best Sugar Stocks to Buy, we first identified companies operating in the sugar industry, including those involved in sugar production, sweeteners, and sugar-related ingredients. We focused on stocks with strong market capitalization and a notable presence in the sector.
Next, we analyzed institutional interest by determining the number of hedge funds which hold a stake in the company, as of Q4 2024. Hedge fund ownership data was sourced from Insider Monkey’s hedge fund database, which tracks the activity of over 1,000 hedge funds. A higher number of hedge fund holders often indicates confidence in a company’s growth potential and stability.
To assess the potential upside, we gathered analyst forecasts from credible sources. The highest projected upside for each stock was taken into account to ensure an accurate representation of growth expectations. Finally, we ranked the stocks based on their potential upside in ascending order.
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7. The Coca-Cola Company (NYSE:KO)
Upside Potential: 5.00%
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) holds a strong market presence with a wide product range that includes soft drinks, juices, teas, and dairy-based beverages, making it a longstanding dominant force in the global beverage sector. With a wide distribution network and an impressive capacity to adapt to changing customer tastes, Coca-Cola has established itself as one of the best sugar stocks to buy.
With a strong 7% increase in comparable earnings per share in the year ended December 31, 2024, The Coca-Cola Company (NYSE:KO) demonstrated its resilience despite a shifting economic situation. Furthermore, a 2% rise in unit case volume and well-executed pricing initiatives supported the 14% organic revenue growth for Q4 2024. The company’s primary sector is still the sale of carbonated soft drinks, where well-known brands like Sprite and Coca-Cola continue to dominate the market. Furthermore, the company’s expansion into the value-added dairy and tea sectors has opened up new growth prospects, especially in international markets where demand is rising.
The Coca-Cola Company (NYSE:KO) is also benefiting from the power of digital transformation, which has improved its capacity for distribution and customer interaction. Nearly 600,000 new coolers were introduced by the corporation in 2024, increasing product availability and driving higher sales through retail channels. Its emphasis on premium and single-serve products has also helped to boost sales, indicating the company’s strategic focus on meeting customer demands for quality and convenience.
The Coca-Cola Company (NYSE:KO)’s strong cash flow supports its investment plans and guarantees steady returns for shareholders. As evidence of its sound financial standing and commitment to providing investors with value, the company has increased dividends for 62 consecutive years. Analysts predict that the company’s share value will rise by 5%, indicating their confidence in its prospects.
For investors hoping to profit from the changing beverage market, The Coca-Cola Company (NYSE:KO) is an appealing option due to its extensive global reach, strong brand, and unwavering dedication to innovation.
6. Monster Beverage Corporation (NASDAQ:MNST)
Upside Potential: 6.00%
Number of Hedge Fund Holders: 52
In the energy drink sector, Monster Beverage Corporation (NASDAQ:MNST) has made a name for itself by providing a variety of drinks that satisfy consumers who choose sugary or sugar-free options. Analysts rank Monster as one of the top sugar stocks to purchase due to its strong presence in the energy drink market and growing product lines, indicating its remarkable growth potential.
For Q4 ended December 31, 2024, Monster Beverage Corporation (NASDAQ:MNST) reported record net sales of $1.81 billion, a 4.7% rise from the prior year, despite challenges from unfavorable international exchange rates. Due to strong demand, sugar-based beverages, especially Juice Monster and other full-sugar products, continue to be a major source of income for the company. Monster’s growing range, which includes new flavor releases such as Ultra Vice Guava, Viking Berry, and Blue Hawaiian, demonstrates its capacity for innovation. Additionally, the company’s debut in the coffee industry with products like Loca Moca and Killer Brew Mean Bean strengthens its position in the market.
Monster Beverage Corporation (NASDAQ:MNST) has maintained a solid position in the energy drink industry despite intense competition. Furthermore, by entering the alcoholic beverage industry and introducing new products under the Beast brand, Monster extends its market reach and opens up another potentially profitable revenue stream.
All things considered, Monster Beverage is well-positioned for future expansion and success thanks to its unwavering focus on product innovation, which includes both sugary and sugar-free options. Monster continues to be a major force in the energy drink market and an alluring option for investors hoping to profit from the sector’s rapid growth, thanks to its solid business strategy and steadily rising demand for its drinks.
5. Mondelez International, Inc. (NASDAQ:MDLZ)
Upside Potential: 6.34%
Number of Hedge Fund Holders: 55
A global leader in the sugar-based food sector, Mondelez International, Inc. (NASDAQ:MDLZ) offers an extensive portfolio that includes some of the most well-known sweet brands in the world, including Oreo, Chips Ahoy!, Cadbury Dairy Milk, and Toblerone. As the demand for sweet treats from consumers around the world continues to rise, Mondelez has maintained a strong presence in the chocolate, biscuit, and confectionery industries.
The steady customer demand for Mondelez’s sugar-based goods drove the company’s 4.3% organic net revenue growth in the year ended December 31, 2024. The company effectively implemented pricing strategies despite growing input costs, increasing gross profit by 5.1%. A significant contributor to this expansion was emerging markets, where revenue increased 6.2%.
Furthermore, Mondelez International, Inc. (NASDAQ:MDLZ) returned $4.7 billion to shareholders in dividends and share buybacks, demonstrating its sound financial standing. The board recently announced a $0.47 quarterly dividend per share, payable April 14, 2025. Thus, strong investor confidence in Mondelez’s portfolio was reinforced by this impressive performance, which helped the company’s shares rise 10.72% YTD.
Moreover, Mondelez International, Inc. (NASDAQ:MDLZ) has explored new products and strategic alliances to broaden its market reach. Its multi-year collaboration with Inter Miami CF was one noteworthy step that enabled the company to reach a wider audience with its well-known brands, such as Ritz and Oreo. Furthermore, Mondelez has used new pricing-packaging strategies to reach a wider audience. For example, it has created new stack packs for Oreo, Ritz, and Chips Ahoy! that offer convenient serving sizes at different price points. By acquiring a majority stake in Evirth, the company has also continued to diversify its portfolio, most notably into China’s growing market for frozen-to-chilled baked snacks.
Mondelez International, Inc. (NASDAQ:MDLZ) still faces challenges despite its achievements. Most notably, the fluctuating price of cocoa has had a significant impact on the pricing of its chocolate products. In order to manage these cost challenges, the company is implementing efficiency measures and systematic pricing adjustments. Despite these challenges, Mondelez maintains its strategic position in the sugar sector by making ongoing investments in product innovation, distribution, and brand expansion.
4. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Upside Potential: 7.33%
Number of Hedge Fund Holders: 39
Keurig Dr Pepper Inc. (NASDAQ:KDP) has made a name for itself in the beverage sector by providing a diverse range of products, including coffee, flavored beverages, and soft drinks. A combination of strategic acquisitions, increased distribution efforts, and innovation has allowed the company to maintain its leading position in a cutthroat market. Given this, Keurig Dr Pepper is listed among the 7 best sugar stocks to buy according to analysts.
With a noteworthy 10% increase in Q4 revenue, Keurig Dr Pepper Inc. (NASDAQ:KDP)’s U.S. Refreshment Beverages division has been one of the main drivers of its growth. With the help of clever marketing strategies and the launch of new flavors like Dr Pepper Blackberry, the flagship brand, Dr Pepper, has maintained its market share growth. Furthermore, KDP’s premium brand Bai has expanded its market reach by offering fruit-based choices, which have improved the company’s standing.
Another key factor in Keurig Dr Pepper’s success has been its strategy to expand its distribution network. The company has incorporated brands including GHOST Energy, an energy drink, and Electrolit, a hydration-focused beverage, into its direct-store-delivery (DSD) system. While GHOST Energy gives Keurig Dr Pepper Inc. (NASDAQ:KDP) a competitive edge in the rapidly growing energy drink market, Electrolit is being positioned strategically for entry into mainstream retail. In addition to broadening KDP’s sources of income, these acquisitions give the company access to rapidly growing markets with significant potential.
3. PepsiCo, Inc. (NASDAQ:PEP)
Upside Potential: 8.68%
Number of Hedge Fund Holders: 69
In the global food and beverage market, PepsiCo, Inc. (NASDAQ:PEP) has solidified its position as a leading competitor, especially in the sugar-sweetened sector. Listed among the 7 best sugar stocks to buy, the company is dedicated to diversifying its portfolio and making strategic reinvestments.
Due to an extensive selection of snacks and beverages, the company’s growth trajectory remains strong, as indicated by the considerable sales gain of 2.1% in Q4 ended December 28, 2024. However, with an EPS of $0.13 compared to the projected $0.19, earnings fell short of expert estimates. PepsiCo, Inc. (NASDAQ:PEP) has increased its annual dividend by 7% to $1.355 per share, to increase shareholder returns, demonstrating its confidence in its financial stability.
PepsiCo, Inc. (NASDAQ:PEP)’s strategy is centered on innovation and diversification. The company paid $1.2 billion in January 2025 to acquire Siete Foods, a developing company known for its plant-based and grain-free snacks. PepsiCo’s position in the health-conscious market is strengthened by this acquisition. Despite these initiatives, the company’s primary business is still centered around sugar-sweetened goods under well-known brands like Pepsi, Tropicana, Gatorade, and Mountain Dew. The company’s strategy is to provide a well-rounded assortment that accommodates both indulgence and the changing tastes of today’s customers.
Moreover, PepsiCo, Inc. (NASDAQ:PEP) is adjusting by improving its pricing and distribution tactics in response to changing marketplace dynamics. The optimization of its price pack design is one key initiative that provides customers with greater choice and control over portion sizes for its sugary drinks and snacks. With this strategy, the company may reach customers at several price points, maintaining accessibility and continuous brand engagement.
2. Archer-Daniels-Midland Company (NYSE:ADM)
Upside Potential: 12.80%
Number of Hedge Fund Holders: 38
Archer-Daniels-Midland Company (NYSE:ADM) has cemented its position as a major player in the sweetener and carbohydrate sectors. In 2024, the company’s Carbohydrate Solutions division, which produces glucose, high-fructose corn syrup, and other sweeteners, reported an operating profit of $1.4 billion. The company’s resilience and operational efficiency were highlighted by the strong margins and volumes in North America, which helped counterbalance the lower ethanol and co-product values in the EMEA (Europe, the Middle East, and Africa) region.
In its financial performance results for the year ended December 31, 2024, Archer-Daniels-Midland Company (NYSE:ADM) reported adjusted earnings per share (EPS) of $4.74 for the entire year, with its reported EPS at $3.65. Adjusted net earnings came to $2.3 billion, while net earnings stood at $1.8 billion. Growth in North America’s volumes and margins contributed to the improvements during the year, while weaker ethanol and by-product sales in EMEA offset the growth. Reaffirming its commitment to long-term stability, ADM announced a set of focused initiatives to further strengthen its financial position. These actions are expected to provide cost savings of $500 to $750 million over the next three to five years.
Furthermore, Archer-Daniels-Midland Company (NYSE:ADM) raised its quarterly dividend by 2% to $0.51 per share, demonstrating its commitment to shareholder value. Additionally, the company expanded its share repurchase program by 100 million shares over the following five years.
Archer-Daniels-Midland Company (NYSE:ADM)’s strategic objectives also demonstrate the company’s dedication to expanding its presence in the sugar and sweetener industry. A significant part of the company’s portfolio, the Starches & Sweeteners subsegment, reported a 1% increase in operating profit, indicating consistent demand for sugar-based ingredients, such as glucose and dextrose. Additionally, increased North American volumes and enhanced plant efficiencies contributed to a 3% improvement in operating profit for ADM’s Carbohydrate Solutions division in Q4. These outcomes highlight ADM’s ongoing emphasis on innovation and operational efficiencies.
Archer-Daniels-Midland Company (NYSE:ADM)’s dedication to sustainability was demonstrated when it received the 2025 BIG Innovation Award for its regenerative agriculture initiative. The company is positioned for future growth and efficiency through its investments in digitization and facility modernization.
1. Ingredion Incorporated (NYSE:INGR)
Upside Potential: 21.84%
Number of Hedge Fund Holders: 36
Ingredion Incorporated (NYSE:INGR) is the world’s largest supplier of ingredient solutions, with a focus on biomaterials made from maize and other starch-based materials, sweeteners, and starches. The company is a major player in the changing sugar market, with a diverse clientele spanning sectors like food and beverage, medicines, and manufacturing.
Due to reduced maize prices, Ingredion Incorporated (NYSE:INGR)’s fourth-quarter net sales declined by 6%, amounting to $1.8 billion. Nonetheless, the company’s gross profit increased by 12%, indicating its flexibility in responding to market shifts. It reported a record gross profit of $1.8 billion and net sales of $7.4 billion for the full year. Its margins increased by 270 basis points to 24.1%. The company’s high-margin specialty ingredients business, which experienced a 5% year-over-year growth in adjusted operating income, was the main driver of these results.
Despite lower demand for particular sweeteners, Ingredion Incorporated (NYSE:INGR) has been able to stay profitable by modifying its pricing and controlling input costs. Due to successful contract renewals and operational savings, the company’s operating income increased by 25% in the U.S. and Canada, even though net sales decreased by 8%.
Furthermore, Ingredion Incorporated (NYSE:INGR)’s approach remains centered on innovation. Its new collaboration with Oobli aims to complement other natural sweeteners like stevia by introducing sweet proteins as a sugar substitute. Its continued investment in sugar substitutes has enhanced its ability to assist food and beverage industries in achieving cost-effectiveness and nutritional objectives.
Ingredion Incorporated (NYSE:INGR)’s excellent financial standing, organizational efficiency, and ongoing leadership in sugar reduction all contribute to its value as an investment. Focusing on future sugar solutions, Ingredion is well-positioned as one of the 7 best sugar stocks to buy according to analysts.
Overall, Ingredion Incorporated (NYSE:INGR) ranks first on our list of the best sugar stocks to buy according to analysts. While we acknowledge the potential of INGR, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INGR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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