India's sugar demand growth has significantly slowed from over 4% annually pre-pandemic to a projected marginal increase of 1.42% this fiscal year, according to industry estimates. This flattening trend is attributed to rising health concerns, particularly diabetes, shifting dietary habits, and a move towards alternative sweeteners, especially among younger consumers. Projections suggest consumption may even decline from the next financial year, impacting India's position as the world's second-largest sugar producer.