Is sugar a good investment?

Sugar can be a good investment. We have a nearly insatiable appetite for sugar, which is driving growing demand for sweet drinks and foods. Meanwhile, a growing global middle class is also driving increasing demand for sugar. These catalysts should benefit sugar stocks going forward. However, since excess sugar is harmful to our bodies, an increasing focus on healthier options could reduce future sugar demand.

Which sugar stock gives the highest dividend?

As of mid-2026, Mondelez International and Nestlé had the highest dividend yields among the top sugar stocks, at over 3%.

What is the biggest sugar company?

ASR Group is the world's largest refiner and marketer of cane sugar.

What is the future of sugar shares?

No one can accurately predict the future of the sugar industry. However, according to the USDA, the sugar supply is on the rise, driven in part by expected record U.S. sugar production. This could put downward pressure on sugar prices, hurting producers while potentially benefiting companies that use sugar to make other products.

Are sugar stocks cyclical?

Sugar stocks can be cyclical. Demand for sugar ebbs and flows with the economy and changing consumer tastes.

How volatile are sugar stocks compared to other commodities?

Sugar is often one of the most volatile commodities, which can significantly impact companies that produce commodity sugar. However, it tends to have a lesser impact on companies that use sugar to make higher-value products such as soda, candy, and desserts. That makes these sugar stocks less volatile than others with more direct exposure to commodity prices.

How do global sugar prices affect sugar companies?

Global sugar prices tend to have the greatest impact on companies that produce commodity sugar. Meanwhile, higher sugar prices raise the costs of companies that use it to make sodas, candies, and desserts, though to a lesser extent, since it's typically not their biggest cost driver.

Are sugar stocks good for short-term or long-term investing?

Sugar stocks are good for long-term investment. It's very difficult to invest in any stock short-term due to the potential for unexpected near-term issues, such as volatile sugar prices, supply issues, or lower-than-expected demand, which can impact sugar stocks. However, these issues tend to smooth out over the longer term, which enables these companies to capitalize on the growing demand for sugar.

Best Sugar Stocks for 2026 and How to Invest

A look at some of the companies tapping into our nearly insatiable sugar appetite.

By Matthew DiLallo – Updated Apr 10, 2026 at 4:37 PM EST | Fact-checked by Frank Bass

Key Points

High sugar consumption is driving rising revenues for companies that sell sugary products and beverages.
Top companies like Hershey and Coca-Cola grow via organic investments and acquisitions.
Investing in sugar stocks can produce some sweet dividend income.

Sugar stocks are publicly traded companies that generate a high percentage of their revenue from the sale of sugar or sugary drinks and foods. According to the U.S. Department of Agriculture, the average American consumes 34 teaspoons of sugar each day, which is equivalent to more than 500 calories. That adds up to more than 100 pounds of sugar each year.

While that's bad for our health, it's great for the bottom lines of companies producing sugar and sweetened food and beverages.

With that sweet profit potential in mind, here's a look at some of the companies benefiting from our sugar intake.

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A person sprinkling sugar on some baked goods. — Image source: Getty Images.

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Top sugar stocks to consider

No pure sugar-producing companies trade on major U.S. stock exchanges. Instead, a couple of companies produce sugar along with other agricultural products or as part of a diversified portfolio.

In addition, several notable consumer staple stocks and food companies manufacture sugary and confectionery products, as well as sweetened drinks. With that background, here are some of the top sugar stocks.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Tootsie Roll Industries (NYSE:TR)	$2.9 billion	0.92%	Food Products
Hershey (NYSE:HSY)	$37.0 billion	3.09%	Food Products
Coca-Cola (NYSE:KO)	$345.4 billion	2.59%	Beverages
Nestlé (OTC:NSRGY)	$253.1 billion	3.94%	Food Products
Mondelez International (NASDAQ:MDLZ)	$79.8 billion	3.17%	Food Products
Cosan (NYSE:CSAN)	$2.5 billion	0.00%	Specialty Retail
Adecoagro (NYSE:AGRO)	$1.4 billion	2.98%	Food Products

Data as of Jun 17, 2026. Showing 7 of 7 total entries.

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1. Tootsie Roll Industries

NYSE: TR

Tootsie Roll Industries

Today's Change

(-2.70%) $-1.03

Current Price

$37.18

Key Data Points

Market Cap

$2.9B

Day's Range

$36.72 - $38.09

52wk Range

$32.06 - $45.06

Volume

183K

Avg Vol

146K

Gross Margin

35.25%

Dividend Yield

0.92%

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Tootsie Roll Industries (TR -2.70%) has been making and selling confectionery candies since introducing the original Tootsie Roll in 1896. It has since grown into one of the country's largest candy companies.

The candy maker sells familiar brands such as Tootsie Roll, Tootsie Pop, Charms Blow Pop, DOTS, Andes Mints, Sugar Daddy, Charleston Chew, Dubble Bubble, Razzles, Caramel Apple Pop, Junior Mints, Cella's Chocolate-Covered Cherries, and Nik-L-Nip.

Tootsie Roll Industries sold $725 million of candy, chocolate, and bubble gum during 2025. Sales were up 1% year over year, driven by successful sales and marketing programs that helped offset challenges as consumers became more hesitant to pay higher prices caused by rising cocoa and chocolate costs. On a more positive note, those costs have started to fall, which should start benefiting the candy company in the coming quarters.

2. The Hershey Company

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NYSE: HSY

Hershey

Today's Change

(-3.95%) $-7.21

Current Price

$175.31

Key Data Points

Market Cap

$37B

Day's Range

$172.46 - $183.15

52wk Range

$160.07 - $239.48

Volume

3.8M

Avg Vol

Gross Margin

35.56%

Dividend Yield

3.09%

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Hershey (HSY -3.95%) has grown from a single factory to a snacking powerhouse over the past 125 years. The company has more than 90 brands worldwide that rang up sales of nearly $11.7 billion in 2025, a 4.4% increase. Its iconic brands include Hershey's, Reese's, Kit Kat (in the U.S.), Jolly Rancher, Ice Breakers, SkinnyPop, and Pirate's Booty. It's the No. 1 U.S. confectionery brand.

Hershey's has been a good stock to own over the years. It has delivered attractive total returns (10.7% annualized over the last seven years) by steadily expanding its portfolio of brands -- it bought LesserEvil in 2025 -- and increasing its dividend payments. The company expects to deliver 4% to 5% net sales growth in 2026 and 30% to 35% profit growth, driven by higher prices, the LesserEvil acquisition, and improving margins. That could make it a sweet stock to own this year.

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3. The Coca-Cola Company

NYSE: KO

Coca-Cola

Today's Change

(-0.52%) $-0.42

Current Price

$79.86

Key Data Points

Market Cap

$345B

Day's Range

$79.00 - $80.33

52wk Range

$65.35 - $84.04

Volume

666.5K

Avg Vol

15.2M

Gross Margin

61.82%

Dividend Yield

2.59%

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Coca-Cola (KO -0.52%) is a leading global beverage company that sells its sweet products in more than 200 countries. Coca-Cola owns several global brands, including:

Sparkling soft drinks like Coca-Cola, Sprite, and Fanta.
Water, sports, coffee, and tea brands such as Dasani, Smartwater, Vitamin Water, Powerade, and Gold Peak.
Juice, value-added dairy, and plant-based beverage brands like Minute Maid, Simply, and Fairlife.

While Coca-Cola is working to reduce sugar in its drinks by introducing innovative products, it still sells many sugary beverages.

The company's beverage portfolio generates significant cash, enabling it to pay a satisfying dividend. In early 2026, Coca-Cola delivered its 64th consecutive annual dividend increase. That kept it in the elite group of Dividend Kings, companies with 50 or more years of increasing their dividends. The company grew its revenue by 2% to $47.9 billion in 2025 and expects to deliver 4% to 5% organic revenue growth in 2026.

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4. Mondelez International

NASDAQ: MDLZ

Mondelez International

Today's Change

(-2.08%) $-1.29

Current Price

$60.86

Key Data Points

Market Cap

$80B

Day's Range

$60.02 - $62.20

52wk Range

$51.20 - $71.15

Volume

8.7M

Avg Vol

8.4M

Gross Margin

31.19%

Dividend Yield

3.17%

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Mondelez (MDLZ -2.08%) is one of the world's largest snack companies. Its products include biscuits (cookies, crackers, and salted snacks), chocolate, cakes and pastries, snack bars, and candy. Notable sugary brands include Sour Patch Kids, Cadbury, Chips Ahoy, Oreo, and many others.

The company has delivered excellent returns for shareholders. Mondelez has increased its dividend at an 11.4% compound annual rate over the past decade and has repurchased more than $15 billion of its shares since 2018 (reducing its outstanding shares by 18% during that period). The snack maker believes it can continue returning more cash to shareholders in the future even as it keeps expanding its global portfolio of popular snacking brands. Modelez grew its revenue by 5.8% to $38.5 billion in 2025 and expects to deliver flat to 2% organic revenue growth in 2026.

5. Nestle

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OTC: NSRGY

Nestlé

Today's Change

(-1.83%) $-1.83

Current Price

$98.25

Key Data Points

Market Cap

$253B

Day's Range

$98.02 - $100.00

52wk Range

$86.98 - $109.59

Volume

530.7K

Avg Vol

402.6K

Gross Margin

45.55%

Dividend Yield

3.94%

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Nestlé (NSRGY -1.83%) is a global food, beverage, and nutritional health solutions giant. The Switzerland-based company has more than 2,000 brands in its portfolio, ranging from iconic global ones to local favorites. The company's sugary confectionery brands include Kit Kat (outside the U.S.), Toll House, and Smarties, while other sweet brands include Dreyer's and Häagen-Dazs ice cream, Coffee-Mate, and Nesquik.

While Nestle has some strong offerings, it's not as pure a play on sugar intake as others. However, the company offers a diversified portfolio that adapts to consumer tastes, which is important as more people try to limit their sugar intake for health reasons. That adaptability has Nestle on track to deliver sustained organic sales growth. It delivered 3.5% organic growth in 2025 and expects to deliver 3% to 4% growth in 2026, with 4%+ growth anticipated in the medium term.

6. Cosan

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NYSE: CSAN

Cosan

Today's Change

(5.02%) $0.13

Current Price

$2.72

Key Data Points

Market Cap

$2.5B

Day's Range

$2.72 - $2.85

52wk Range

$2.52 - $6.00

Volume

3.5M

Avg Vol

2.4M

Gross Margin

33.62%

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Cosan (CSAN +5.02%) is a Brazilian holding company. It has a joint venture with the integrated energy company Shell (SHEL -2.27%), called Raízen S.A., which produces sugar, ethanol, and bioenergy. Cosan also operates one of Brazil's largest lubricants companies and Latin America's largest logistics operator, plus it invests in infrastructure, distribution, commercialization, and trading in the natural gas and energy sectors.

Through Raízen, Cosan offers a different spin on sugar. It's a leading manufacturer of sugarcane ethanol in Brazil and the largest individual sugar exporter globally. Cosan sells its sugar to food manufacturers that put it in chocolate, candies, chewing gum, cakes, biscuits, ice cream, and cereals. The pharmaceutical industry also uses its sugar for syrups, oral medications, and nutritional products, while beverage makers use it in soft drinks, juices, and alcoholic beverages. Both Cosan and Raizen have faced financial issues due to weaker harvests and lower volumes. As a result, Shell is pouring more capital into Raízen in 2026 to help bolster its finances.

7. Adecoagro

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NYSE: AGRO

Adecoagro

Today's Change

(-2.92%) $-0.29

Current Price

$9.64

Key Data Points

Market Cap

$1.4B

Day's Range

$9.55 - $9.97

52wk Range

$6.89 - $15.89

Volume

1.3M

Avg Vol

1.5M

Gross Margin

11.24%

Dividend Yield

2.98%

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Benefits and risks of investing in sugar stocks

Benefits

Companies that produce sugary drinks and foods tend to be consistently profitable.
Demand for sugar is rising, which should drive steady revenue growth for sugar stocks.
Many sugar-forward companies pay dividends, making them potentially sweet income stocks.

Risks

The volatility of sugar prices and other commodities used to make sugary products can affect returns.
The trend towards healthier foods that contain less sugar could limit growth.
Inflation or an economic downturn can affect demand for non-essential food items such as desserts, soda, and sweet snacks.
Company-specific issues, including mismanagement, excessive debt, and inadequate responses to changing market conditions, can affect sugar stock returns.

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Should you invest in sugar stocks?

We eat a lot of sugar. That benefits companies that make sugary snacks and drinks, as they cash in on steady, growing demand. As a result, many pay some sweet dividends (high-yielding and steadily rising). However, sugar stocks tend to be slower-growing companies compared to other inudstries and there's some volatility in sugar prices (impacting producers such as Cosan and Adecoagro). These features make sugar stocks best for those seeking steadier dividend income.

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FAQ

Sugar stocks FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Coca-Cola and Hershey. The Motley Fool has positions in and recommends Hershey. The Motley Fool recommends Nestlé. The Motley Fool has a disclosure policy.

Best Sugar Stocks for 2026 and How to Invest

A look at some of the companies tapping into our nearly insatiable sugar appetite.

Key Points

Top sugar stocks to consider

1. Tootsie Roll Industries

Key Data Points

2. The Hershey Company

Key Data Points

3. The Coca-Cola Company

Key Data Points

4. Mondelez International

Key Data Points

5. Nestle

Key Data Points

6. Cosan

Key Data Points

7. Adecoagro

Key Data Points

Benefits and risks of investing in sugar stocks

Should you invest in sugar stocks?

Related investing topics

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Best Growth Stocks to Buy in 2026

Best Tobacco Stocks for 2026 and How to Invest

Best Gym Stocks for 2026 and How to Invest

FAQ

Sugar stocks FAQ

Is sugar a good investment?

Is sugar a good investment?

Which sugar stock gives the highest dividend?

Which sugar stock gives the highest dividend?

What is the biggest sugar company?

What is the biggest sugar company?

What is the future of sugar shares?

What is the future of sugar shares?

Are sugar stocks cyclical?

Are sugar stocks cyclical?

How volatile are sugar stocks compared to other commodities?

How volatile are sugar stocks compared to other commodities?

How do global sugar prices affect sugar companies?

How do global sugar prices affect sugar companies?

Are sugar stocks good for short-term or long-term investing?

Are sugar stocks good for short-term or long-term investing?

About the Author

Read Next

Stocks Mentioned

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Premium Investing Services

Top sugar stocks to consider

2. The Hershey Company

Key Data Points

Key Data Points

Key Data Points

5. Nestle

Key Data Points

6. Cosan

Key Data Points

Key Data Points

Benefits and risks of investing in sugar stocks

Should you invest in sugar stocks?

Best Beverage Stocks to Buy in 2026 and How to Invest in Them

Best Growth Stocks to Buy in 2026

Best Tobacco Stocks for 2026 and How to Invest

Best Gym Stocks for 2026 and How to Invest

Sugar stocks FAQ

Is sugar a good investment?

Is sugar a good investment?

Which sugar stock gives the highest dividend?

Which sugar stock gives the highest dividend?

What is the biggest sugar company?

What is the biggest sugar company?

What is the future of sugar shares?

What is the future of sugar shares?

Are sugar stocks cyclical?

Are sugar stocks cyclical?

How volatile are sugar stocks compared to other commodities?

How volatile are sugar stocks compared to other commodities?

How do global sugar prices affect sugar companies?

How do global sugar prices affect sugar companies?

Are sugar stocks good for short-term or long-term investing?