In the European Union rules of functioning of the sugar market are covered by EU legislation, which forms common market organisation in the sugar sector. It assumes strong protectionism aiming at protection of UE farmers and companies, mainly against the competition from the world sugar producers of cane sugar. In 2006-2010, the EU conducted a reform of the sugar market aiming at elimination of production surpluses and improving competitiveness to prepare sugar sector to its liberalization. The article presents comparison of the current state of sugar industry in Poland and Germany after changes resulting from the reform.