A report shows sugar consumption in 2011 was 42kg per person, down from 57kg per person in 1951 when Australia's sweet tooth was at its sweetest.
The report - Sugar Consumption in Australia: A Statistical Update - also found there has been a sharp nine per cent decline since 2004 when every Australian, on average, was absorbing 46kg of sugar.
The report, compiled by Green Pool, has taken all aspects of sugar consumption into account.
"Our calculations... include household use, processed foods and beverages, takeaways, convenience foods and restaurant meals," Green Pool spokesman Tom McNeill said.
"Imports and exports of sugar and sugar-containing manufactured foods and beverages were also assessed."
The report is the first independent assessment of sugar consumption trends since the Australian Bureau of Statistics (ABS) stopped examining the field in 1999.
Mr McNeill said the report would fill a significant void and enable more informed national health policies to be drafted.
"Since (the ABS ceased publishing), no robust, independent assessment of apparent (sugar) consumption, at a national level, has been available for policy makers, health professionals, industry and others.
"We hope this report will provide the most up-to-date, reliable and trusted reference for domestic sugar consumption statistics moving forward."
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