

Yes regulation help protect people from getting ill having accidents and even dying due to lots of stupid preventable shit too.
And of course that also help the economy despite it’s only a secondary effect.
Things like fire regulation, car safety and of course health regulation in food.
These are all things that protect us every day, but most people are completely oblivious about all the ways regulation help. And only focus on the potential bit of extra paperwork, and a bit of extra cost, that they are ignorant about is recouped in benefits to all that outweigh the cost multiple times.
What we need is not less regulation, but better regulation!
I’m not sure what real world thing you made this analogy for? But this is a straw man, because nowhere are you told you can’t add sugar to your food.
You may be told you shouldn’t, because it’s unhealthy. But you can still add sugar even to commercially sold food in amounts that by European standards make it actually illegal to call it food. Making it either cake or candy.
American Fruity loops is an example that is illegal to call food in EU because of too much sugar. Apart from a number of additives that are illegal too in EU. You could still sell it in EU, but not as a breakfast cereal.
You should not be unhappy if sugar is regulated in food you purchase. And you definitely can put more on it at home if you really want candy instead of food. Sweetener is a cheap way for the industry to make something taste batter, despite having extremely low quality.