Sin Tax in Food and Beverages - Strategies, Outcomes and Learnings

  • ID: 4030360
  • Report
  • 46 pages
  • Euromonitor International
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As prevalence of obesity and diet-related disease is rising, public awareness of unhealthy food and drinks follows suit. Public health bodies are desperate to find solutions, and one of the possible remedies are sin taxes, typically associated with alcohol or tobacco. In 2016, the WHO has recommended a minimum 20% excise tax on all sugar sweetened beverages. Although a global perspective on nutrition and health is necessary, sugar in soft drinks is currently the most heavily targeted of all.

The Sin Tax in Food and Beverages - Strategies, Outcomes and Learnings global briefing offers an insight into to the size and shape of the Nutrition market and highlights buzz topics, emerging geographies, categories and trends as well as pressing industry issues and white spaces. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change and criteria for success.

Product coverage: Alcoholic Drinks, Fresh Food, Packaged Food, Soft Drinks.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
  • Get a detailed picture of the Nutrition market;
  • Pinpoint growth sectors and identify factors driving change;
  • Understand the competitive environment, the market’s major players and leading brands;
  • Use five-year forecasts to assess how the market is predicted to develop.
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Sin Tax in Food and Beverages - Strategies, Outcomes and Learnings

December 2016
Introduction
Justifying Sin Taxes
The Current State of Play
Learnings and the Future of Sin Taxes
Recommendations
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As prevalence of obesity and diet-related disease is rising, public awareness of unhealthy food and drinks follows suit. Public health bodies are desperate to find solutions, and one of the possible remedies are sin taxes, typically associated with alcohol or tobacco. In 2016, the WHO has recommended a minimum 20% excise tax on all sugar sweetened beverages. Although a global perspective on nutrition and health is necessary, sugar in soft drinks is currently the most heavily targeted of all.

2017 and 2018 will see further implementation of food and drink sin taxes

Out of 19 countries that currently implement sin taxes on food or drinks, 13 had only introduced them in the past decade; however an increasing number of countries are committed to do the same in the next 1-2 years. Along with the recent WHO recommendation on sugar tax, all planned food/drink sin taxes will target sugary soft drinks with the aim of reducing sugar consumption by up to 20%.

Soft drinks taxes are an effective revenue generator


Among EU countries, soft drinks tax revenue ranged from €89 million to €312 million a year on average. Taxation of soft drinks sweetened with sugar and, as well as, those with high intensity sweeteners is weaker at reducing consumption, but generates higher revenue per capita.

Sin taxes are not effective at reducing consumption of taxed items in the long term


Further insight into sin taxes in eight countries showed that in the majority of cases the tax only induced a temporary dip in sales of the taxed items. Preliminary findings show that the higher the tax, the longer its effect on sales.

100% juice consistently omitted from tax legislation


Despite growing recommendations from public health bodies to include 100% fruit juice in soft drinks taxation, only one country is considering this in its future legislation. According to Passport Nutrition data, if 100% juice was taxed in the same way as sugary soft drinks in the UK, this would generate some £267 million a year in tax revenue.

29 countries that currently do not have a sugar tax in place significantly exceed their sugar intake


One in five of the researched countries by Passport Nutrition consume more than 40% of daily calories from fat, and an astonishing 63% of researched countries consume more that 20% of their daily calories from total sugar. These could be the best potential targets for the next sugar and fat taxes.
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