News

Sugar tax in South Africa results in ‘positive changes’

23 Apr 2021

A study published in The Lancet found that following the 2018 implementation of a 10% tax on sugar-sweetened beverages in South Africa, the overall consumption of sugar from these beverages fell 35% from 16.25 grams per person daily to 10.63 grams per person daily.

Beverage purchases as a whole fell 15% from 519 milliliters per day to 443.39 milliliters following the introduction of the levy.

Sugar tax in South Africa results in ‘positive changes’

The study noted that the majority of the reduction in consumption stemmed from households in lower socioeconomic statuses, pointing to price sensitivity as the catalyst for the large drop in purchases of sugary beverages. Prior to the implementation of this sugary beverage tax, the study noted that these same households purchased larger amounts of the no-taxable beverages than wealthier households.

“Our findings also align with economic theory and empirical evidence, including earlier findings in Mexico, showing larger relative reductions in purchases of taxable beverages among lower Living Standards Measure (LSM) households compared with reductions observed in higher LSM households.” One year after introducing a 1-peso-per-litre tax on beverages containing added sugar, Mexico saw a 6% reduction in purchased volume relative to pre-tax trends over the first year of the tax, and 7·6% reduction over the first two years of the tax.

South Africa has the greatest number of residents suffering from diet-related non-communicable diseases in Sub-Saharan Africa. With so many of its population overweight and reacting negatively to heightened sugar intake, South Africa became the first country in its region to enact such a levy on sugary beverages. The promising results identified in the study indicate that “the reduction in sugar from taxable beverage purchases suggest a potential role for sugar-based taxes more broadly.”

Taxes on sugary beverages are not unique to South Africa. Other countries like the UK and parts of the United States have implemented variations of sugar taxes or sweetened beverages and results have shown that it leads to a decline in the intake of sugary drinks.

Nevertheless, the study cautioned that trends in higher income countries are not reflective of potential results in other African countries. In South Africa though, the effects on an individual’s health engendered by this tax can be seen clearly. Following the implementation of this levy calorie consumption reduced 27%.

The tax “has coincided with a large reduction in purchases in terms of volumes and sugar quantities from taxable beverages.”

Related news

UK High Court allows Oatly to use 'milk' on packaging

UK High Court allows Oatly to use 'milk' on packaging

17 Jan 2024

Oatly has scored a landmark victory in the use of the word milk after the UK High Court ruled against the country’s dairy industry and permitted the term to be used on packaging.

Read more 
Chobani expands drink presence with La Colombe acquisition

Chobani expands drink presence with La Colombe acquisition

16 Jan 2024

Greek yoghurt giant Chobani has purchased US coffee brand La Colombe Coffee Roasters for $900 million, furthering its expansion into beverage categories like coffee, oat milk, creamer and ready-to-drink offerings.

Read more 
PepsiCo to reshape convenient foods portfolio with less sodium and more plant proteins

PepsiCo to reshape convenient foods portfolio with less sodium and more plant proteins

10 Jan 2024

PepsiCo has revealed details of two nutrition goals that look to reduce sodium and boost consumption of legumes, whole grains, and plant-based proteins as part of the multinational’s expanded convenient foods portfolio.

Read more 
Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

3 Jan 2024

The Food Ingredients category at Fi Europe’s New Product Zone featured 19 distinct and innovative products. From fermented delights to sustainable proteins, these ingredients are ready to make their mark in the market.

Read more 
Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

22 Dec 2023

At Fi Europe 2023's New Product Zone, eight health ingredients, each offering an enhanced nutritional profile of various products, were on display. These ingredients address the evolving needs of the food and beverage industry and cater to consumers se...

Read more 
MyAir plans to expand personalised adaptogen products to UK

MyAir plans to expand personalised adaptogen products to UK

15 Dec 2023

After launches in Japan and the US, B2B personalised nutrition company MyAir is eyeing the UK market with its white-label functional food and drink products. “Taste is a must – but it's not enough,” says its CEO. “Food has become functional and persona...

Read more 
Augmented technology is the gateway to new food experiences

Augmented technology is the gateway to new food experiences

13 Dec 2023

Harnessing augmented reality as a digital tool could offer consumers increasingly personalised food and beverage experiences, opening up new ways to see and taste products, according to a report by Canvas8 and Givaudan.

Read more 
Colombia introduces tax on ultra-processed foods

Colombia introduces tax on ultra-processed foods

7 Dec 2023

In a bid to curb rates of obesity and other non-communicable disease, the Colombian government has introduced a tax on various ultra-processed food (UPF) and drink products.

Read more 
Snack trends, ingredient claims, and plant-based perceptions: Highlights from Fi Europe 2023, part 1

Snack trends, ingredient claims, and plant-based perceptions: Highlights from Fi Europe 2023, part 1

7 Dec 2023

Value-led snacking, sustainability storytelling, and the importance of having a ‘star ingredient’: we asked consumer analysts and market experts at Fi Europe about the trends and innovations that are shaping the food industry.

Read more 
Consumers want more plant-based meat without GM ingredients

Consumers want more plant-based meat without GM ingredients

28 Nov 2023

Plant-based meat has been a hot and popular category for several years, but not all North American shoppers are embracing vegetarian alternatives that contain genetically modified (GM) ingredients, according to the Non-GMO Project.

Read more