Sugar Taxes May Affect Food And Beverage Industry Sales
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Sugar Taxes May Affect Food And Beverage Industry Sales, Says Infiniti Research MAY 4, 2017 SOURCE: INFINITI RESEARCH
May 02, 2017 03:29 PM Eastern Daylight Time LONDON–(BUSINESS WIRE)–As concerns about sugar consumption and lifestyle-related diseases rise, governments of various regions are implementing taxes on high-sugar foods and beverages such as soda. These taxes are intended to reduce the rates of overweight and obesity and to encourage healthy diets. Infiniti Research expects this to have an impact on the operations of food and beverage vendors and a positive influence on the growth of markets for sugar substitute products, such as sugar alcohols.
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The World Health Organization recommends a tax of at least 20% on sugary drinks, and claim that the adoption of sugar taxes worldwide would help to combat obesity and prevent chronic diseases such as type 2 diabetes. The Heart and Stroke Foundation has suggested that a Canada-wide tax of at least 20% on all sugary drinks (including soda, chocolate milk and other flavoured milks, and fruit juice) would avoid approximately 200,000 cases of diabetes, 60,000 cases of heart disease, and 20,000 cases of cancer over the next 25 years. They project that it would save 13,000 lives and raise CAD 1.7 billion per year in new revenue for the federal government.
Mexico, France, and Norway have successfully implemented nation-wide sugar taxes on sugary drinks. Mexico’s tax has proven to be particularly successful, with sugary drink purchases declining by more than 7% over a two-year period. Canada may be the next to follow this trend. The Northwest Territories recently announced their intention to introduce a sugary drink tax in 2018/19, making it the first province or territory in Canada to introduce such a tax, and potentially setting the stage for the rest of the country to follow.
How Can Infiniti Research Help?
It can be difficult to predict how new regulations and taxes will be received by consumers in a particular area, especially since sugar consumption differs between different provinces and states in Canada and the US. To better anticipate the effect that sugar taxes will have on the sales of soda and other sugary drinks, the use of market intelligence can be very beneficial. Market research and analysis can provide insights on factors such as the dietary habits of consumers, what their purchasing preferences are, and whether or not they are in favour or against sugar and other food and beverage-related taxes. This can help food and beverage vendors to predict sales, adjust marketing and sales strategies, and adhere to new rules and regulations.
Infiniti Research was recently approached by a leading global food and beverage vendor to help them better understand consumer behaviour in Europe’s bakery segment. The insights regarding customer trends, needs, preferences, and behaviours provided by Infiniti’s food and beverage analysts allowed the client to generate new ideas for product innovation, marketing, and packaging, and to re-evaluate their overall strategy to increase sales and customer retention.
About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.
With 13 years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.