Obesity rates continue to rise globally, with governments worldwide taking various measures to combat it, but is taxing unhealthy foods the solution? Here are the results of a study conducted on this topic, as cited by FoodNavigator.

Rising Obesity

The number of obesity cases in Europe and the rest of the world has significantly increased over the past forty years, with the European Union (EU) now declaring it a "serious public health issue." According to figures from the World Health Organization (WHO), 1 in 8 people globally now live with obesity.

Obesity is classified as a body mass index (BMI) over 30. It has been linked to a range of serious health issues, including cardiovascular diseases, type 2 diabetes, musculoskeletal disorders such as osteoarthritis, and endometrial, breast, and colon cancers.

Therefore, governments are working to address this issue, with different methods and varying degrees of success. However, one of the most commonly implemented methods to try to combat obesity is taxing so-called unhealthy foods. But does it work?

What Are Unhealthy Foods?

While there's no official definition of what constitutes unhealthy foods, they are widely recognized as foods high in fats, salt, and sugar (HFSS).

The World Heart Federation supports this, stating that an unhealthy diet comprises foods high in salt, sugar, and saturated and trans fats.

Does Taxing Unhealthy Foods Help Reduce Obesity?

A recent peer-reviewed study conducted by the Imperial College Business School analyzed the taxation of foods high in fats, sugar, and salt (HFSS) to understand the effectiveness of this technique in addressing the obesity issue.

The research was driven by the impact obesity has on overall health. "Recognizing the impact food choices have on people's health, we were motivated to identify and evaluate policies that could help countries tackle the wave of obesity," explains Dr. Elisa Pineda, a research colleague at Imperial College, at The George Institute for Global Health UK.

"Our research is a crucial step in helping countries create health policies that can significantly reduce the burden of disease and improve people's health quality. Our findings underscore the potential of targeted fiscal measures, such as food taxes and subsidies, to modify consumer behaviors in a way that could lead to healthier populations on a global scale."

The study, commissioned by the Diet Improvement Team at the Office for Health Improvement and Disparities, Department of Health and Social Care, found that a tax on foods rich in fats, sugar, and salt (HFSS) directly affects the sales of these products.

The analysis examined the findings of 20 separate country studies, assessing the global potential of taxing foods high in fats, sugar, and salt (HFSS). The studies included outcomes from Mexico, the United States, Canada, Hungary, Denmark, the Netherlands, Singapore, and New Zealand.

18% Reduction in Sales

In Mexico, an 8% tax on non-essential, energy-rich foods, including sweets, chocolate, sugary cereals, chips, and savory snacks, saw an 18% reduction in supermarket sales and up to a 40% reduction in other retailers. Additionally, low-income groups, which were higher consumers of previously taxed foods, experienced the most significant decrease in consumption following the tax implementation.

However, results from North America and New Zealand suggest that a low tax or a tax without subsidies for healthier foods might only be effective in increasing government revenues rather than impacting obesity levels.

To have an impact on consumption levels and obesity, the authors found that in these regions, high tax rates and subsidies for healthier foods, such as fruits and vegetables, were crucial in driving change.

"Our research is a crucial step in helping countries create health policies that can significantly reduce the burden of disease and improve people's health quality," says Dr. Pineda.

Should European Countries Implement HFSS Food Taxation?

Several European countries, including Denmark, Finland, and Hungary, have already implemented taxes on foods deemed unhealthy. Furthermore, WHO figures show that governments implementing "sugar-sweetened beverage (SSB) taxes are gaining momentum."

"Our findings underscore the effectiveness of HFSS food taxes as a viable strategy to reduce consumption of unhealthy foods and address the public health challenges of obesity," says Dr. Pineda.

It is also believed that health inequalities, exacerbated by low incomes, could be reduced by adding a tax on foods high in fats, sugar, and salt if healthy foods are additionally subsidized.

"Evidence that individuals from lower-income groups benefit most from these taxes suggests they may also play a role in reducing health inequalities," adds Dr. Pineda.

"Positive outcomes associated with combining HFSS food taxes with subsidies for healthier options make this a compelling policy option for governments looking to encourage healthy eating and reduce the impact of obesity.

However, to be most effective and to prevent consumers from simply replacing with other unhealthy options, it's important for these taxes to be associated with increased availability of healthy and affordable alternatives."

Taxing HFSS foods could also help reduce obesity through reformulation. In the UK, new regulations on product placement in stores and supermarkets have already motivated some brands to reformulate their products to avoid being removed from significant retail locations. Taxation would further encourage brands to reformulate to avoid taxation, meaning all consumers would purchase healthier products. (Photo: Freepik)

(Source: Review: Effectiveness and policy implications of health taxes on foods high in fat, salt, and sugar DOI: https://www.sciencedirect.com/science/article/pii/S0306919224000101 Authors: Elisa Pineda, Mathilde Gressier, Danying Li, Todd Brown, Sarah Mounsey, Jack Olney, Franco Sassi)