The Implications of Introducing a Sugar Tax
"The Implications of Introducing a Sugar Tax" explores the likely effects of sugar taxes on consumer prices and behavior. It outlines consumer responses to price hikes by attempting to evaluate to what extent sugar taxes could halt obesity by discouraging sugar consumption in the UK, which will be the next country to adopt such a policy.
The introduction of a sugar tax would hit lower-income groups harder, but this would not guarantee a reduction in sugar consumption as this group is likely to trade down to lower-price goods. On the other hand, the tax would raise awareness among consumers bringing the high sugar content of soft drinks into the spotlight. This could stimulate new innovations in product reformulation, positioning and packaging sizes.
- There is no clear evidence supporting sugar tax as a mechanism to influence consumer diets.
- Despite obesity/overweight and sugar-related health issues being two of the most concerning health issues for British consumers, consumption of sugar is high and climbing.
- Price rises will not necessarily stall the taxed category’s sales as the demand is inelastic and consumers may just shift to cheaper brands.
- The tax would play a key role in promoting a healthy diet, bringing the high sugar content of soft drinks into the spotlight and stimulating demand for low-sugar and sugar-free soft drinks.
Reasons to buy
- Understand consumer responses to price hikes and to what extent purchasing patterns will be altered with the introduction of a sugar tax.
- Gain a detailed understanding of the unintended outcomes that price increases will generate.
- See the actions that major brands are taking to get ahead of the greater interest in the low-sugar, sugar-free, and alternative sweetener sectors.
Table of Contents
1. The rationale behind the sugar tax
2. Implications to consumer prices
3. A cross-country comparison
4. Implications of consumer perceptions
5. Spot light on: Soft Drinks
6. UK: Sugar Tax debate
7. Perceptions of the sugar tax by stakeholder
8. What manufactures need to know about UK consumers
9. Implications to consumer behavior
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.