Dive Brief:
- Mexico's junk food tax, implemented in 2014, has reduced purchases of these items by an average of 5.1%, or about 25 grams (0.88 ounces) per month per person, according to a report published in the online journal PLOS-Medicine.
- The tax had a bigger impact on lower-income households, with a 10.2% reduction in junk food purchases. The amount dropped 5.8% for medium-income households and stayed the same in higher-income households.
- The study's results are not clear on how the tax impacted overall behavior. It did not indicate if people reduced their overall calorie intake, purchased healthier foods, or spent more on cheaper street food.
Dive Insight:
When the Mexican government approved the sugary drink and junk food tax in October 2013, Mexico had high obesity rates. About 70% of residents were overweight, and close to one-third were considered obese, according to the World Health Organization. Instituted in January 2014, the tax was one peso per liter, or about 7 cents, for soft drinks (about 10%) and 8% on high-calorie foods, such as potato chips and cookies.
Preliminary data from a study on the impact of Mexico's sugary drink tax released in October 2015 found sugary drink purchases dropped 6%, compared with past trends. By December 2014, they'd fallen by 12%. The reduction was more significant in the lowest economic group, which made 17% fewer purchases by the end of the year. The researchers in the drinks study also claimed that Mexican consumers drank more water.
These studies could be posited as an argument for or against the soda taxes cropping up on ballots across the United States. Supporters may argue these studies prove taxes reduce consumption of unhealthy foods and beverages while also providing economic benefits to local governments.
Soda tax opponents, however, may argue that the taxes haven't moved the needle enough and disproportionately impact lower-income households instead of discouraging consumption in general. They also are concerned that consumers may turn to other unhealthy foods not tracked by the study, like street food made of the same brand-name junk food and then doused in salt, spices and sauces, according to the Associated Press.