The World Health Organization has urged governments to significantly increase taxes on sugary drinks and alcoholic beverages after new global data showed that both products are becoming cheaper in many countries, driving rising rates of obesity, diabetes, heart disease, cancer, violence, and injury, particularly among children and young adults.
Two new WHO reports released on January 13 warn that low and poorly designed tax systems are allowing high-sugar and alcoholic products to remain widely affordable, even as health systems face growing pressure from preventable noncommunicable diseases and trauma-related care. The agency says that weak taxation is shifting the financial burden from corporations onto the public, forcing societies to absorb the long-term medical and economic costs.
The global market for sugary drinks and alcohol generates billions of dollars annually, yet governments collect only a small fraction of this value through health-focused taxes. As a result, consumption remains high while countries struggle to fund healthcare services needed to treat diet- and alcohol-related illnesses.
WHO data show that 116 countries currently tax sugary drinks, most commonly carbonated sodas. However, many high-sugar products such as fruit juices, flavored milk, and ready-to-drink teas and coffees remain outside these tax frameworks. Nearly all countries tax energy drinks, but the structure and impact of those taxes have not changed since 2023.
Alcohol is taxed in at least 167 countries, while 12 nations prohibit it entirely. Despite this, alcoholic beverages have become more affordable in most parts of the world since 2022, as tax levels have failed to keep pace with inflation and income growth. Wine continues to be untaxed in at least 25 countries, mainly in Europe, even though alcohol consumption is strongly linked to chronic disease, injury, and violence.
Globally, tax levels remain low. Median excise taxes account for only about 14 percent of the price of beer and 22.5 percent of spirits. Sugary drink taxes are even weaker, representing roughly 2 percent of the price of a typical soda and often covering only a limited range of beverages. In many countries, taxes are not adjusted for inflation, allowing these products to become progressively cheaper over time.
These trends persist despite widespread public support for stronger taxation. A 2022 Gallup poll found that most people across multiple countries favor higher taxes on alcohol and sugary beverages.
To address the growing health burden, WHO has launched the “3 by 35” initiative, which calls on countries to raise the real prices of tobacco, alcohol, and sugary drinks by 2035. The goal is to reduce harmful consumption, curb preventable disease, and generate sustainable revenue to support public health systems around the world.
