The debate about a sugar tax is gaining momentum again in Austria. While proponents aim to reduce sugar consumption and, in the long term, lower obesity and diet-related diseases, the domestic food industry warns of additional costs for consumers and producers.

“Considering new taxes on food right now sends completely the wrong signal,” says Katharina Koßdorff , Managing Director of the Austrian Food Industry Association . From the association’s perspective, additional taxes would increase food prices, weaken purchasing power, and place an additional burden on Austrian production.

The crucial question, however, is not simply whether a tax reduces the sugar content of individual products. International experience shows that manufacturers do indeed respond to such levies. The more difficult question is how significant the actual health effect will ultimately be.

Great Britain is changing the recipes

Great Britain is frequently cited as an example. The " Soft Drinks Industry Levy " has been in effect there since 2018. This levy has triggered significant changes in the range of beverages available.

Between 2015 and 2024, the average sugar content of soft drinks subject to the tax fell by 47 percent, according to the British government. Currently, 89 percent of soft drinks sold fall below the threshold at which the tax is levied.

However, this doesn't automatically mean that drinks have become less sweet overall. British regulations tax sugar, but not sweeteners like aspartame , sucralose, or stevia. Producers can therefore reduce sugar and replace it, at least partially, with low-calorie or calorie-free sweeteners.

The tax has thus accelerated reformulations, but a fundamental move away from heavily sweetened products cannot be inferred from this.

The health benefits remain limited.

The health effects are also less clear than the significant reduction in sugar in the products would suggest.

Studies on the British levy showed a reduction in daily sugar intake of around three grams in children and about five grams in adults. This equates to roughly twelve and 21 kilocalories per day, respectively, and thus only about one percent of daily energy requirements.

While a decrease in obesity prevalence was observed among ten- to eleven-year-old girls, contrary to the expected trend, particularly in socially disadvantaged regions, a comparable effect was not found in boys or other age groups studied.

This does not provide general proof that a sugar tax can solve the problem of childhood obesity.

International experiences remain mixed

Similar results have been found in other countries. Taxes can reduce sales of the products in question, but this does not necessarily lead to a corresponding reduction in overweight and obesity.

The trade association for the food industry points to Mexico, among other examples. There, the sugar tax has, according to calculations, only led to a reduction in daily energy intake of around six kilocalories.

Even in Mexico, Chile, France and Great Britain, overweight and obesity rates have not generally decreased despite corresponding taxes.

The World Health Organization (WHO) generally recommends taxes on sugar-sweetened beverages. However, it considers them part of a broader package of public health measures. The aim is, on the one hand, to reduce consumption, and on the other hand, to encourage manufacturers to change their recipes.

Austria consumes less sugar

The Austrian food industry primarily argues against a possible tax based on the development of domestic sugar consumption.

According to the trade association, per capita consumption has fallen by around 30 percent since the mid-1990s. In the 2024/25 fiscal year, it stood at 26.8 kilograms per person. The EU average was 33.2 kilograms.

The Austrian beverage industry has also significantly changed its products. The average sugar content of its portfolio has been reduced by around a third within the last 20 years.

This development is relevant for food producers and therefore also for numerous suppliers to the baking and confectionery trade: sugar reduction is no longer solely a health policy requirement, but increasingly part of product development and consumer expectations.

Spar relies on voluntary reduction

Spar demonstrates how far voluntary measures can go. The Austrian food retailer launched its own sugar reduction initiative back in 2017 and has been gradually revising the recipes of its own brands ever since.

According to company figures, by the end of 2025 a total of around 5,300 tons of sugar had been saved across more than 380 Spar brand products.

What is remarkable is the product strategy. "When formulating our Spar brand products, we focus on genuine, unadulterated taste, without relying on sugar substitutes or artificial sweeteners," explains Markus Kaser, Deputy Chairman of the Board of Spar.

The issue remains relevant for consumers as well. In a Marketagent survey commissioned by Spar, 48 percent of Austrians stated at the beginning of 2026 that they wanted to reduce their sugar consumption.

Recipes become the key

The debate surrounding a sugar tax will therefore not be decided solely by tax rates. Experience from Great Britain clearly shows that financial incentives can change recipes and product ranges. Proving that this automatically translates into a correspondingly significant health benefit is considerably more difficult.

For Austria, another development is at play: Sugar consumption has already declined significantly, while manufacturers and retailers are simultaneously working on new recipes. For bakeries and confectioneries, therefore, the crucial factor is likely to be not so much the fundamental political debate, but rather how their customers' demand is changing.

Combining less sugar, good taste and traceable ingredient lists is therefore increasingly becoming a task of craftsmanship and product strategy.