Sugary drinks and alcoholic beverages are becoming more affordable in many countries due to low or outdated tax rates — a trend the World Health Organization says is contributing to higher rates of obesity, diabetes, cardiovascular disease, cancer and injury, particularly among children and young adults.

In two new global reports, WHO urges governments to strengthen health-related taxes on sugary drinks and alcohol. The agency argues that weak tax systems allow products linked to preventable diseases to stay cheap, while health systems face growing financial pressure from avoidable illness and injury.

WHO Director-General Dr Tedros Adhanom Ghebreyesus said health taxes remain one of the most effective tools to reduce harmful consumption and generate funding for essential health services, alongside tobacco taxation.

Despite the size of the global market for sugary drinks and alcohol, governments capture only a limited share of industry profits through health taxes, leaving societies to absorb long-term healthcare and economic costs.

According to the reports:

• 116 countries tax sugary drinks, but many high-sugar products — including fruit juices, sweetened milk drinks and ready-to-drink coffees or teas — are often excluded.
• While 97% of countries tax energy drinks, coverage has not expanded since 2023.
• At least 167 countries tax alcohol, yet prices have largely kept pace with inflation or income growth, making alcohol more affordable over time.
• Wine remains untaxed in at least 25 countries, mainly in Europe.

Globally, excise taxes account for a median of 14% of beer prices and 22.5% for spirits. For sugary drinks, taxes typically represent around 2% of the retail price, often applying only to a narrow segment of products.

WHO also notes that few countries adjust health taxes for inflation, allowing harmful products to become cheaper in real terms. This persists despite public support: a 2022 Gallup poll found that a majority of respondents backed higher taxes on alcohol and sugary beverages.

The findings underpin WHO’s “3 by 35” initiative, which calls on countries to increase the real prices of tobacco, alcohol and sugary drinks by 2035, with the aim of reducing consumption and easing the long-term burden on health systems.

20.01.2026.