Sugary drinks and alcoholic beverages are becoming increasingly affordable worldwide, driving a sharp rise in noncommunicable diseases (NCDs) and injuries, the World Health Organization (WHO) has warned. In two new global reports, the agency is urging governments to strengthen health taxes on these products to reduce harmful consumption, protect public health, and generate sustainable revenue for overstretched health systems.
According to WHO, consistently low tax rates have allowed the real prices of sugary drinks and alcohol to fall or stagnate, even as rates of obesity, diabetes, heart disease, cancers, and alcohol-related injuries continue to climb. Children and young adults are among the most affected, as cheaper products encourage early and excessive consumption.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said WHO Director-General Dr Tedros Adhanom Ghebreyesus. “By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
The reports highlight a stark imbalance between industry profits and public costs. While the global market for sugary drinks and alcohol generates billions of dollars annually, governments collect only a small share of this value through health-motivated taxes. As a result, societies shoulder the long-term economic and health consequences of preventable diseases and injuries.
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WHO found that 116 countries currently tax sugary drinks, primarily sodas. However, many other high-sugar products—such as 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas—remain untaxed. Although 97% of countries tax energy drinks, progress has stalled since 2023.
Alcohol taxation is similarly weak. At least 167 countries impose some form of tax on alcoholic beverages, while 12 ban alcohol entirely. Yet alcohol has become more affordable or remained unchanged in price in most countries since 2022, largely because taxes have not kept pace with inflation and income growth. Wine remains untaxed in at least 25 countries, mainly in Europe, despite well-documented health risks.
“More affordable alcohol drives violence, injuries and disease,” said Dr Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention.
Globally, median excise taxes account for just 14% of the price of beer and 22.5% of spirits, while sugary drink taxes typically represent only about 2% of the retail price. Few countries adjust these taxes for inflation, allowing harmful products to become steadily cheaper over time.
WHO is calling on governments to act through its “3 by 35” initiative, which aims to increase the real prices of tobacco, alcohol, and sugary drinks by 2035. The goal is to make these products less affordable, reduce disease and injury, and ensure that public health—not corporate profit—comes first.
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