Thailand's Sugar Tax Spurs Sweeter Beverage Reformulations

[snoop1130]

Picture courtesy of Grocery Gazette

 

Thailand's beverage industry is reeling from the latest sugar tax phase, prompting producers to either reduce sugar content or face substantial financial penalties. The Finance Ministry's new tax schedule, implemented by the Excise Department from April 1, marks the fourth and final phase of a long-term health initiative that commenced in 2017.

 

The objective is clear: to deter sugary drink consumption and combat escalating health issues, such as obesity, diabetes, and high blood pressure. According to the new tax structure:

 

• Beverages with 10-14g of sugar per litre are taxed at 5 baht, up from 3 baht.
• Drinks with 6-8g of sugar see a tax increase from 0.3 baht to 1 baht.
• Those containing 8-10g of sugar rise from 1 baht to 3 baht.
• Beverages with 6g or less remain tax-free.

 

Interestingly, drinks exceeding 14g per litre keep the maximum tax rate of 5 baht per litre, yet such sugar-heavy options have practically vanished from the market.

 

 

 

Despite the tax hikes, officials at the Excise Department assure consumers that prices are unlikely to inflate significantly. Instead, manufacturers have been proactively reformulating their products to incorporate artificial sweeteners or less harmful natural alternatives.

 

The shift in product composition is evident in the numbers:

 

• Low-sugar drinks (6g or less) have surged from 90 offerings in 2018 to 4,736 in 2023.
• Beverages in the 6-8g range have expanded from 758 to 2,900.
• Drinks with 14g or more have been eradicated, declining from 819 to zero.
• Mid-sweet beverages (10-14g range) have significantly reduced from 2,993 to a mere 524.

 

This sugar tax marks a significant transition for Thailand's beverage industry, promoting a health-conscious shift in consumer offerings. As the nation continues to address its public health agenda, manufacturers are left to adapt or absorb the tax implications of sugar-laden products, reported The Thaiger.

 

-- 2025-04-10

 

 

[smedly]

this creates another issue - artificial sweeteners which are possibly worse than sugar, reducing the sugar content would be my preference 

[redwood1]

59 minutes ago, smedly said:

this creates another issue - artificial sweeteners which are possibly worse than sugar, reducing the sugar content would be my preference 

 

Exactly.... Artificial sweeteners like Aspartame are wickedly bad for your health, and vastly worse than sugar ever will be....

 

Now drink markers will be very tempted to sneak Aspartame into their formulas without announcing the change...

 

I would be quite happy to pay more for a real sugar drink....

[treetops]

2 hours ago, snoop1130 said:

Picture courtesy of Grocery Gazette

 

Of a notice in Sainsbury's in the UK when the government there made a similar move on 6th April 2018.

[BangkokReady]

3 hours ago, redwood1 said:

I would be quite happy to pay more for a real sugar drink....

 

Coke in Thailand is already weak enough.  You need to take a trip to Laos just to get a sip of the good stuff!

[lordgrinz]

I should be Ok, I wash down my Banana Split Sundaes with Coke Zero.

[dinsdale]

15 hours ago, snoop1130 said:

The objective is clear: to deter sugary drink consumption and combat escalating health issues, such as obesity, diabetes, and high blood pressure. According to the new tax structure:

Sugar is just one factor in a list of many. If the others such as deep frying and junk food aren't addressed this sugar tax will make little to no difference.

[Classic Ray]

And yet many Thai restaurants rarely offer sugar-free drinks and 3 in 1 coffee remains ubiquitous.

 

Of course hiso sugar producers don’t want to see consumption reduced as it hits profits. The tax just diverts some of the profit to the Government. 

[FlorC]

Yes , make them sugarfree. We can add sugar ouselves.

Packages of 1 kg sugar are still cheap.

[1duckyboy]

Coke Zero and SangSom.

[hotchilli]

15 hours ago, smedly said:

this creates another issue - artificial sweeteners which are possibly worse than sugar, reducing the sugar content would be my preference 

My thoughts too... alternatives are just as bad if not worse.

[Freddy42OZ]

I stopped drinking everything except water.  Soft drinks first about 12 years ago, alcohol 5.5 years ago.  Milk probably 4 years now. 

There's no reason to drink anything else and water only costs me around 3 baht per day.

[kingstonkid]

1 hour ago, dinsdale said:

Sugar is just one factor in a list of many. If the others such as deep frying and junk food aren't addressed this sugar tax will make little to no difference.

 

But it is a start you can not expect a country to change everything about diet in one shot.

 

Let the people get used to this.  Will it make a difference I don't think so but at least they are trying. 

[Stevemercer]

Yeah, Coke in Thailand is now of the 'lower sugar' type although you can still get the old stuff in 6/12 packs. The new stuff tastes terrible. I'm sure people would still buy the classic Coke even if it costs more than other similar beverages.

[MarkBR]

Drink good tea

[Burma Bill]

20 hours ago, snoop1130 said:

beverage industry is reeling from the latest sugar tax phase, prompting producers to either reduce sugar content or face substantial financial penalties.

 

Being an insulin type 2 diabetic, this is welcome news but it is a matter of personal choice. 

 

For reference (Google) - 

 

Here's a more detailed look at the pros and cons of each:

 

Sugar:

• Pros:

  Provides energy, can be found in natural foods (fruits, vegetables, milk, etc.), and is a natural part of the human diet. 

   
• Cons:

  Excessive sugar intake can lead to weight gain, increase the risk of type 2 diabetes and heart disease, and contribute to other health issues. 

Artificial Sweeteners:

• Pros:

  Offer sweetness without the calories, may be helpful for weight management in the short term, and can be an alternative for individuals with diabetes. 

   
• Cons:

  Some research links artificial sweeteners to potential health concerns like cardiovascular disease, metabolic problems, and gut microbiome disruptions. One study found that erythritol, a common sugar alcohol, increased platelet stickiness, potentially increasing the risk of heart attack and stroke. 

   

  Here in Siem Reap, our supermarkets offer a vast range of sugar free non-alcoholic drinks, much more so than Thai supermarkets.  My drinks chill cabinet is full of them - not one sugar drink!

   

  I have been consuming them for just over 30 years and at age 81 I have no ill effects from them, having regular tests at my doctor's clinic.

   

  No further comment from me.

[Watawattana]

I know it's not funny or correct of course (ahem), but I think I'll stick to beer if it's all the same to you.

[blaze master]

Many bubble teas have over 50 or 60g of sugar in them. 

[Luuk Chaai]

they should do the same for street vendors cooks adding sugar

[carlyai]

31 minutes ago, Luuk Chaai said:

they should do the same for street vendors cooks adding sugar

Probably not sugar but MSG.

[TallGuyJohninBKK]

Couple things:

 

1. Unfortunately, the OP news report here doesn't say exactly what classes of beverages these new sugar rules and taxes will apply to. Presumably, though the article doesn't say it, they're talking about bottled and canned soft drinks and other similar beverages sold on store shelves.

 

However, I mention it because, if you really want to find A LOT of sugar content, try looking at the typical Starbucks or Amazon Cafe or similar flavored drinks, which are loaded up with the stuff, unless you specifically request a formulation without sugar or with very little sweetening. As far as I can tell, just guessing, there's no sign from the OP report that the referenced taxes are going to apply to THOSE kinds of prepared beverages here... which seems unfair in terms of providing equal treatment.

 

2. I've never really consumed sugary soft drinks. And even in recent years, about the closest I'd come would be adding a small dash of Oishi Genmai flavor green tea drink (their orange colored bottles) to my otherwise pure flat or pure carbonated soda water, just for a touch of flavoring. I know from looking at the label in the past, the Genmai flavor green tea had some sugar, but not much for me, because I used it very sparingly.

 

But today, after reading the OP report here, I figured I'd recheck the Oishi Genmai bottle label I have at home. And to my surprise and dismay, somewhere along the way, unawares to me, they've changed the formulation to reduce the sugar content to 5g per 200 ml label serving, but at the same time now have added SUCRALOSE as an ingredient, which I certainly don't want in my drink. And the front labeling/packaging of the drink gives no clue that they've added Sucralose to the formulation somewhere along the way.

 

Bad corporate behavior there, lacking disclosure, and they've just lost a customer for their product.  😞

 

So lesson here: if you consume any Thai market soft drinks and DON'T want artificial sweeteners in them, best to check the label these days, because they may not have the same formulation as what they had in the past.

 

 

[TallGuyJohninBKK]

My preferred bottled soft drink these days -- which can be somewhat hard to find, though Lotus stores often stock it -- is the Ichitan brand Jasmine green tea no sugar variety with the white colored bottle cap. Just rechecked the label today, and still says "no sugar" and no mention of any artificial sweeteners on the ingredients label.

 

[J Branche]

Are they sure the high sugar beverages have been eradicated?  I have a photo from the back of the Coke in the refrigerator.

 

The label indicates it has 15 grams per 200 ml serving.  That would indicate a liter will have 200 ml x 5 = 1 liter.  15 grams X 5 = 75 grams per liter.

 

"The shift in product composition is evident in the numbers:"

"Drinks with 14g or more have been eradicated, declining from 819 to zero."

 

The Coke says it has 29% than regular Coke.