Web-Based Tool Analyses Effects of Tax on Sugary Drink Purchases

Americans have long maintained a deep affection for sugar-laden beverages—not just traditional soda but also sports drinks, energy drinks, and sweetened iced tea. In 2021 alone, the average American purchased around 37 gallons of sugar-sweetened beverages. This translated to an astonishing collective intake of approximately 145,000 calories per day from these drinks. This high level of consumption has alarmed public health experts, given the strong link between excessive sugar intake and chronic conditions such as obesity, diabetes, and cardiovascular disease.

Seeking new ways to address this widespread health concern, researchers at the Fralin Biomedical Research Institute at Virginia Tech Carilion (VTC) have created a first-of-its-kind online platform to simulate how governmental policies — particularly taxes on sugar-sweetened beverages — might alter consumer behaviour. This digital tool, the Experimental Beverage Marketplace, allows scientists to study purchasing patterns in a controlled yet realistic environment. Findings from an initial proof-of-concept study were recently published in Appetite, offering new evidence on the potential effectiveness of beverage taxation strategies.

Dr Jeff Stein, assistant professor and interim co-director of the Centre for Health Behaviours Research at the institute, described the online tool as a critical step forward. “This tool provides a robust opportunity to systematically evaluate the potential effects of tax proposals on purchasing and consumption,” Stein said. “Our aim is to create a strong evidence base so that future food and beverage policies are grounded in research and more likely to achieve meaningful public health outcomes.” The Experimental Beverage Marketplace thus represents an essential innovation in behavioural and nutritional science.

The initial study enrolled 73 participants, all of whom were regular consumers of sugary beverages, were not following any specific dietary restrictions, and served as their household’s primary grocery shoppers. Participants interacted with the online marketplace to complete beverage purchases under different tax conditions. When a tax was applied to sugar-sweetened drinks, participants consistently bought fewer sugary beverages, as measured by fluid ounces, number of items, and total caloric intake. These results aligned with basic economic principles: when the price of a good rises, demand tends to fall.

Haylee Downey, the study’s first author and a doctoral candidate in Virginia Tech’s Translational Biology, Medicine, and Health Graduate Programme, noted the simplicity behind the findings. “In general, people will buy less whatever you tax,” Downey said. “That is a well-established economic theory, and our virtual marketplace allowed us to replicate this concept clearly and effectively.” This outcome confirms that taxation can serve as a viable lever for reducing the consumption of unhealthy products.

Previously, similar experiments had relied on small, physical retail environments explicitly constructed for research purposes. However, such brick-and-mortar models are costly to build, limited in scope, and unable to realistically simulate the wide variety of options available in a modern supermarket. In contrast, the digital marketplace developed by Downey and Stein includes hundreds of beverage options, from individual servings to bulk multipacks, presented through a familiar online shopping interface. Participants reported that the system was user-friendly, supporting its future use in large-scale behavioural studies.

Several American cities — including Philadelphia and Boulder, Colorado — have already implemented taxes on sugar-sweetened beverages, although the rates and specific products targeted vary. Researchers believe that digital tools like the Experimental Beverage Marketplace could help policymakers test and refine proposed interventions before enacting them, thereby anticipating both the intended and unintended consequences. Understanding reductions in sugary drink consumption and possible substitution behaviours is critical for designing policies that promote healthier overall dietary patterns.

Looking ahead, Stein and Downey focus on how consumers adapt when sugary drinks become less attractive through taxation. “Where does the consumption go?” Stein asked. “Are people switching to water, to diet drinks, or are they substituting with other high-sugar products like sweetened cereals?” Addressing these questions will require further modifications to the online tool. Downey is now preparing a second, expanded study, forming the centrepiece of her doctoral dissertation. Ultimately, the researchers hope their work will support more effective public health strategies, leveraging digital innovation to shape healthier futures.

More information: Haylee Downey et al, The Experimental Beverage Marketplace: Feasibility and preliminary validation of a tool to experimentally study sugar-sweetened beverage taxes and beverage purchasing, Appetite. DOI: 10.1016/j.appet.2024.107848

Journal information: Appetite Provided by Virginia Tech

Leave a Reply

Your email address will not be published. Required fields are marked *