Food taxes and subsidies that make healthy foods cheaper and ultra-processed foods more expensive could significantly improve Australian diets and help reduce chronic disease, according to a new study by The George Institute for Global Health, published in Nature Food.
Poor diets, characterised by excessive consumption of foods high in added salt and sugar and insufficient intake of healthy foods such as fresh fruits and vegetables, whole grains, nuts, and seeds, are linked to one in five premature deaths globally, with most attributed to cardiovascular disease, cancer, and type 2 diabetes. Fiscal policies such as taxes on sugary drinks and subsidies for fresh produce are among the World Health Organization's recommended tools to combat diet-related disease, backed by strong evidence of their effectiveness.
To assess how Australian consumers' food choices change in response to price, researchers analysed grocery purchasing data from 10,000 households over five years. It is the largest study of its kind and the first to evaluate the relationship between price and purchasing behaviour across various food and drink categories.
Researchers found that lowering the price of fresh fruit and vegetables by 20% increased purchasing by up to 20%, while raising the price of sugary drinks by 20% reduced purchasing by 24%. These effects were consistent across socio-economic groups, indicating that pricing strategies can broadly influence dietary behaviour and providing a strong evidence base for policymakers aiming to reduce chronic disease through improved nutrition.
"Amid a cost-of-living crisis, Australians' diets are getting worse, with fewer than 5% of us eating the recommended daily amount of fruit and vegetables," said Tazman Davies, Research Associate in Food Policy at The George Institute and UNSW Sydney.
The federal government currently subsidises fresh produce in 76 highly remote stores across Australia. Based on the study's findings, researchers expect this initiative to significantly improve diets in these communities.
"Expanding the Government's subsidy of fresh foods to other high-need areas could yield further health benefits at a population level by incentivising healthier eating patterns," Davies added.
It might seem obvious that people are more likely to buy healthy food when it's affordable and consume fewer unhealthy foods when their prices increase. However, for governments in Australia and comparable markets to design and implement effective food policies, this type of detailed data is essential.
More than 100 countries have already implemented levies on sugary drinks, and evidence shows they are effective in reducing sugar consumption. Introducing a similar tax in Australia could not only improve health outcomes but also generate revenue to fund subsidies for nutritious food.
For more information:
Rachel Harris
The George Institute for Global Health
Tel: +61 410 411 983
Email: [email protected]
www.georgeinstitute.org
