Sugary drinks and alcoholic beverages are becoming increasingly affordable across much of the world due to persistently low and poorly designed tax systems, a trend that the World Health Organization (WHO) warns is accelerating the rise of obesity, diabetes, heart disease, cancers and injuries—especially among children and young adults.

In two new global reports released this week, the WHO called on governments to significantly strengthen taxes on sugary beverages and alcohol, cautioning that weak taxation policies are allowing health-harming products to remain cheap even as healthcare systems face mounting pressure from preventable noncommunicable diseases and injuries.

“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 WHO noted that the combined global market for sugary drinks and alcoholic beverages generates billions of dollars in profits each year, driving widespread consumption while delivering limited public revenue through health-focused taxes. As a result, societies are left bearing the long-term health and economic costs associated with excessive sugar and alcohol intake.

While at least 116 countries currently levy taxes on sugary drinks—most commonly carbonated sodas—many other high-sugar products such as 100 percent fruit juices, sweetened milk-based drinks and ready-to-drink coffees and teas often escape taxation. The agency also found that although nearly all countries tax energy drinks, there has been no meaningful expansion of these measures in recent years.

A separate WHO assessment on alcohol taxation revealed that at least 167 countries impose some form of tax on alcoholic beverages, yet alcohol has become more affordable or has remained the same price in most regions since 2022. This is largely because taxes have not kept pace with inflation or rising incomes. Alarmingly, wine remains untaxed in at least 25 countries, mostly in Europe, despite well-established evidence linking alcohol consumption to cancer, liver disease, violence and injuries.

“More affordable alcohol drives violence, injuries and disease,” said Dr Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention. “While industry profits, the public often carries the health consequences and society absorbs the economic costs.”

The reports highlight that tax shares on these products remain low worldwide, with global median excise taxes accounting for only a small portion of retail prices. Sugary drink taxes, in particular, are often weak and narrowly applied, covering only parts of the market and allowing many high-sugar beverages to remain inexpensive. Compounding the problem, few countries regularly adjust these taxes for inflation, enabling health-harming products to become steadily more affordable over time.

These findings come despite strong public support for higher health taxes. A 2022 Gallup Poll found that a majority of respondents backed increased taxation on both alcohol and sugary beverages as a means of improving public health.

In response, the WHO is urging governments to raise and redesign health taxes under its new “3 by 35” initiative, which aims to increase the real prices of tobacco, alcohol and sugary drinks by 2035. Public health experts say such measures could play a critical role in curbing consumption, reducing disease burden and generating much-needed revenue for healthcare systems—offering a powerful policy tool at a time when preventable illnesses continue to strain global health resources.