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June 27, 2017

Estonia sugar tax plan takes in dairy, plant-based drinks

The Estonian parliament has approved introducing a special tax on sales of sugary drinks, including dairy products, causing concern within the Baltic state’s food and dairy industry.

The Estonian parliament has approved introducing a special tax on sales of sugary drinks, including dairy products, causing concern within the Baltic state’s food and dairy industry. 

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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Taxable beverages mentioned in the law now include sweet drinkable yogurt, kefir (fermented milk drinks), as well as sweetened soy milk.

Eesti Toiduainetööstuse Liit, Estonia’s food industry association, along with Estonian Chamber of Commerce and Industry, have urged the country’s President Kersti Kaljulaid not to approve the legislation. They have combined with the Estonian Dairy Association  – Eesti Piimaliit – in opposing the law, arguing it would be both unconstitutional and ineffective. 

In addition, the Estonian food industry association has predicted the law would make Estonian products more expensive, with its president Sirje Potisepp saying: “Taxes on sweetened beverages from the parliament will not contribute to reducing obesity. There is simply no research that proves the impact on health outcomes.” 

Potisepp added the law would not force manufacturers to reduce sugar content, noting Estonian food manufacturers had already voluntarily reduced added sugars in products by about a quarter in the past 20 years.

If passed, the tax is set to come into effect on 1 January 2018, but manufacturers that declare they plan to reduce sugar content will give a two-year exemption to allow them to adjust their recipes and enable consumers to adapt to changes in taste.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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