Irish Sugar Tax: 60% of Supermarket Drinks Unaffected, €233M Raised Since 2018

A 2018 study led by Dr. Frank Houghton from the Technological University of the Shannon found that Ireland's Sugar Sweetened Drinks Tax (SSDT) has not consistently increased prices for consumers. Researchers monitored carbonated drink prices across Ireland and discovered that 60% of supermarket products that should have shown a price difference due to the tax did not. In hospitality venues, 88% of prices remained unchanged.

The SSDT imposes an additional 5c on 330ml cans with 5-8g of sugar per 100ml, and 8c for over 8g per 100ml. Despite inconsistent price increases, consumer buying habits have shifted. Emer Healy, Director at Kantar Worldpanel, noted that while national spending on carbonates reached over €320 million in 2026, nearly 54% of sales were for low or zero-sugar options. The Irish Beverage Council, represented by Robert Kiernan, states that the industry has been reducing sugar content for over two decades, driven by changing consumer preferences rather than solely the tax.

However, Dr. Houghton expressed concern that while sugar concentration in some reformulated drinks has decreased, product volumes have increased, potentially negating some health benefits. Since its inception in May 2018, the sugar tax has generated over €233 million, contributing approximately €30 million annually to the exchequer. The Irish Heart Foundation advocates for strengthening the tax and ringfencing its funds to subsidize healthier foods in high-obesity areas.