A sugar tax in Newfoundland and Labrador increased public awareness to 93% and prompted about one-third of residents to buy fewer sugary drinks, with regular soda purchases dropping 34%, according to a 2026 study of 8,709 Canadian adults. However, most people reported no change in their drinking habits, suggesting that taxes alone may not be enough to significantly reduce soda consumption without additional policies like subsidizing healthy foods.
When Newfoundland and Labrador introduced Canada’s first tax on sugary drinks in September 2022, researchers wanted to know if it actually changed people’s minds and habits. According to Gram Research analysis, a survey of over 8,700 Canadian adults found that nearly all residents in the province knew about the tax, and about one-third said they bought fewer sugary drinks because of it. However, most people said their drinking habits stayed the same. The study shows that taxes can make people aware of sugary drinks, but combining taxes with other strategies, like making healthy foods cheaper, might work better to reduce soda consumption.
Key Statistics
A 2026 cross-sectional study of 8,709 Canadian adults found that 93% of Newfoundland and Labrador residents were aware of the sugar-sweetened beverage tax within months of its September 2022 implementation.
According to research reviewed by Gram, approximately one-third of Newfoundland and Labrador residents self-reported reducing their sugary drink purchases after the tax, with regular soda purchases declining 34% and diet soda declining 18% in 2022.
A 2026 analysis of 8,709 Canadian adults showed that support for a sugar tax remained high at 56% when revenue was earmarked for healthy food subsidies, compared to declining support when the tax was presented without a health promotion frame.
In the 2026 study of Canadian adults, people in Newfoundland and Labrador were 6.4 times more likely to report that sugary drinks cost ‘a lot more’ after the tax compared to residents in other provinces without the tax.
The Quick Take
- What they studied: Whether a new tax on sugary drinks in Newfoundland and Labrador changed how people think about and buy soda and other beverages.
- Who participated: 8,709 Canadian adults aged 18 to 100 years old surveyed in 2021 and 2022, including 813 people from Newfoundland and Labrador. The study compared attitudes before and after the tax went into effect.
- Key finding: 93% of people in Newfoundland and Labrador knew about the tax after it started, and about one-third reported buying fewer sugary drinks. However, most people said their purchasing habits did not change.
- What it means for you: A tax on sugary drinks can make people aware of the issue and may help some people reduce their soda purchases, but it works best when combined with other approaches like making healthy foods more affordable. If you live in a place with a sugary drink tax, you might see prices go up, but changing your habits may require more than just the tax.
The Research Details
Researchers conducted surveys of Canadian adults in 2021 (before the tax) and 2022 (after the tax started in September). They asked people about three things: whether they knew about the tax, whether they thought sugary drinks cost more, and whether they supported the tax policy. The study compared responses from Newfoundland and Labrador with responses from other Canadian provinces to see if the tax had different effects in different places.
The researchers used statistical methods to account for differences between groups, such as age and income, so they could fairly compare how the tax affected people’s attitudes. They also looked at whether people actually changed what drinks they bought, tracking purchases of three types of beverages: taxed sugary drinks, low-calorie or no-calorie drinks, and untaxed drinks like water and milk.
Understanding how people respond to a sugary drink tax is important because it helps governments decide whether this type of policy actually works to reduce soda consumption. This study is one of the first to look at real-world effects in Canada, making it valuable for other provinces considering similar taxes. The findings show that awareness alone may not be enough to change behavior, which could guide future health policies.
This study surveyed a large number of people (8,709) across multiple years, which makes the findings more reliable than a smaller study. The researchers compared the province with the tax to other provinces without it, which helps show whether the tax itself caused changes rather than other factors. However, the study relied on people reporting their own behavior, which can be less accurate than measuring actual purchases. The study was published in a peer-reviewed public health journal, meaning other experts reviewed it before publication.
What the Results Show
After the tax started, 93% of people in Newfoundland and Labrador knew about it, which is very high awareness. People in the province reported that they noticed sugary drinks cost more compared to people in other provinces. Specifically, people in Newfoundland and Labrador were 6.4 times more likely to say sugary drinks cost ‘a lot more’ compared to people in other provinces who said they didn’t notice a change or didn’t know.
About one-third of people in Newfoundland and Labrador said they changed their drink purchases because of the tax. The most common change was buying less regular soda (down 34%), followed by buying less diet soda (down 18%) and less low-calorie energy drinks (down 20%). Some people switched to bottled water, which increased by 12%. However, two-thirds of people said their purchases stayed the same or they weren’t sure if they changed.
Interestingly, opposition to the tax actually increased after it was introduced, rising from 26.5% to 41% of people. However, support for the tax remained high (56%) when people were told the money would be used to make healthy foods cheaper. This suggests that how the tax is explained to the public matters for keeping support.
The study found that people’s support for the tax depended on what the government planned to do with the money. When the tax revenue was earmarked for subsidizing healthy foods, support stayed strong at 56% across both years. This suggests that framing the tax as part of a broader health promotion strategy, rather than just raising prices, helps maintain public approval. The research also showed that while some people reduced their purchases of taxed drinks, many switched to other beverages, which may or may not be healthier depending on what they chose.
This is one of the first studies to examine how a sugary drink tax affects Canadian consumers in real-world conditions. Previous research from other countries, such as Mexico and the United Kingdom, found that taxes do reduce soda purchases, but the effects are often modest. This study’s finding that only about one-third of people changed their behavior aligns with those earlier studies, suggesting that taxes alone have limited impact. The research adds to growing evidence that taxes work best when combined with other policies, such as making healthy options more affordable or accessible.
The study relied on people reporting their own behavior rather than tracking actual purchases, which can be inaccurate because people may forget or misremember what they bought. The study only looked at two years, so it is unclear whether changes in behavior would continue over a longer time period. The study was conducted during a specific time period and in a specific place, so the results may not apply to other regions or future years. Additionally, the study could not determine whether people who changed their behavior did so because of the tax or for other reasons, such as health concerns or personal preferences.
The Bottom Line
If you live in a place with a sugary drink tax, expect to pay more for soda and other sugary beverages. The tax may encourage you to switch to water, milk, or other healthier options, but it is not a guarantee. For best results, combine the tax with other strategies such as making healthy foods more affordable, improving access to water fountains in public places, and education campaigns about the health risks of sugary drinks. Confidence level: Moderate. The evidence shows taxes can increase awareness and prompt some behavior change, but most people need additional support to make lasting changes.
This research matters for government officials deciding whether to implement sugary drink taxes, public health advocates working to reduce soda consumption, and people living in or considering moving to places with these taxes. The findings are particularly relevant for provinces and countries considering similar policies. People with high soda consumption should pay attention, as the tax may affect their household budget. However, the study’s findings are specific to Canada and may not apply to other countries with different food cultures or economic situations.
Changes in behavior may happen quickly after a tax is introduced, as the study found some people reported changing purchases within months of the tax starting. However, most people did not change their habits immediately, suggesting that lasting behavior change takes longer and may require additional support beyond just the tax. If you are trying to reduce your soda intake, expect gradual progress over weeks to months rather than immediate results.
Frequently Asked Questions
Does a sugar tax actually make people drink less soda?
A 2026 study of 8,709 Canadian adults found that about one-third of people in Newfoundland and Labrador reduced their sugary drink purchases after a tax was introduced, with regular soda purchases dropping 34%. However, two-thirds reported no change, suggesting taxes alone have limited impact without additional policies.
How aware are people of sugar taxes on beverages?
Research shows 93% of residents in Newfoundland and Labrador knew about the sugar tax shortly after it was implemented in September 2022. People in the taxed province were 6.4 times more likely to notice price increases compared to residents in provinces without the tax.
What makes people support a sugar tax on drinks?
According to a 2026 study of 8,709 Canadian adults, support for sugar taxes remained strong at 56% when the tax revenue was dedicated to subsidizing healthy foods. Framing the tax as part of a health promotion strategy rather than just raising prices helps maintain public approval.
Do people switch to healthier drinks when soda is taxed?
A 2026 analysis found that when people reduced taxed sugary drinks, some switched to healthier options like bottled water (up 12%), but others chose low-calorie energy drinks (down 20%) or diet soda (down 18%), suggesting mixed results in beverage substitution patterns.
Should governments use sugar taxes to reduce soda consumption?
Research from 8,709 Canadian adults suggests sugar taxes increase awareness and prompt some behavior change, but most people need additional support. Combining taxes with policies like healthy food subsidies and education campaigns appears more effective than taxes alone.
Want to Apply This Research?
- Track your daily beverage purchases and costs for two weeks before and after implementing a personal ‘sugary drink reduction’ goal. Record the type of drink, quantity, and price paid. Compare your spending and consumption patterns to see if awareness of costs motivates change.
- Set a specific goal to replace one sugary drink per day with water or an unsweetened beverage. Use the app to log each substitution and track your progress over a month. This mirrors the behavior change observed in the study where some people increased water purchases.
- Create a monthly dashboard showing your beverage purchases by category (sugary drinks, diet drinks, water, other). Track both quantity and spending. Set a target to reduce sugary drink purchases by 10-20% each month, similar to the 18-34% reductions observed in the study. Review trends quarterly to identify which strategies work best for your household.
This research describes self-reported consumer attitudes and behaviors related to a sugar tax in Canada and should not be interpreted as medical advice. Individual responses to taxes and pricing vary based on personal circumstances, preferences, and health conditions. If you have concerns about your beverage consumption or dietary habits, consult with a healthcare provider or registered dietitian. The findings are specific to Canada and may not apply to other countries or regions with different economic, cultural, or food environments. This study measures reported behavior change, not actual health outcomes, so long-term health benefits of reduced sugary drink consumption have not been directly measured in this research.
This research translation is published by Gram Research, the science division of Gram, an AI-powered nutrition tracking app.