Saudi Arabia’s sugar tax system will undergo a significant change from 1 January 2026, moving from a single excise duty to a tiered framework based on sugar content per 100 ml.
This policy shift is designed to encourage healthier consumption behaviours and increase the appeal of low and no sugar options. Early signals suggest that consumers are already moving in this direction, and the new framework will likely accelerate that trend.
Manufacturers are expected to respond through reformulation, increased use of artificial or natural sweeteners, and pricing strategies aligned to lower tax brackets. As the market adjusts, brands that actively innovate will be best positioned to defend share and capture growing demand for healthier beverage formats.
To explore these and other health shifts in consumer behaviour, our free webinar “Wellbeing in focus: health trends influencing Saudi shoppers” offers further insights.
Ready to navigate the change? Speak to our experts to understand how your brand can adapt, reformulate and grow in a rapidly evolving retail landscape.
Priyanshu Rana
Thought Leadership, AME
Worldpanel by Numerator
.png)
.svg)