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Does the Prevalence of Obesity Affect the Demand for Soft Drinks? Evidence from Cross-Country Panel Data

Author

Listed:
  • Fabrizio Ferretti

    (Department of Communication and Economics, School of Social Sciences, University of Modena and Reggio Emilia, 42121 Reggio Emilia, Italy)

  • Michele Mariani

    (Department of Communication and Economics, School of Social Sciences, University of Modena and Reggio Emilia, 42121 Reggio Emilia, Italy)

  • Elena Sarti

    (Department of Communication and Economics, School of Social Sciences, University of Modena and Reggio Emilia, 42121 Reggio Emilia, Italy)

Abstract

The impact of soft drinks on obesity has been widely investigated during the last decades. Conversely, the role of obesity as a factor influencing the demand for soft drinks remains largely unexplored. However, understanding potential changes in the demand for soft drinks, as a result of changes in the spread of obesity, may be useful to better design a comprehensive strategy to curb soft drink consumption. In this paper, we aim to answer the following research question: Does the prevalence of obesity affect the demand for soft drinks? For this purpose, we collected data in a sample of 97 countries worldwide for the period 2005–2019. To deal with problems of reverse causality, an instrumental variable approach and a two-stage least squares method were used to estimate the impact of the age-standardized obesity rate on the market demand for soft drinks. After controlling for several demographic and socio-economic confounding factors, we found that a one percent increase in the prevalence of obesity increases the consumption of soft drinks and carbonated soft drinks by about 2.37 and 1.11 L per person/year, respectively. Our findings corroborate the idea that the development of an obesogenic food environment is a self-sustaining process, in which obesity and unhealthy lifestyles reinforce each other, and further support the need for an integrated approach to curb soft drink consumption by combining sugar taxes with bans, regulations, and nutrition education programs.

Suggested Citation

  • Fabrizio Ferretti & Michele Mariani & Elena Sarti, 2022. "Does the Prevalence of Obesity Affect the Demand for Soft Drinks? Evidence from Cross-Country Panel Data," IJERPH, MDPI, vol. 19(2), pages 1-12, January.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:2:p:938-:d:725238
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    References listed on IDEAS

    as
    1. Yang, L. & Bovet, P. & Liu, Y. & Zhao, M. & Ma, C. & Liang, Y. & Xi, B., 2017. "Consumption of carbonated soft drinks among young adolescents aged 12 to 15 years in 53 low-and middle-income countries," American Journal of Public Health, American Public Health Association, vol. 107(7), pages 1095-1100.
    2. Lin, Tracy Kuo & Teymourian, Yasmin & Tursini, Maitri Shila, 2018. "The effect of sugar and processed food imports on the prevalence of overweight and obesity in 172 countries," LSE Research Online Documents on Economics 101053, London School of Economics and Political Science, LSE Library.
    3. repec:aph:ajpbhl:10.2105/ajph.2017.303762_3 is not listed on IDEAS
    4. Matthew J. Kotchen & James H. Stock & Catherine D. Wolfram, 2019. "Introduction to "Environmental and Energy Policy and the Economy"," NBER Chapters, in: Environmental and Energy Policy and the Economy, volume 1, pages 3-7, National Bureau of Economic Research, Inc.
    5. Cawley, John (ed.), 2011. "The Oxford Handbook of the Social Science of Obesity," OUP Catalogue, Oxford University Press, number 9780199736362.
    6. Basu, S. & McKee, M. & Galea, G. & Stuckler, D., 2013. "Relationship of soft drink consumption to global overweight, obesity, and diabetes: A cross-national analysis of 75 countries," American Journal of Public Health, American Public Health Association, vol. 103(11), pages 2071-2077.
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