Week in Insights: Colombia’s Junk Food Tax Creates Opportunities

Curated by Daniel Xu

Colombia has implemented a “junk food law” whose tax system aims to curb consumption of processed food and sugary drinks.

The tax will target ultra-processed foods with an additional 10% surcharge, which will progressively increase to 20% in 2025. Introducing such a tax during a period of worldwide inflation is risky, but Colombia’s food inflation rates have decreased since the beginning of the year, with year-over-year increases dropping to 10.36% in October from 26.18% in January.

Colombia’s new tax policy encourages consumers to make better food choices—which, if ...