The crowding-out effect of sugar-sweetened beverages (SSBs) on household expenditure patterns in Bangladesh

Abstract

Background Consumption of sugar-sweetened beverages (SSBs) or sugary drinks may reduce or even eliminate the household income allocation for other essential commodities. Reducing expenditure for consumption of other household commodities is known as the crowding-out effect of SSB. We aimed to determine the crowding-out effect of SSB expenditure on other household commodities. In addition, we also identified the factors influencing the household's decision to purchase of SSBs. Methods We used the logistic regression (logit and multinomial logit models) and the Seemingly Unrelated Regression (SUR) models. In order to find the probability of a given change in the socio-demographic variables, we also estimated the average marginal effects from the logistic regression. In addition, we regressed the SUR model by gender differences. We used Household Income and Expenditure Survey (HIES) 2016 data to estimate our chosen econometric models. HIES is nationally representative data on the household level across the country and is conducted using a multistage random sampling method by covering 46,075 households. Results The findings from the logit model describe that the greater proportion of male members, larger household size, household heads with higher education, profession, having a refrigerator, members living outside of the house, and households with higher income positively affect the decision of purchasing SSB. However, the determinants vary with the various types of SSB. The unadjusted crowding out effect shows that expenditure on SSB or sugar-added drinks crowds out the household expenditure on food, clothing, housing, and energy items. On the other hand, the adjusted crowding out effect crowds out the spending on housing, education, transportation, and social and state responsibilities. Conclusion Although the household expenditure on beverages and sugar-added drinks is still moderate (around 2% of monthly household expenditure), the increased spending on beverages and sugar-added drinks is a concern due to the displacement of household expenditure for basic commodities such as food, clothing, housing, education, and energy. Therefore, evidence-based policies to regulate the sale and consumption of SSB are required for a healthy nation.

Own price elasticities of the demand for sugar-sweetened beverages in Bangladesh

“…It was also found that the consumption of SSB was higher among older adolescent boys (15-19 years) compared to younger adolescent boys; however, SSB consumption was reported lower among older girls compared to their younger counterparts [14]. Our recent study shows that the household expenditure on beverages and sugaradded drinks is around 2% of monthly household expenditure, however, the spending on beverages and sugar-added drinks is alarming due to the displacement of household expenditure for essential commodities including food, clothing, housing, education, and energy [15].…”

“…The SSBs can generally be defined as sugar-added drinks. Sugar-added drinks may encompass sugar-added soft drinks, carbonated drinks, sugary fruit drinks, sugary soda, and sweetened water [15,20]. Allcott et al (2019) emphasized on tea and coffee to be included in the definition of SSBs if additional sugar is added to tea and coffee [21].…”

“…Allcott et al (2019) emphasized on tea and coffee to be included in the definition of SSBs if additional sugar is added to tea and coffee [21]. Although Allcott et al (2019) and Azad and Huque (2023) favor sugar-added tea and coffee being included in SSBs [15,21], Zheng et al (2015) preferred these to be considered as the substitute products of SSBs [22]. Following Allcott et al (2019), and Azad and Huque (2023), we included tea and coffee in the definition of SSBs [15,21].…”

“…Although Allcott et al (2019) and Azad and Huque (2023) favor sugar-added tea and coffee being included in SSBs [15,21], Zheng et al (2015) preferred these to be considered as the substitute products of SSBs [22]. Following Allcott et al (2019), and Azad and Huque (2023), we included tea and coffee in the definition of SSBs [15,21]. Besides, most of the people in Bangladesh are used to consuming tea and coffee with added sugar [23].…”

“…The HIES 2016 does not explicitly define the SSBs commodities during the data collection [15]. Therefore, we classified SSB commodities into five categories for our study based on the availability of the data.…”