The UK Sugar Tax Is Expanding: What It Means for Milkshakes & Indulgent Beverages
Trends
6th May 2025
In a renewed effort to combat rising obesity and related health issues, the UK government is considering a significant expansion of its Soft Drinks Industry Levy (SDIL), commonly known as the “sugar tax.” Originally introduced in 2018 to target high-sugar soft drinks, the SDIL has already influenced the reformulation of countless carbonated beverages. New proposals suggest this levy could soon encompass milk-based drinks—including flavoured milkshakes and iced coffees (see the BBC’s reporting for more on this UK legislation).
Why the Expansion Matters
For many consumers, flavoured milk drinks are synonymous with indulgence. From rich chocolate milkshakes to sweet caramel lattes, these beverages rely heavily on added sugars to deliver their signature taste. An extension of the SDIL to include these products would significantly shift the playing field for brands in this category.
Manufacturers may face increased costs if their recipes exceed government-defined sugar thresholds. More importantly, they risk losing consumer loyalty if reformulations fall short in flavour or texture.
A Catalyst for Innovation
The demand for lower sugar products is growing, but so is the expectation that these alternatives deliver on taste, mouthfeel, and satisfaction.
While regulatory pressure can seem like a threat, it also represents an opportunity to reimagine indulgent beverages for the modern consumer. Consumers want healthier choices, but not at the expense of enjoyment.
How Nactarome Can Help
At Nactarome, we understand the complexities of sugar reduction. Our approach isn’t just about taking sugar out—it’s about enhancing what remains. With our portfolio of natural flavourings, functional ingredients, and clean label solutions, we help brands achieve a delicate balance between health and hedonism.
Here’s how we support our partners:
- Sugar Reduction Without Sacrifice: Our flavour systems are designed to maintain a rich, creamy profile, even with significantly reduced sugar content.
- Natural Sweetness Enhancement: We use plant-based sweetness modulators and masking agents to boost perceived sweetness.
- Mouthfeel Matters: We leverage functional ingredients to replicate the full-bodied texture that consumers associate with premium milk-based drinks.
- Clean Label Compliance: We help brands meet consumer and regulatory demands for transparency, simplicity, and sustainability in ingredient lists.
At Nactarome, we believe that indulgence and wellness can go hand in hand. With the right expertise and tools, it’s possible to deliver beverages that are both regulatory-ready and irresistibly delicious.
Contact
Get in touch at info@nactarome.com to learn more about how we can support your sugar reduction projects or have a look through our website.
