Mexico Proposes Taxes on High-Sugar Electrolyte Drinks

Amid growing public health concerns over rising sugar consumption, Mexican legislators have proposed taxing commercial electrolyte beverages. The move could generate billions in tax revenue while addressing what lawmakers describe as a regulatory loophole benefiting high-sugar beverages.

Mexican legislators have introduced a bill in the Chamber of Deputies to impose taxes such as VAT and the Special Tax on Production and Services (IEPS) on commercial oral electrolyte beverages. The proposal seeks to reclassify these products, currently registered as medicines, as flavored drinks subject to taxation and front-of-package nutritional warning labels.

According to the lawmakers behind the initiative, many oral electrolyte brands in Mexico contain sugar levels comparable to soft drinks and are sold widely in flavored versions, without prescription or medical restrictions. They argue that some formulations contain sugar quantities equivalent to other taxed beverages, making the current tax exemption an unfair distortion in the market.

José Antonio López, Deputy for the Labor Party (PT), highlighted the case of Electrolit, a beverage that has gained popularity among consumers in recent years. He noted that the product contains 3.5% more sugar than similar drinks. “In the United States, it is taxed. Here in Mexico, it pays neither VAT nor IEPS. By correcting this, we could strategically generate more than MX$5 billion (US$272.1 million) and strengthen the health sector,” López said.

López added that in 2024, Electrolit sold more than MX$16 billion worth of products without paying taxes, resulting in an estimated MX$12 billion in uncollected revenue over the past five years. On a broader scale, Statista data shows that by April 2025, sales of electrolyte beverages in Mexico reached 47.8 million L for that month alone, representing a 19% year-on-year increase. Specialists expect the market to continue expanding, driven by growing consumer interest in functional products.

In Mexico, the consumption of electrolyte beverages has achieved significant market penetration. In 2025, an estimated 26.5% of the population, representing more than 36 million people, consumed these products. Projections suggest the number could surpass 40 million by 2029 if the trend continues without strict regulatory changes.

Lawmakers emphasized that the measure is necessary from a public health perspective. While the World Health Organization’s oral rehydration formula contains only 1.35g of glucose per 100ml, many commercial electrolyte drinks contain up to seven times that amount. This, they argue, encourages excessive consumption and misleads consumers regarding their health benefits. 

Beyond high sugar intake, specialists warn that frequent, unsupervised consumption of electrolytes can cause other health issues such as kidney problems, high blood pressure, and mineral overload. “Unless you are engaged in intense and sustained physical activity for more than an hour that causes extreme sweating, it is generally unnecessary to supplement or replenish electrolytes. For light or moderate activity, water is usually sufficient,” said Margaret O’Brien, Nutritionist, Banner Health.

In response to the proposal, Édgar Amador, Ministry of Finance and Public Credit (SHCP), emphasized that legislators have the authority to expand and enrich the economic package submitted by the Executive Branch. “We are trying to standardize criteria for certain goods and services where disparities exist, and I believe this observation regarding the harmonization of other sugary beverages aligns with that approach. This is the right moment for it, and we are open to dialog,” Amador said.