An initiative from eight period care brands has gone viral after their efforts to raise awareness about the tax on menstrual products in the US made headlines earlier this month. The Tampon Tax Back Coalition is a joint venture between period care brands August, Cora, Lola, The Honey Pot, Rael, Here We Flo, Saalt, and Diva, and was publicly announced in October. The fact that the brands are technically competitors is a key reason the coalition has generated so much buzz. In a public statement, N
ement, Nadya Okamoto, the co-founder of August, explained, “With this coalition, we are fostering a new ethos where industry competitors are becoming unlikely allies, joining forces not for profit, but for equality.
“I’ve fought to end this unjust tax for more than a decade — back when it was still active in 40 states. By locking arms with our period care competitors, this coalition is a powerful next step to hopefully abolish the tampon tax across the country and provide educational resources for menstruators.”
The Tampon Tax Back initiative was first launched in May, when August, a sustainable period care brand based in New York, set up the #TamponTaxBack campaign on social media. The hashtag was created to draw awareness to the brand’s decision to reimburse individuals for any tax paid on purchases of its tampons and pads.
Encouraged by the positive response on social media, August decided to team up with its peers in the industry to work towards completely abolishing the tampon tax within the US.
As part of the initiative, participating brands will reimburse customers for any taxes paid on products purchased from a retail store in a state that still taxes menstrual products. Customers must submit a receipt within 10 days of purchase, and will then be refunded via Venmo within two business days.
What is an essential item?
As of this year, 21 states in the US still enforce a sales tax on feminine hygiene products. This is often referred to as the tampon tax, or as an example of the pink tax. The pink tax is a markup on goods and services marketed to women, which cost less when they’re marketed to men. For example, razors and deodorant.
While there isn’t a specific tax on feminine products per se, items that are deemed essential, such as food and prescription medication, are generally sold tax-free. This has created a scenario in which Viagra, a medication for male impotence, is exempt from sales tax, but not products like tampons and pads.
At the same time, millions of people currently live in “period poverty” in the US, which means they struggle to afford menstrual products. The added sales tax only makes this worse.
But awareness of these issues is growing. In 2016, period care products were tax-free in just 11 states in the US. Today, that number is 29.
And globally, there are positive signs of change. The Australian government removed its goods and services tax on period products, such as tampons, pads, liners and period underwear, in 2019, and the UK government followed suit in 2021 — thought its move to abolish the value-added tax is limited to tampons and pads.
Does the tax really go away?
One of the main goals of the Tampon Tax Back Coalition is to make period care products more financially accessible and normalize the conversation around menstrual care and wellness.
However, as some studies point out, there may be a downside to abolishing the tampon tax — especially for financially vulnerable communities.
In a research study conducted by University of Texas PhD student Ziyue Xu, the sales and price trends of menstrual products were plotted over a two-year period before and after Illinois’ tampon tax was removed. In the year after the tax was removed, the pre-tax price for tampons and sanitary products rose by one per cent, respectively, while sales of these products dropped by 1.5 per cent and 2 per cent respectively.
Xu noted that the overall price of period products in Illinois remained relatively stable despite the tax being removed, and this shift may have led consumers to seek out more expensive, and seemingly higher quality, period care products, thus lowering the sale of tampons and pads overall.
Indeed, the market for reusable menstrual products, such as period underwear and menstrual cups, is rising. According to Grand View Research, the global reusable period panties market was estimated to be worth $96.34 million in 2022 and is expected to grow at a compound annual growth rate of 17.7 per cent from 2023 to 2030.
One of the key drivers of this market is the concern over adverse environmental effects of single-use menstrual products, largely among millennial and Gen Z consumers, who are seeking out chemical-free and safer period product alternatives.
In comparison, the overall market for feminine hygiene products is expected to grow at a compound annual growth rate of 6 per cent, to reach $56.6 billion by 2023, according to Persistence Market Research.
Factors contributing to the growth of the market include rising menstrual hygiene education and the increased distribution of feminine hygiene products through omnichannel retail routes, including supermarkets, e-commerce, pharmacies, and more.