Brands face big squeeze over fatty food ad clampdown

Most advertisers, broadcasters and online platforms might have already voluntarily started adhering to the Government’s new Less Healthy Food (LHF) legislation in October but the scale of the challenge and opportunity facing brands has been exposed just ahead of the official launch in January 2026.

Despite years of industry preparation, the majority (60%) of UK consumers remain unaware of the new rules. Once informed, 67% support them, and 74% believe they will encourage healthier eating habits. This disconnect signals a critical moment for brands: regulation sets the boundaries, but creativity will define the winners.

That is according to new research from Dentsu’s Consumer Navigator report, “The UK’s New Appetite”, which also reveals consumers expect brands to lead. Some 44% say food brands – not the Government or retailers – should take responsibility for healthier products.

Worryingly, only 18% fully trust health claims from brands; nearly a quarter don’t trust them at all, while over a third of Gen Z, Millennials and Gen X cite affordability as the main obstacle to eating better.

The LHF rules restrict traditional advertising routes across TV, video on demand services and paid online, targeting where brands show up and how they influence audiences, from retail media to creator partnerships.

Some 85% of consumers want tighter controls on advertising in spaces visible to children, including social media and influencer content.

This means brand storytelling, owned ecosystems, and retail media will become the decisive battlegrounds, the report claims, adding that reformulation alone will not drive growth; creativity that makes healthier choices desirable will.

Carat head of planning Joe Molony said: “There is a clear disconnect between regulation itself and recognition of these new regulations. Brands that bridge this gap, educating all generations of shoppers and consumers, building their trust and owning the conversation, will win.

“Compliance alone won’t cut it; creativity and transparency will define leadership, along with striking the right balance of medium, message and messenger. In-store environments, digital platforms and packaging are now the battlegrounds for trust and loyalty.”

Dentsu Creative UK&I chief executive Jessica Tamsedge added: “People are looking to brands for leadership and confidence. In the context of LHF regulation, this is about making healthier choices feel rewarding, not restrictive.

“Reformulation is expected, but creativity sells it. The brands that act quickly and collapse the false dichotomy between health and taste will set the standard for the next chapter of food marketing.”