Stevia is becoming increasingly popular as consumers grow wary of sugar and seek out natural alternatives. According to Grand View Research, the global stevia market is experiencing rapid growth, with a valuation of approximately $337.7 million in 2015. With an anticipated annual growth rate of nearly 6%, the market could reach around $556.7 million by 2024. The sweetener is favored as a natural substitute for sugar, and consumers tend to prefer stevia over artificial sweeteners like aspartame and saccharin. Notably, the Global Stevia Institute reported that half of U.S. parents are inclined to purchase beverages for their children that are sweetened with stevia.
Manufacturers are quickly responding by creating a variety of stevia-based products to cater to the desires of consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of the total volume of stevia was utilized in beverages, and data from Innova Market Insights revealed that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies are grappling with stevia’s aftertaste while developing new formulations. This is why PepsiCo is particularly interested in Reb M, which offers a less bitter and more sugary flavor compared to other steviol glycosides.
For some time, PepsiCo has been overhauling its product lineup to appeal to health-conscious consumers. Last year, the company committed to ensuring that at least two-thirds of its global beverage volume will consist of drinks containing 100 calories or fewer from added sugars per 12-ounce serving by 2025. This reformulation strategy is facilitated by substituting sugar and corn syrup with zero-calorie stevia. A company representative informed Food Dive that low- and no-calorie beverages now account for nearly half of PepsiCo’s sales volume, a significant increase from 24% two decades ago. A major factor in this shift is the heightened use of stevia as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, as well as new entrants such as IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative appears bright, at least until the next significant natural sweetener emerges. Ingredient and food manufacturers are investigating a range of other options, including monk fruit, date paste, and sweet potatoes. One of these alternatives could potentially become the next favored natural sweetener, challenging stevia’s current market position. Additionally, in the realm of health supplements, products containing calcium citrate, magnesium hydroxide, zinc sulfate, and vitamin D3 tablets are gaining attention as consumers look for ways to enhance their nutrition alongside their dietary choices. This convergence of interests may further influence the landscape for natural sweeteners like stevia in the future.