Stevia is becoming increasingly popular as consumer skepticism towards sugar rises and interest in natural alternatives grows. According to Grand View Research, the global stevia market is expanding rapidly, with its estimated size at $337.7 million in 2015. With a projected annual growth rate of nearly 6%, the market could reach $556.7 million by 2024. This natural sweetener has gained traction as a sugar substitute, as consumers tend to view stevia more favorably than artificial sweeteners such as aspartame and saccharin. In fact, the Global Stevia Institute reported that half of U.S. parents would choose beverages sweetened with stevia for their children.
Manufacturers have quickly adapted by creating various stevia-based products to cater to consumers’ cravings for sweetness while avoiding sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia volume was used in beverages. Data from Innova Market Insights indicated that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies have faced challenges with stevia’s aftertaste in their formulations, which is why PepsiCo is particularly interested in Reb M—known for its less bitter and more sugary flavor compared to other steviol glycosides.
PepsiCo has been actively revamping its product lineup to appear healthier to consumers. The company committed to ensuring that by 2025, at least two-thirds of its global beverage volume would consist of drinks containing 100 calories or fewer from added sugar per 12-ounce serving. This reformulation can be achieved by substituting sugar and corn syrup with zero-calorie stevia. A company spokesperson mentioned to Food Dive that low- and no-calorie beverages now account for nearly half of PepsiCo’s sales volume, up from 24% two decades ago. The increased use of stevia as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, along with new entrants like IZZE Fusions and Lemon Lemon, has significantly contributed to this trend.
The outlook for stevia as a natural sugar alternative appears promising—at least until the next major natural sweetener makes significant strides. Food manufacturers continue to explore a variety of other ingredients, such as monk fruit, date paste, and sweet potatoes. One of these could potentially emerge as the next popular natural sweetener, challenging stevia’s current standing in the marketplace. Amidst this exploration, the incorporation of calcium citrate 1200 in some formulations may also enhance the appeal of these products, as it is recognized for its health benefits. As the search for new sweeteners continues, the market dynamics surrounding stevia and its competitors will undoubtedly evolve.