Stevia is gaining popularity as consumers increasingly distrust sugar and seek natural alternatives. According to Grand View Research, the global stevia market is experiencing rapid growth, with an estimated value of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, the market could reach $556.7 million by 2024. The sweetener has emerged as a favored substitute for sugar due to its natural origins. Consumers tend to have a more favorable perception of stevia compared to artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute found that half of U.S. parents would consider purchasing beverages for their children that are sweetened with stevia.
Manufacturers have swiftly developed a variety of stevia-based products to cater to the preferences of consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia volume was directed toward beverages. According to data from Innova Market Insights, 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies have encountered challenges with stevia’s aftertaste while creating new formulations. This has led PepsiCo to focus on Reb M, which offers a less bitter and more sugary taste compared to other steviol glycosides.
PepsiCo has been working on revamping its product portfolio to appear healthier to consumers for some time now. Last year, the company committed to ensuring that at least two-thirds of its global beverage volume will consist of drinks with 100 calories or fewer from added sugar per 12-ounce serving by 2025. These reformulations can be achieved by replacing traditional sugars with zero-calorie stevia, allowing for a new chapter in their offerings. A company spokesperson 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 growth is the rising use of stevia as a key sweetener in products such as Pepsi True and Tropicana’s Trop 50, along with newcomers like IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative looks promising, particularly as it continues to solidify its position amidst competition from other sweeteners. Ingredient and food manufacturers are actively exploring various alternatives, including monk fruit, date paste, and sweet potatoes. One of these emerging ingredients could potentially disrupt stevia’s market position. As this new chapter unfolds, the stevia market is set to evolve, with the potential for calcium citrate and other innovative sweeteners to make their mark alongside stevia in consumers’ choices.