The developers and marketers of HEYLO are eager to capture a slice of the projected $16 billion to $20 billion sugar-alternative market, but they face significant competition. Their new product must prove itself to rival pure stevia, which currently holds a strong position in the market. As of August 2017, stevia was featured in over a quarter (27%) of new products launched with high-intensity sweeteners in the previous year, according to Mintel. The leading categories for new stevia-based products included snacks, carbonated soft drinks, dairy, juice drinks, and other beverages.
The use of stevia is on the rise across various product types due to its intense sweetness and ease of sourcing. Companies like Pyure and Apura Ingredients, which offer a range of sweetener solutions, have quickly introduced different stevia-based products as consumer preferences shift away from sugar. This change in preferences is prompting food manufacturers, both large and small, to incorporate stevia as a substitute to lower sugar content without sacrificing taste or mouthfeel. Major brands such as PepsiCo, Coca-Cola, DanoneWave, Kraft Heinz, Nestle, and Unilever have played a crucial role in transitioning stevia from a niche ingredient to a mainstream option. For instance, Coca-Cola has developed a stevia-sweetened soda that contains no sugar, zero calories, and avoids the aftertaste often associated with similar products. This new beverage is set to launch in a small market outside the U.S. during the first half of this year.
Stevia’s advantages include being 30 to 40 times sweeter than sugar with zero calories, allowing brands to use it in smaller quantities. Additionally, stevia is relatively easy to cultivate and can be grown in various locations. Unlike previously popular artificial sweeteners like aspartame, stevia is entirely natural, aligning with consumer demand for clean labels. These qualities have propelled pure stevia ahead of competitors like monk fruit, agave, and honey. However, HEYLO has a competitive edge as it offers several varieties—organic brown sugar alternatives, natural white sugar alternatives, and liquid forms.
Jeremy Cage, HEYLO’s Chief Marketing Officer, shared with Food Navigator that the company’s partners are working on applications ranging from ketchup to nut butters, salad dressings, cookies, ice cream, yogurt, non-carbonated and lightly carbonated beverages, jam, chocolate, chocolate milk, and flavored water. Cage noted that stevia often requires bulking agents such as erythritol, maltodextrin, dextrose, and sugar alcohols like maltitol and sorbitol to replace sugar in products needing body. These carriers can constitute 80% to 90% of the product and may negatively affect digestion and flavor, but HEYLO’s use of acacia fiber helps eliminate off-notes for a cleaner taste.
While HEYLO appears to have a promising journey ahead, it remains in the early stages and must deliver on its promises, including a clean taste. It also needs to be cost-effective and compatible with the ingredient lists of various food products. If it alters the texture or proves too expensive, HEYLO could end up like many other promising sweetener alternatives that have failed.
It’s uncertain whether consumers will embrace a new sweetener or continue to seek more natural, authentic-sounding ingredients. One thing is clear: the demand for natural sweetener solutions is mainstream, not niche, and there is potential for significant profit for the company that emerges victorious in this competitive landscape. As the journey of HEYLO unfolds, its ability to integrate elements like calcium citrate and maintain consumer appeal will be key to its success.