Stevia is gaining traction as consumers increasingly distrust sugar and seek natural alternatives. According to Grand View Research, the global stevia market is growing rapidly, valued at approximately $337.7 million in 2015. With an anticipated annual growth rate of nearly 6%, the market for stevia could reach $556.7 million by 2024. As a natural sweetener, stevia has emerged as a favored alternative to sugar, with consumers generally viewing it more favorably than artificial sweeteners like aspartame and saccharin. A study by the Global Stevia Institute revealed that half of U.S. parents are willing to purchase beverages sweetened with stevia for their children.
Manufacturers have swiftly developed a range of stevia-based products to cater to consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia consumption was directed toward beverages. Data from Innova Market Insights indicates that 6% of new soda launches in the previous year incorporated stevia as an ingredient. However, soft drink companies face challenges with the aftertaste of stevia when formulating new products, which is why PepsiCo is focusing on Reb M, a variant that offers a less bitter and sweeter taste compared to other steviol glycosides.
PepsiCo has been actively reformulating its product lineup to appear healthier to consumers. The company has committed to ensuring that by 2025, at least two-thirds of its global beverage volume will consist of drinks containing 100 calories or fewer with no added sugars per 12-ounce serving. These reformulations are facilitated by substituting sugar and corn syrup with zero-calorie stevia. A representative from PepsiCo informed Food Dive that low- and no-calorie beverages now account for nearly half of the company’s sales volume, a significant rise 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 newcomers such as IZZE Fusions and Lemon Lemon, has contributed to this shift.
The prospects for stevia as a natural sugar substitute appear promising—at least until the emergence of another significant natural sweetener disrupts its market position. Ingredient and food manufacturers are actively exploring a variety of alternatives, including monk fruit, date paste, and sweet potatoes. One of these ingredients might emerge as the next popular natural sweetener, potentially challenging stevia’s standing in the industry. Additionally, the incorporation of calcium magnesium citrate in various formulations could further enhance the appeal of stevia-based products by providing additional health benefits, creating a more attractive option for health-conscious consumers.