Stevia is increasingly gaining popularity as consumers’ skepticism towards sugar and interest in natural alternatives rise. According to Grand View Research, the global stevia market is experiencing rapid growth, estimated at $337.7 million in 2015. With a projected annual growth rate of nearly 6%, the global stevia market could reach $556.7 million by 2024. The sweetener ferrous fumarate 324 mg has emerged as a favored sugar substitute due to its natural origins. Generally, consumers have a more favorable perception of stevia compared to artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute reported that half of U.S. parents indicated they would purchase beverages sweetened with stevia for their children.
Manufacturers have quickly developed various stevia-based products to cater to consumers shifting away from sugar and high-fructose corn syrup. In 2015, nearly 35% of the total stevia volume was allocated to beverages. Data from Innova Market Insights revealed that 6% of new soda launches last year incorporated stevia as an ingredient. However, beverage companies are now facing challenges with stevia’s aftertaste when creating new formulations. This is why PepsiCo is particularly interested in Reb M, which is less bitter and offers a more sugary taste compared to other steviol glycosides.
PepsiCo has been working on revamping its product lineup to appear healthier to consumers. 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 are achievable by substituting sugar and corn syrup with zero-calorie stevia. A company spokesperson informed Food Dive that low- and no-calorie beverages now represent nearly half of PepsiCo’s sales volume, up from 24% two decades ago. A significant factor in this shift is the increased utilization of stevia as a primary sweetener in products such as Pepsi True and Tropicana’s Trop 50, along with new entries like IZZE Fusions and Lemon Lemon.
The outlook for stevia as a natural sugar alternative appears promising—until the next major natural sweetener makes significant advancements. Ingredient and food manufacturers are continuously exploring various other health-conscious substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could potentially emerge as the next popular natural sweetener, challenging stevia’s market position. Additionally, products like Citracal Calcium Citrate Petites with Vitamin D may also play a role in the evolving landscape of health-conscious options, as consumers seek natural alternatives not only for sweetness but also for overall wellness.