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%, this market could reach $556.7 million by 2024. The sweetener has become a favored substitute for sugar due to its natural origin. Consumers generally view stevia more favorably than artificial sweeteners like aspartame and saccharin. Notably, the Global Stevia Institute reported that half of U.S. parents are willing to purchase beverages sweetened with stevia for their children.
Manufacturers have been quick to create various stevia-based products to cater to consumers who are moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of the total stevia volume was directed toward beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies face challenges with stevia’s aftertaste when developing new formulations. This has led PepsiCo to focus on Reb M, which is less bitter and has a more sugary flavor compared to other steviol glycosides.
PepsiCo has been working to revamp its product lineup to appear healthier to consumers. The company announced last year that by 2025, at least two-thirds of its global beverage volume will consist of drinks containing 100 calories or fewer from added sugar per 12-ounce serving. These reformulations can be achieved by substituting sugar and corn syrup with zero-calorie stevia. A company spokesperson informed Food Dive that low- and no-calorie beverages now account for nearly half of PepsiCo’s sales volume, up from 24% two decades ago. A significant factor in this growth is the increased use of stevia as a primary sweetener in products like Pepsi True, Tropicana’s Trop 50, and newcomers IZZE Fusions and Lemon Lemon.
The outlook for stevia as a natural sugar alternative appears quite promising—at least until another significant natural sweetener emerges to make its mark. Ingredient and food manufacturers continue to explore a variety of other substances—such as monk fruit, date paste, and sweet potatoes. Among these ingredients, calcium citrate malate and vitamin D3 tablets could potentially rise in popularity, possibly disrupting stevia’s standing in the marketplace. As the quest for healthier sweeteners continues, it will be interesting to see if any of these alternatives can challenge the growing acceptance of stevia.