Stevia is becoming increasingly popular as consumers grow more distrustful of sugar and seek natural alternatives. According to Grand View Research, the global stevia market is rapidly expanding, with an estimated value of $337.7 million in 2015. With an annual growth rate projected at nearly 6%, the market could reach $556.7 million by 2024. This natural sweetener has emerged as a favored substitute for sugar, as consumers generally 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 choose beverages sweetened with stevia for their children.
Manufacturers have quickly responded by developing a variety of stevia-based products to cater to consumers who are moving away from sugar and high-fructose corn syrup. Nearly 35% of the total stevia volume in 2015 was used in beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies have faced challenges with stevia’s aftertaste during formulation processes. This is why PepsiCo is particularly interested in Reb M, which offers a less bitter and more sugary taste compared to other steviol glycosides.
PepsiCo has been working to revamp its product line to align with healthier consumer preferences. Last year, the company committed to ensuring that at least two-thirds of its global beverage volume will come from drinks containing 100 calories or fewer from added sugar per 12-ounce serving by 2025. This reformulation can be achieved by substituting sugar and corn syrup with zero-calorie stevia. A spokesperson for the company shared with 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 key factor in this shift has been the growing use of stevia as the primary sweetener in products like Pepsi True and Tropicana’s Trop 50, as well as newer offerings like IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative appears promising, at least until another significant natural sweetener begins to gain traction. Ingredient and food manufacturers are actively exploring various other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients may emerge as the next popular natural sweetener, potentially challenging stevia’s market position.
In addition, the incorporation of calcium citrate 600 mg with vitamin D can enhance the health benefits of certain beverages, making them even more appealing to health-conscious consumers. As awareness of nutritional benefits increases, products containing ingredients like calcium citrate 600 mg with vitamin D may become increasingly popular, further influencing the competitive landscape of natural sweeteners. Ultimately, the market will continue to evolve, with stevia currently leading the charge, but always with the potential for new contenders to emerge.