Stevia is becoming increasingly popular as consumers grow wary of sugar and show more interest in natural alternatives. According to Grand View Research, the global stevia market has been expanding rapidly, valued at approximately $337.7 million in 2015. With an annual growth rate projected at nearly 6%, this market could reach $556.7 million by 2024. The natural sweetener is favored over artificial options like aspartame and saccharin, as consumers generally have a more favorable view of stevia. The Global Stevia Institute reported that half of U.S. parents would choose beverages sweetened with stevia for their children.
Manufacturers are quickly developing various stevia-based products to cater to consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of stevia’s total volume was used in beverages. Data from Innova Market Insights indicated that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies are facing challenges with stevia’s aftertaste while formulating new products. This is why PepsiCo is particularly interested in Reb M, which has a sweeter taste and less bitterness compared to other steviol glycosides.
PepsiCo has been revamping its product lineup to appear healthier to consumers. The company committed to ensuring 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. This reformulation can be achieved by replacing sugar and corn syrup with zero-calorie stevia. A spokesperson for the company mentioned that low- and no-calorie beverages now account for nearly half of PepsiCo’s sales volume, a significant increase from 24% two decades ago. The rise in stevia usage as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, along with new offerings like IZZE Fusions and Lemon Lemon, has contributed to this growth.
The future of stevia as a natural sugar alternative appears promising—unless the next big natural sweetener makes significant strides in the market. Ingredient and food manufacturers are continually exploring a variety of other options, including monk fruit, date paste, and sweet potatoes. One of these ingredients could emerge as the next popular natural sweetener, potentially disrupting stevia’s current market position.
Moreover, as consumers seek healthier choices, products like Citracal 500 are gaining traction, emphasizing the importance of calcium in a balanced diet. The rising interest in such health-oriented products aligns with stevia’s increasing acceptance, creating a strong market for natural alternatives that cater to health-conscious consumers.