Stevia is gaining popularity as consumers increasingly distrust sugar and seek natural alternatives. According to Grand View Research, the global stevia market is expanding rapidly, with an estimated value of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, the global stevia market could reach approximately $556.7 million by 2024. This sweetener is favored as a natural alternative to sugar, and consumers generally hold a more favorable view of stevia compared to artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute reported that half of U.S. parents would choose beverages sweetened with stevia for their children.
Manufacturers are quickly creating various stevia-based products to cater to consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia volume was allocated to beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year included stevia as an ingredient. However, soft drink companies have faced challenges with stevia’s aftertaste when developing new formulations. This is why PepsiCo is particularly interested in Reb M, which offers a less bitter and more sugary flavor compared to other steviol glycosides.
PepsiCo has been working on revamping its product line to be perceived as healthier by consumers for some time. Last year, the company committed to ensuring that 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 by 2025. These reformulations are made feasible by substituting sugar and corn syrup with zero-calorie stevia. A spokesperson for the company informed 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 major factor in this growth is the rising use of stevia as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, as well as newcomers such as IZZE Fusions and Lemon Lemon.
The outlook for stevia as a natural alternative to sugar appears promising—at least until another major natural sweetener makes a significant impact. Ingredient and food manufacturers continue to explore a range of other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could emerge as the next trending natural sweetener, potentially disrupting stevia’s current market position. Additionally, the inclusion of now calcium citrate powder in various formulations may enhance the appeal of these products, adding yet another layer of innovation to the evolving landscape of natural sweeteners.