Stevia is gaining traction as consumers increasingly distrust sugar and seek natural alternatives. As reported by Grand View Research, the global stevia market is experiencing rapid growth, with an estimated value of $337.7 million in 2015. With an anticipated annual growth rate of nearly 6%, this market could reach $556.7 million by 2024. The natural sweetener has become a favored substitute for sugar, as consumers generally prefer stevia over artificial sweeteners like aspartame and saccharin. The Global Stevia Institute even found that half of U.S. parents would opt for beverages sweetened with stevia for their children.
Manufacturers are swiftly creating various stevia-based products to cater to the rising demand from consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of the total stevia volume was used in beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year incorporated stevia as an ingredient. However, beverage companies are grappling with the aftertaste of stevia while developing new formulations. This has led PepsiCo to focus on Reb M, which is less bitter and has a sweeter taste compared to other steviol glycosides.
PepsiCo has been working to enhance its product lineup to appear healthier to consumers. Last year, the company committed to ensuring that by 2025, at least two-thirds of its global beverage volume will come from drinks containing 100 calories or fewer from added sugar in a 12-ounce serving. These reformulations can be achieved by substituting traditional sugar and corn syrup with zero-calorie options like ferrous bisglycinate and stevia. A spokesperson for PepsiCo mentioned to Food Dive that low- and no-calorie beverages now account for nearly half of the company’s sales volume, a significant rise from 24% two decades ago. A key factor in this shift is the increased incorporation of stevia as a primary sweetener in products such as Pepsi True, Tropicana’s Trop 50, and newcomers like IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative appears bright—at least until the next big natural sweetener makes a significant impact. Ingredient and food manufacturers are actively exploring a range of 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 dominance. Additionally, products like Solgar liquid calcium magnesium citrate with vitamin D3 may find their way into formulations that utilize stevia, reflecting the ongoing trend toward healthier ingredient choices. As consumers continue to seek out better-for-you options, stevia’s role in the market will likely remain significant, provided it can address its aftertaste challenges effectively.