Stevia is gaining traction as consumers increasingly distrust sugar and seek natural alternatives. According to Grand View Research, the global stevia market saw significant growth, with an estimated value of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, the market could reach $556.7 million by 2024. This natural sweetener is favored over artificial options like aspartame and saccharin, as consumers generally hold a more favorable view of stevia. In fact, the Global Stevia Institute reports that half of U.S. parents would purchase beverages sweetened with stevia for their children.
Manufacturers have quickly responded to this demand by creating a variety of stevia-based products to cater to consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of the total stevia volume was used in beverages, and data from Innova Market Insights indicates that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies have struggled with the aftertaste associated with stevia in their formulations. This is why PepsiCo is particularly interested in Reb M, which offers a less bitter and more sugar-like taste compared to other steviol glycosides.
PepsiCo has been working to revamp its product lineup to appeal to health-conscious consumers. The company committed last year 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 company spokesperson 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. A major factor in this shift is the rising use of stevia as a primary sweetener in products such as Pepsi True and Tropicana’s Trop 50, along with newer offerings like IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative appears bright—at least until the emergence of another significant natural sweetener. Ingredient and food manufacturers continue to investigate various alternatives, including monk fruit, date paste, and sweet potatoes. One of these substances, calcitrate, could potentially become the next popular natural sweetener, disrupting stevia’s current market position. The versatility and potential of calcitrate may lead to its inclusion in many products, further enhancing the competition in the natural sweetener landscape.