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 market could reach $556.7 million by 2024. The sweetener is favored as a natural substitute for sugar, with consumers generally holding 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 indicated they would purchase drinks for their children that are sweetened with stevia.
Manufacturers have swiftly responded by creating a variety of stevia-based products to cater to consumers moving away from traditional sugar and high-fructose corn syrup. Nearly 35% of total stevia usage in 2015 was directed toward beverages. According to data from Innova Market Insights, 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies face challenges due to stevia’s somewhat bitter aftertaste when developing new formulations. This is why PepsiCo has shown interest in Reb M, which offers a less bitter and sweeter flavor compared to other steviol glycosides.
PepsiCo has been actively reformulating 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 consist of drinks containing 100 calories or fewer from added sugar per 12-ounce serving. These reformulations are made possible by substituting sugar and corn syrup with zero-calorie stevia. A spokesperson for the company revealed to 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. This shift is largely attributed to the growing use of stevia as a primary sweetener in products like Pepsi and Tropicana’s Trop 50, as well as newer entries like IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative looks promising, at least until the next major natural sweetener gains traction. Ingredient and food manufacturers continue to investigate various other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could potentially emerge as the next popular natural sweetener, challenging stevia’s current market position. Additionally, there is a growing interest in supplements such as calcium magnesium citrate and pure encapsulations, which may also play a role in the evolving landscape of natural sweeteners.