Stevia is becoming increasingly popular as consumers grow more wary of sugar and seek natural alternatives. According to Grand View Research, the global stevia market has been rapidly expanding, with an estimated value of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, this market could reach $556.7 million by 2024. The sweetener is favored as a natural substitute for sugar, and consumers generally view stevia more positively than artificial sweeteners such as aspartame and saccharin. Notably, the Global Stevia Institute found that half of U.S. parents are willing to purchase beverages sweetened with stevia for their children.
Manufacturers have swiftly developed a variety of stevia-based products to cater to consumers who are moving away from sugar and high-fructose corn syrup. In 2015, approximately 35% of total stevia volume was allocated to beverages. Data from Innova Market Insights revealed that 6% of new soda launches last year included stevia as an ingredient. However, soft drink companies face challenges with stevia’s aftertaste while formulating new products. This is why PepsiCo is particularly interested in Reb M, which has a less bitter and sweeter flavor profile compared to other steviol glycosides.
PepsiCo has been working to revamp its product portfolio to appear healthier to 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 rely on replacing 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. This shift is largely attributed to the increased use of stevia as a primary sweetener in products such as Pepsi True and Tropicana’s Trop 50, along with newcomers like IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative looks promising—until the next significant natural sweetener makes its mark. Ingredient and food manufacturers are actively exploring various other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could potentially emerge as the next trending natural sweetener, challenging stevia’s current market position. Additionally, with the rise in health-conscious consumers, the incorporation of natural supplements like Citracal into beverage formulations may create new opportunities for product innovation and growth.