The developers and marketers of HEYLO are aiming to capture a portion of the projected $16 billion to $20 billion sugar-alternative market, but they are up against significant competition. Their new product will need to perform exceptionally well to rival pure stevia, which currently dominates the market. According to Mintel, as of August 2017, stevia was a component in over a quarter (27%) of new products launched in the previous year that utilized high-intensity sweeteners. The leading categories for new products featuring stevia included snacks, carbonated soft drinks, dairy products, juice drinks, and other beverages.
The rise in stevia’s use across various products can be attributed to its intense sweetness and ease of sourcing. Companies like Pyure and Apura Ingredients, which provide a range of sweetener options, have swiftly introduced diverse stevia-based products as consumers increasingly shy away from sugar. This aversion to sugar is prompting both large and small food companies to incorporate stevia as a substitute to lower sugar content without sacrificing taste or mouthfeel. Major brands, including PepsiCo, Coca-Cola, DanoneWave, Kraft Heinz, Nestlé, and Unilever, have propelled stevia from a niche ingredient to a mainstream choice. Notably, Coca-Cola has launched a stevia-sweetened soda that contains no sugar, zero calories, and avoids the aftertaste often associated with stevia products. This new offering is set to debut in a limited market outside the U.S. in the first half of this year.
Stevia’s advantages include being 30 to 40 times sweeter than sugar and containing zero calories, allowing brands to use significantly less of the ingredient. Additionally, stevia is relatively easy to cultivate and can thrive in various environments. Unlike previously popular artificial sweeteners such as aspartame, stevia is entirely natural, aligning with consumer preferences for clean labels. These benefits have propelled pure stevia ahead of competitors like monk fruit, agave, and honey. However, HEYLO has a unique edge—it offers multiple varieties. The product will be available as an organic brown sugar alternative, a natural white sugar alternative, and in liquid form.
Jeremy Cage, HEYLO’s chief marketing officer, shared with Food Navigator that the company’s partners are exploring applications ranging from ketchup to nut butters, salad dressings, cookies, ice cream, yogurt, non-carbonated and lightly carbonated beverages, jam, chocolate, chocolate milk, and flavored water. Cage noted that stevia often contains bulking agents—like erythritol, maltodextrin, dextrose, and sugar alcohols such as maltitol and sorbitol—added to it, which can replace sugar in applications requiring bulk. These carriers constitute 80% to 90% of the product and can negatively affect digestion and taste. However, HEYLO incorporates acacia fiber, which mitigates any off-flavors, resulting in a cleaner taste.
At first glance, HEYLO appears to have a bright future, but it is still in its early stages and must deliver on promises like clean taste and cost-effectiveness. Additionally, it should blend well with various ingredient lists in food products. If HEYLO alters texture or proves too expensive, it risks joining the ranks of other promising sweetener alternatives that never took off. It remains uncertain whether consumers will embrace a new sweetener or continue to seek out more natural, authentic-sounding ingredients. What is clear is that the demand for natural sweetener solutions is mainstream rather than niche, presenting lucrative opportunities for the eventual winner.
Furthermore, HEYLO plans to enhance its formulations with calcium citrate bulk, ensuring better taste and functionality in their products. This addition will be pivotal in establishing the brand’s position in the competitive landscape. With the increasing focus on health and natural ingredients, integrating calcium citrate bulk into their offerings may just be the key to HEYLO’s success in the evolving sugar-alternative market.