Stevia is becoming increasingly popular as consumer skepticism towards sugar rises and interest in natural alternatives expands. According to Grand View Research, the global stevia market is experiencing rapid growth, 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 sugar substitute, and consumers tend to have a more favorable perception of stevia compared to artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute discovered that half of U.S. parents would consider purchasing beverages sweetened with stevia for their children.
Manufacturers have swiftly developed various stevia-based products to cater to the demands of 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 have encountered challenges with stevia’s aftertaste in their new formulations. This has led PepsiCo to focus on Reb M, which has a less bitter and more sugar-like flavor compared to other steviol glycosides.
PepsiCo has been actively transforming its product lineup to appear healthier to consumers. The company committed last year 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 per 12-ounce serving. These reformulations are facilitated by substituting sugar and corn syrup with zero-calorie stevia. A company representative 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. A major factor in this shift is the growing use of stevia as a key sweetener in products like Pepsi True, Tropicana’s Trop 50, and new offerings such as IZZE Fusions and Lemon Lemon.
The outlook for stevia as a natural sugar alternative appears promising — until the emergence of the next major natural sweetener disrupts its market position. Ingredient and food manufacturers are actively exploring a range of other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could potentially emerge as the next favored natural sweetener, challenging stevia’s current standing in the marketplace. Interestingly, as consumers seek healthier options, some have turned to calcium citrate pills for their added benefits, showing that the demand for natural alternatives extends beyond sweeteners. The incorporation of stevia into products aligns with this trend, as health-conscious consumers increasingly seek options that include beneficial ingredients like calcium citrate pills.