Stevia is gaining popularity as consumer skepticism towards sugar increases, alongside a rising interest in natural alternatives. According to Grand View Research, the global stevia market is experiencing rapid growth, valued at approximately $337.7 million in 2015. With an anticipated annual growth rate of nearly 6%, it is projected that the market could reach $556.7 million by 2024. Stevia has emerged as a favored sugar substitute due to its natural origins. Consumers tend to favor stevia over artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute reported that half of U.S. parents would choose beverages sweetened with stevia for their children.
Manufacturers have swiftly developed a variety of stevia-based products to cater to consumers seeking alternatives to sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia volume was utilized in beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies face challenges with the aftertaste of stevia in their new formulations. This is why PepsiCo is particularly interested in Reb M, which offers a less bitter and more sugar-like flavor compared to other steviol glycosides.
PepsiCo has been actively revamping its product lineup to align with consumer preferences for healthier options. 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 facilitated by substituting sugar and corn syrup with zero-calorie stevia. A representative from the company shared with 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 incorporation of stevia as a primary sweetener in products like Pepsi True, Tropicana’s Trop 50, and new entries such as IZZE Fusions and Lemon Lemon.
The future for stevia as a natural sugar alternative appears promising—at least until another natural sweetener makes significant strides in the industry. Ingredient and food manufacturers are exploring a range of other options, including monk fruit, date paste, and sweet potatoes. One of these alternatives could emerge as the next popular natural sweetener, potentially challenging stevia’s market position. Interestingly, the trend of using stevia-based beverages is exemplified in products like calcium citrate orange juice, which combines health-conscious ingredients with natural sweetness, further illustrating the evolving landscape of consumer preferences.