Stevia is increasingly gaining popularity as consumers develop a growing distrust of sugar and seek out 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 an anticipated annual growth rate nearing 6%, the market could reach $556.7 million by 2024. The sweetener is favored as a natural substitute for sugar, and consumers tend to have a more favorable perception of stevia compared to artificial sweeteners like aspartame and saccharin. In fact, research from the Global Stevia Institute revealed that half of U.S. parents would purchase beverages for their children’s consumption that are sweetened with stevia.
Manufacturers are rapidly developing a variety of stevia-based products to cater to the growing number of consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of the total stevia volume was allocated for beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year included stevia as an ingredient. However, soft drink companies face challenges with the aftertaste of stevia when creating new formulations, which is why PepsiCo is particularly interested in Reb M—a variant that is less bitter and has a sweeter taste compared to other steviol glycosides.
PepsiCo has been working on revamping its product lineup to appear healthier to consumers for some time. Last year, the company committed to ensuring that by 2025, at least two-thirds of its global beverage volume would come from drinks containing 100 calories or fewer from added sugars per 12-ounce serving. These reformulations are facilitated by substituting sugar and corn syrup with zero-calorie stevia. A spokesperson for 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. A major factor in this shift is the rising use of stevia as a key sweetener in products like Pepsi True and Tropicana’s Trop 50, along with newer offerings such as IZZE Fusions and Lemon Lemon.
The future for stevia as a natural sugar alternative looks promising—at least until the next significant natural sweetener emerges to make a notable impact. Ingredient and food manufacturers are actively investigating a range of other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could potentially become the next trending natural sweetener, challenging stevia’s current position in the market. Moreover, as consumers look for healthier options, the inclusion of supplements such as Caltrate calcium citrate may also become a consideration in the development of new beverages, further enhancing the appeal of products that utilize stevia.