Stevia is increasingly gaining popularity as consumers become more skeptical of sugar and seek natural alternatives. According to Grand View Research, the global stevia market is experiencing rapid growth, valued at approximately $337.7 million in 2015, with a projected annual growth rate of nearly 6%. This trend could push the global stevia market to an estimated $556.7 million by 2024. The sweetener is favored as a natural substitute for sugar, with consumers generally holding a more favorable opinion of stevia compared to artificial sweeteners like aspartame and saccharin. In fact, research from the Global Stevia Institute indicates that half of U.S. parents would purchase beverages sweetened with stevia for their children.
Manufacturers have quickly responded by creating a variety of stevia-based products to satisfy the cravings of consumers moving away from sugar and high-fructose corn syrup. Nearly 35% of the total stevia volume in 2015 was dedicated to beverages. Data from Innova Market Insights reveals that 6% of new soda launches last year included stevia as an ingredient. However, soft drink companies face challenges with stevia’s aftertaste when developing new formulations. This is why PepsiCo is particularly interested in Reb M, which offers a less bitter and more sugar-like taste compared to other steviol glycosides.
For some time, PepsiCo has been working to refresh its product lineup to appear healthier to consumers. Last year, the company committed to ensuring that at least two-thirds of its global beverage volume would come from drinks containing 100 calories or fewer from added sugar per 12-ounce serving by 2025. These reformulations are achievable by substituting sugar and corn syrup with zero-calorie stevia. A company representative informed Food Dive that low- and no-calorie beverages now make up nearly half of PepsiCo’s sales volume, an increase from 24% two decades ago. A significant factor in this shift is the heightened use of stevia as a primary sweetener in products like Pepsi True, Tropicana’s Trop 50, and newcomers such as IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative appears promising, at least until another natural sweetener gains significant traction. Ingredient and food manufacturers continue to explore a range of other options, including monk fruit, date paste, and sweet potatoes. One of these could emerge as the next popular natural sweetener, potentially disrupting stevia’s current market position. Additionally, as health-conscious consumers look for the best calcium citrate supplement, the trend towards natural ingredients may further influence the sweetener landscape. As the industry evolves, the demand for natural alternatives like stevia, alongside other potential sweeteners, is likely to shape consumer choices and product formulations moving forward.