Developers and marketers of HEYLO are aiming to capture a share of the estimated $16 billion to $20 billion sugar-alternative market, but they encounter significant competition. To surpass pure stevia, which currently enjoys a strong market presence, the new product must perform exceptionally well. As of August 2017, stevia was included in over a quarter (27%) of newly launched products utilizing high-intensity sweeteners within the past year, according to Mintel. The leading categories for new products featuring stevia included snacks, carbonated soft drinks, dairy, juice drinks, and other beverages.
The increasing use of stevia across various products is attributed to its intense sweetness and ease of sourcing. Companies like Pyure and Apura Ingredients, which offer a range of sweetener options, have swiftly introduced diverse stevia-based products as consumer preference shifts away from sugar. This aversion to sugar is prompting food manufacturers, both large and small, to incorporate stevia as a substitute to lower sugar content in their offerings without sacrificing taste or mouthfeel. Legacy brands such as PepsiCo, Coca-Cola, DanoneWave, Kraft Heinz, Nestle, and Unilever have played a pivotal role in transitioning stevia from a niche ingredient to a mainstream choice. Notably, Coca-Cola has developed a stevia-sweetened soda that contains no sugar, zero calories, and avoids the aftertaste commonly found in many products with this ingredient. This new product is set to launch in a small market outside of the U.S. during the first half of this year.
Stevia boasts two key advantages: it is naturally 30 to 40 times sweeter than sugar and contains zero calories. This natural strength means that only a small amount is needed, allowing brands to use significantly less of the ingredient. Additionally, stevia is relatively easy to cultivate and can be grown in various locations. Unlike popular artificial sweeteners such as aspartame, which can raise concerns among consumers, stevia is 100% natural, aligning with the growing demand for clean labels.
These attributes have propelled pure stevia ahead of competitors like monk fruit, agave, and honey. However, HEYLO possesses a unique advantage with its variety of offerings. 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, informed Food Navigator that the company’s partners are exploring applications ranging from ketchup to nut butters, salad dressings, cookies, ice cream, yogurt, both non-carbonated and lightly carbonated beverages, jam, chocolate, chocolate milk, and flavored water. Cage noted that stevia often includes bulking agents such as erythritol, maltodextrin, dextrose, and sugar alcohols like maltitol and sorbitol, which can replace sugar in applications requiring bulk or body. These carriers can constitute 80% to 90% of the product and may adversely affect digestion and taste. However, HEYLO incorporates acacia fiber, which mitigates off-notes for a cleaner flavor.
At first glance, HEYLO appears to have a promising future, though it remains in its early stages and must fulfill various commitments, including a clean taste. It also needs to ensure cost-effectiveness and compatibility with ingredient lists in numerous food products. If it alters the texture or proves too expensive, HEYLO risks joining the graveyard of once-promising sweetener alternatives.
It remains uncertain whether consumers will embrace a new sweetener or continue seeking more natural, authentic-sounding ingredients. One thing is clear: the demand for natural sweetener solutions is a mainstream trend, not a niche interest, and there is substantial potential for profit for the eventual winner in this market. Additionally, products like Citracal Caltrate, which offer health benefits, could complement HEYLO’s offerings, further enhancing its appeal in the competitive landscape of sugar alternatives.