Stevia is becoming increasingly popular as consumer skepticism towards sugar rises and interest in natural alternatives grows. According to Grand View Research, the global stevia market has been expanding rapidly, with an estimated value of $337.7 million in 2015. With an anticipated growth rate of nearly 6% per year, the global stevia market could reach $556.7 million by 2024. Its natural origin has made stevia a favored substitute for sugar, as consumers generally perceive it more positively than artificial sweeteners like aspartame and saccharin. In fact, a study by the Global Stevia Institute revealed that half of U.S. parents would purchase beverages for their children that are sweetened with stevia.
Manufacturers have swiftly begun developing a variety of stevia-based products to cater to the cravings of consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia volume was directed towards beverages. Data from Innova Market Insights indicated that 6% of new soda launches last year incorporated stevia as an ingredient. However, beverage companies face challenges with stevia’s aftertaste when creating new formulations, which is why PepsiCo is particularly interested in Reb M—a version that is less bitter and has a more sugar-like taste compared to other steviol glycosides.
PepsiCo has been working on refreshing its product lineup to appear healthier to consumers for some time. 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 can be achieved by substituting sugar and corn syrup with zero-calorie stevia. A spokesperson for the company 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. The rise in stevia’s use as a primary sweetener in products like Pepsi True, Tropicana’s Trop 50, and newcomers IZZE Fusions and Lemon Lemon has greatly contributed to this trend.
The future of stevia as a natural sugar substitute seems bright—at least until another natural sweetener makes significant advances. Ingredient and food manufacturers are continuously investigating a range of other substances, including monk fruit, date paste, and sweet potatoes. One of these alternatives could emerge as the next leading natural sweetener, potentially disrupting stevia’s established position in the market.
Moreover, as health consciousness grows, consumers are increasingly seeking products fortified with nutrients like calcitrate and vitamin D. Incorporating these ingredients alongside stevia could enhance the appeal of beverages, making them not only low-calorie but also nutritionally beneficial. This trend toward health-focused formulations may further reshape the landscape of sweeteners, including stevia, as companies strive to meet the evolving demands of consumers.