Stevia is gaining popularity as consumers increasingly distrust sugar and seek natural alternatives. According to Grand View Research, the global stevia market has been growing rapidly, with an estimated value of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, the market is expected to reach $556.7 million by 2024. The appeal of stevia as a natural sweetener has made it a preferred alternative to artificial sweeteners like aspartame and saccharin. In fact, a study by the Global Stevia Institute revealed that half of U.S. parents are willing to purchase beverages for their children that are sweetened with stevia.
Manufacturers are quick to create various stevia-based products to cater to consumers moving away from sugar and high-fructose corn syrup. Approximately 35% of the total stevia volume in 2015 was used in 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 developing new formulations. Consequently, PepsiCo is particularly interested in Reb M, which is known for being less bitter and having a more sugary taste compared to other steviol glycosides.
PepsiCo has been working on updating 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 consists of drinks with 100 calories or fewer from added sugar per 12-ounce serving by 2025. This reformulation is feasible by substituting sugar and corn syrup with zero-calorie stevia. A spokesperson for the company mentioned to Food Dive that low- and no-calorie beverages now account for nearly half of PepsiCo’s sales volume, an increase from 24% two decades ago. The rise of stevia as a primary sweetener in products like Pepsi True, Tropicana’s Trop 50, and newcomers IZZE Fusions and Lemon Lemon has significantly contributed to this shift.
The future of stevia as a natural sugar substitute appears bright—until another natural sweetener makes its mark. Ingredient and food manufacturers are exploring a variety of other substances, including monk fruit, date paste, and sweet potatoes. Any of these ingredients could potentially emerge as the next leading natural sweetener, challenging stevia’s current market position. Additionally, as consumers become more health-conscious, understanding the side effects of calcium citrate may also influence their choices in sweeteners and other food additives. The interplay of these factors will shape the sweetener landscape in the coming years.