Stevia is becoming increasingly popular as consumers grow more skeptical of sugar and seek natural alternatives. According to Grand View Research, the global stevia market has been expanding rapidly, reaching an estimated size of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, it is expected that the global stevia market could hit $556.7 million by 2024. This sweetener has gained traction as a preferred sugar substitute due to its natural origin. Consumers typically view stevia more favorably compared to artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute found that half of U.S. parents would purchase drinks for their children that are sweetened with stevia.
Manufacturers have quickly responded to this trend by developing a variety of stevia-based products to cater to consumers who are moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia volume was used in beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year included stevia as an ingredient. However, beverage companies have faced challenges with the aftertaste associated with stevia when creating new formulations. This is why PepsiCo is particularly interested in Reb M, which has a less bitter and more sugar-like taste compared to other steviol glycosides.
For some time, PepsiCo has been working to revamp its product line to appear healthier to consumers. Last year, the company committed to ensuring that at least two-thirds of its global beverage volume will come from drinks containing 100 calories or fewer from added sugar per 12-ounce serving by 2025. These reformulations are feasible by substituting sugar and corn syrup with zero-calorie stevia. A company spokesperson 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 rising adoption of stevia as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, along with new entrants such as IZZE Fusions and Lemon Lemon, has greatly contributed to this trend.
The outlook for stevia as a natural sugar alternative appears bright—at least until the next significant natural sweetener makes its mark. Ingredient and food manufacturers are actively exploring various other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients might emerge as the next natural sweetener of choice, potentially disrupting stevia’s current market position. Additionally, the incorporation of calcium citrate supplements with vitamin D into various products reflects the growing consumer interest in health and wellness, which could further influence sweetener choices in the future. As the market evolves, we may see a stronger emphasis on health-oriented ingredients such as calcium citrate supplements with vitamin D alongside natural sweeteners.