Stevia is gaining traction as consumers increasingly distrust sugar and seek natural alternatives. According to Grand View Research, the global stevia market is experiencing rapid growth, with an estimated value of $337.7 million in 2015. With an anticipated annual growth rate of nearly 6%, the market could reach approximately $556.7 million by 2024. This sweetener is favored as a natural substitute for sugar, as consumers tend to have a more favorable perception of stevia compared to artificial sweeteners like aspartame and saccharin. A survey by the Global Stevia Institute revealed that half of U.S. parents are inclined to purchase beverages sweetened with stevia for their children.
Manufacturers have swiftly responded by developing a variety of stevia-based products to cater to consumers who are moving away from sugar and high-fructose corn syrup. In fact, around 35% of the total stevia volume in 2015 was dedicated to beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies face challenges with stevia’s aftertaste while creating new formulations. This is why PepsiCo is focusing on Reb M, which offers a less bitter and more sugary flavor compared to other steviol glycosides.
PepsiCo has been working on refreshing its product lineup to appear healthier to consumers for some time. The company announced that by 2025, at least two-thirds of its global beverage volume will consist of drinks with 100 calories or fewer from added sugars per 12-ounce serving. Such reformulations are feasible through the substitution of sugar and corn syrup with zero-calorie stevia. A spokesperson for the company mentioned to Food Dive that low- and no-calorie beverages now make up nearly half of PepsiCo’s sales volume, a significant increase from 24% two decades ago. A notable factor in this shift is the rising incorporation of stevia as a primary sweetener in products like Pepsi True, Tropicana’s Trop 50, as well as newer entries such as IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative appears bright, at least until another significant natural sweetener emerges to challenge its status. Ingredient and food manufacturers are actively investigating various alternatives, including monk fruit, date paste, and sweet potatoes. One of these could potentially become the next popular natural sweetener, impacting stevia’s market position. Meanwhile, consumers dealing with heartburn might also find that products containing stevia, especially those with added calcium citrate, could provide a more soothing option compared to traditional sugary drinks. In summary, while stevia is well-positioned in the market now, the exploration of other natural sweeteners could reshape the landscape in the future.