Stevia is gaining popularity as consumers grow more skeptical of sugar and seek natural alternatives. According to Grand View Research, the global stevia market is rapidly growing, with an estimated value of $337.7 million in 2015. It is projected to expand at nearly 6% annually, potentially reaching $556.7 million by 2024. The sweetener is favored as a natural substitute for sugar, and consumers generally prefer stevia over artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute found that half of U.S. parents would choose beverages sweetened with stevia for their children.
Manufacturers have quickly introduced various stevia-based products to cater to the cravings of consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of the total stevia volume was used in beverages. Data from Innova Market Insights indicates that 6% of new soda launches last year incorporated stevia as an ingredient. However, soft drink companies are facing challenges with the aftertaste of stevia in their formulations, which is why PepsiCo is particularly interested in Reb M, a variant that has a less bitter and sweeter flavor compared to other steviol glycosides.
PepsiCo has been working on revamping its product lineup to appear healthier to consumers. The company committed to ensuring that by 2025, 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. This reformulation 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 the utilization of stevia as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, along with newcomers IZZE Fusions and Lemon Lemon, has greatly contributed to this shift.
The future of stevia as a natural sugar alternative appears promising — until the next significant natural sweetener emerges to disrupt the market. Ingredient and food manufacturers are actively investigating a variety of other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could potentially become the next favored natural sweetener, challenging stevia’s market position. Interestingly, as the industry evolves, there is also an increasing focus on health-related products, including calcium citrate injection, which is gaining traction among consumers looking for wellness solutions. As the landscape of sweeteners continues to change, the potential for stevia and other natural alternatives remains a dynamic area of interest.