HEYLO’s developers and marketers aim to capture a slice of the projected $16 billion to $20 billion sugar-alternative market, but they encounter significant competition. To outshine pure stevia, which currently dominates the market, the new product must deliver impressive results. According to Mintel, as of August 2017, stevia was present in over a quarter (27%) of new products launched utilizing high-intensity sweeteners in the previous year. The leading categories for new product launches featuring stevia included snacks, carbonated soft drinks, dairy, juice drinks, and other beverages.
The increasing use of stevia across a variety of products can be attributed to its high-intensity sweetness and ease of sourcing. Companies like Pyure and Apura Ingredients, which supply a range of sweetener options, have rapidly introduced diverse stevia-based products as consumer preferences shift away from sugar. This growing aversion to sugar is prompting food manufacturers, both large and small, to incorporate stevia to lower sugar content without sacrificing taste or mouthfeel. Major brands such as PepsiCo, Coca-Cola, DanoneWave, Kraft Heinz, Nestlé, and Unilever have played a pivotal role in transitioning stevia from a niche ingredient to a mainstream choice. For example, Coca-Cola has developed a stevia-sweetened soda that boasts no sugar, zero calories, and eliminates the aftertaste found in many stevia-containing products. This new beverage is set to launch in a limited market outside the U.S. in the first half of this year.
Stevia possesses two key advantages: it is naturally 30 to 40 times sweeter than sugar and contains zero calories. This natural sweetness allows brands to use significantly less of the ingredient. Additionally, stevia is relatively simple to cultivate and can be grown in various environments. Unlike previously popular artificial sweeteners like aspartame, stevia is entirely natural, aligning with consumer demand for clean labels. These qualities have propelled pure stevia ahead of competitors like monk fruit, agave, and honey. However, HEYLO has a unique edge—its product comes in different varieties. It will be offered as an organic brown sugar substitute, a natural white sugar alternative, and in liquid form. Jeremy Cage, HEYLO’s chief marketing officer, informed Food Navigator that the company is collaborating with partners to develop applications ranging from calcium citrate cheese sauce to nut butters, salad dressings, cookies, ice cream, yogurt, non-carbonated and lightly carbonated beverages, jam, chocolate, chocolate milk, and flavored water.
Cage noted that stevia often contains bulking agents such as erythritol, maltodextrin, dextrose, and sugar alcohols like maltitol and sorbitol, which can replace sugar in applications requiring bulk or body. These carriers typically constitute 80% to 90% of the product and can negatively affect digestion and taste. However, HEYLO’s inclusion of acacia fiber helps mitigate off-flavors, yielding a cleaner taste.
At first glance, HEYLO appears to have a bright future, but it is still in the early stages and must fulfill various commitments, including providing a clean taste. Additionally, the product needs to be cost-effective and compatible with ingredient lists of numerous food products. If it alters texture or incurs high costs, HEYLO risks joining the ranks of other promising sweetener alternatives that failed to succeed.
It remains uncertain whether consumers will embrace a new sweetener or continue to seek more natural and authentically-sounding ingredients. One thing is clear: the demand for natural sweetener solutions is mainstream, not niche, and there is potential for substantial profit for the successful contender.