Stevia is gaining traction as consumers increasingly distrust sugar and seek natural alternatives. According to Grand View Research, the global stevia market is experiencing significant growth, with an estimated value of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, this market is expected to reach $556.7 million by 2024. The sweetener has become a favored sugar substitute due to its natural origins. Generally, consumers view stevia more favorably than artificial sweeteners such as aspartame and saccharin. In fact, research from the Global Stevia Institute indicates that half of U.S. parents would purchase beverages sweetened with stevia for their children.
Manufacturers have swiftly introduced various stevia-based products to cater to consumers moving away from sugar and high-fructose corn syrup. In 2015, nearly 35% of total stevia volume was allocated to beverages. Data from Innova Market Insights revealed that 6% of new soda launches last year included stevia as an ingredient. However, soft drink manufacturers have faced challenges with the aftertaste of stevia when developing new formulations. This is why PepsiCo is particularly interested in Reb M, which offers a less bitter and sweeter flavor compared to other steviol glycosides.
PepsiCo has been actively updating its product lineup to appear healthier to consumers. The company announced last year 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. This reformulation effort can be facilitated by substituting sugar and corn syrup with zero-calorie stevia. A spokesperson for the company revealed that low- and no-calorie beverages now account for nearly half of PepsiCo’s sales volume, a significant increase from 24% two decades ago. A major factor in this shift is the heightened use of stevia as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, along with newcomers such as IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative looks promising, at least until the next significant natural sweetener emerges. Ingredient and food manufacturers are continually investigating a range of other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could potentially disrupt stevia’s market position. Furthermore, Bayer calcium may play a role in formulating new products that enhance the appeal of natural sweeteners, including stevia, as consumers look for healthier options. As the market evolves, the competition among natural sweeteners will likely intensify, making it crucial for companies to innovate and adapt.