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 its estimated size reaching $337.7 million in 2015. With an anticipated annual growth rate of nearly 6%, the market could expand to $556.7 million by 2024. This natural sweetener has become a favored substitute for sugar due to its organic origin. Consumers tend to hold a more favorable opinion of stevia compared to artificial sweeteners like aspartame and saccharin. Notably, a study by the Global Stevia Institute revealed that half of U.S. parents would opt for beverages sweetened with stevia for their children.
In response to the shift away from sugar and high-fructose corn syrup, manufacturers have swiftly developed a variety of stevia-based products to satisfy consumer cravings. In 2015, approximately 35% of the total stevia volume was allocated to beverages. Data from Innova Market Insights indicates that 6% of new soda launches in the previous year incorporated stevia as an ingredient. However, soft drink companies have faced challenges with the aftertaste associated with stevia while formulating new products. This is why PepsiCo is particularly interested in Reb M, which has a less bitter flavor and a sweeter taste compared to other steviol glycosides.
PepsiCo has been actively redesigning its product lineup to appear healthier to consumers. Last year, the company committed to ensuring that by 2025, at least two-thirds of its global beverage volume will consist of drinks with 100 calories or fewer from added sugar per 12-ounce serving. 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. This growth is largely attributed to the increased use of stevia as a primary sweetener in products like Pepsi True, Tropicana’s Trop 50, and newer offerings such as IZZE Fusions and Lemon Lemon.
The outlook for stevia as a natural alternative to sugar appears promising, especially considering its positive natural factors such as calcium content. However, the potential emergence of the next big natural sweetener could disrupt stevia’s current market position. Ingredient and food manufacturers are exploring a range of other options—such as monk fruit, date paste, and sweet potatoes. Any of these ingredients could emerge as the next popular natural sweetener, impacting stevia’s dominance in the marketplace.