Stevia is gaining traction as consumer skepticism towards sugar and interest in natural alternatives increases. According to Grand View Research, the global stevia market is experiencing rapid growth, estimated to be worth $337.7 million in 2015. With an annual growth rate projected at nearly 6%, the market could reach $556.7 million by 2024. The sweetener has emerged as a favored sugar substitute due to its natural origins. Consumers generally view stevia more favorably than artificial sweeteners like aspartame and saccharin. In fact, the Global Stevia Institute reported that half of U.S. parents are inclined to purchase beverages for their children that are sweetened with stevia.
Manufacturers have quickly introduced a variety of stevia-based products to cater to consumers moving away from sugar and high-fructose corn syrup. In 2015, approximately 35% of total stevia volume was utilized 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 new formulations. This is why PepsiCo is particularly interested in Reb M, which has a less bitter and more sugary flavor profile compared to other steviol glycosides.
PepsiCo has been working on revamping its product portfolio to align with consumer preferences for healthier options. Last year, the company committed to ensuring that by 2025, at least two-thirds of its global beverage volume will consist of drinks containing 100 calories or fewer from added sugar per 12-ounce serving. These reformulations are achievable by substituting sugar and corn syrup with zero-calorie stevia. A company representative informed Food Dive that low- and no-calorie beverages now account for nearly half of PepsiCo’s sales volume, up from 24% two decades ago. A significant factor in this growth is the increased adoption of stevia as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, along with newer offerings such as IZZE Fusions and Lemon Lemon.
The future of stevia as a natural sugar alternative is indeed promising—until the next significant natural sweetener gains traction. Ingredient and food manufacturers are continuously investigating a range of other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients could emerge as the next popular natural sweetener, potentially challenging stevia’s current market position. Additionally, products that combine stevia with beneficial components, such as petite calcium with vitamin D, may further enhance their appeal to health-conscious consumers. As the market evolves, the integration of stevia with ingredients like petite calcium with vitamin D could lead to innovative offerings that better meet consumer demands.