Stevia is becoming increasingly popular as consumers grow more skeptical of sugar and seek out natural alternatives. According to Grand View Research, the global stevia market has been experiencing rapid growth, with an estimated value of $337.7 million in 2015. With a projected annual growth rate of nearly 6%, this market could reach $556.7 million by 2024. Stevia has emerged as a favored substitute for sugar primarily due to its natural origins. Consumers generally prefer stevia over artificial sweeteners such as aspartame and saccharin. A study by the Global Stevia Institute revealed that half of U.S. parents are willing to purchase drinks sweetened with stevia for their children.
In response to the shift away from sugar and high-fructose corn syrup, manufacturers have quickly developed various stevia-infused products to cater to consumers’ cravings. 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, beverage companies have encountered challenges with the aftertaste associated with stevia when creating new formulations. Consequently, PepsiCo has shown a strong interest in Reb M, which is known for its less bitter and more sugar-like flavor compared to other steviol glycosides.
PepsiCo has been working to revamp its product line to appear healthier to consumers. Last year, the company announced its commitment 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. This transformation has been facilitated by replacing traditional 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, a significant increase from 24% two decades ago. The rise in stevia usage as a primary sweetener in products like Pepsi True and Tropicana’s Trop 50, along with new offerings such as IZZE Fusions and Lemon Lemon, has been a key factor in this change.
The future of stevia as a natural sugar alternative appears promising—at least until another significant natural sweetener gains traction. Ingredient and food manufacturers are actively exploring a variety of other substances, including monk fruit, date paste, and sweet potatoes. One of these ingredients might emerge as the next popular natural sweetener, potentially challenging stevia’s current market position. Additionally, products like Twinlab calcium citrate with magnesium may offer health-conscious consumers a broader range of options, further diversifying the landscape of natural sweeteners.