Industry: Food and Beverages
Published Date: December-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 191
Report ID: PMRREP3834
The global stevia market is anticipated to reach a value of US$ 0.5 Bn by 2024. It is predicted to witness a CAGR of 8.1% during the assessment period to reach a size of US$ 0.9 Bn by 2031. The International Diabetes Federation (IDF), in 2022 reported that 537 million adults across the globe are living with diabetes, which is expected to rise to 643 million by 2030. Stevia’s low glycemic index along with its zero-calorie profile makes it ideal for people managing diabetes.
Based on a survey, 64% of consumers across the globe prefer clean-label products with an emphasis on recognizable and natural ingredients. Stevia, being a plant-based sweetener, aligns with the clean-label trend. Organic stevia is therefore projected to expand at a CAGR of 3.3% during the assessment period. This sugar sweeteners integration in clean-label products is expanding, especially in beverages, snack bars, and confectionary.
Key Highlights of the Industry
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Market Attributes |
Key Insights |
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Stevia Market Size (2024E) |
US$ 0.5 Bn |
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Projected Market Value (2031F) |
US$ 0.9 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
8.1% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
7.2% |
Stevia market in Asia Pacific is estimated to hold a market share of 49.4% in 2024. The Internation Diabetes Foundation (IDF), in 2021, reported that 90 million people in India were living with diabetes. 130 million people in China are estimated to have type 2 diabetes. Consequently, promoting a rise in demand for low-calorie and natural substitutes to sugar.
Consumers in the Asia Pacific are shifting away from artificial sweeteners owing to concerns regarding safety and side effects. Almost 70% of consumers in the Asia Pacific prefer natural sweeteners, with 45% choosing stevia as a top choice.
As countries in the region witness an increase in disposable income due to rapid economic growth, they are shifting toward premium and health-conscious products. Several countries in the Asia Pacific have been using traditional sweeteners like honey and palm sugar. This cultural familiarity with natural sweeteners makes stevia more acceptable as a sugar alternative.
Europe stevia market is predicted to showcase a CAGR of 10.1% through 2031. Based on data published by the World Health Organization (WHO), 60% of adults in the European Union are overweight or obese, thereby driving a need for healthy sugar alternatives. Approximately, 50% of consumers in Europe, in 2023, indicated that they were actively decreasing their sugar intake, with this sugar substitute emerging as the fastest growing.
The Soft Drinks Industry Levy of the U.K. has substantially reduced sugar levels in soft drinks and is further encouraging manufacturers to replace sugar with healthy alternatives. The “Nutrition and Health Program” by France encourages food companies to decrease sugar and fat content in processed food, thereby promoting stevia use as a sugar alternative.
The powdered form of stevia accounts for 43.2% market share in 2024 and is highly adaptable, thereby making it suitable for a range of products. It easily dissolves into beverages, thereby making it ideal for teas, coffees, and ready-to-drink beverages. Powdered stevia is economical to produce, package, transport, and store compared to liquid or tablet forms. It also has a significantly long shelf life, thereby making it a preferable choice for manufacturers as well as consumers.
Powder stevia is widely available in several packaging options, thereby making it easy for consumers to measure and use. A study conducted in 2022 revealed that 60% of consumers preferred powdered sweeteners for home use owing to their simplicity and versatility.
Advances in taste-masking technologies along with the development of high-purity glycosides have significantly enhanced stevia’s taste profile, thereby making it suitable for a variety of products. The food and beverage sector to hold a share of 37.4% in 2024. The plant-based origin of this sugar substitute appeals to consumers seeking natural and non-artificial ingredients in their food and drinks. 75% of consumers expressed a preference for natural sweeteners over artificial ones in their food products in 2023.
Starbucks integrated stevia-based sweeteners in its offering, including stevia-sweetened syrups for beverages like Cold Brew with Sweet Cream. The food and beverage giant’s adoption of this sugar substitute aligns with its sustainability goals while catering to calorie-conscious consumers. Around 25% of its beverage innovations in 2023 featured reduced or zero sugar content.
Stevia is predicted to witness increased adoption in plant-based dairy alternatives and functional foods during the forecast period. Sugar substitute blends with other natural sweeteners like monk fruit and allulose are likely to gain popularity for enhanced taste and functionality.
Continuous research and development activities in the market are likely to focus on fermentation-derived stevia and enzyme-modified glycosides to decrease bitterness while improving scalability. Products containing Reb M and Reb D accounted for 25% of new stevia launched in 2023. Consumers are posing a demand for eco-friendly production practices.
The stevia market growth witnessed a robust CAGR of 7.2% during the historical period. Rising health awareness owing to the spike in obesity and diabetes across the world prompted consumers to seek healthy sugar alternatives. Governments across the globe are introducing sugar taxes and regulatory measures to curb sugar consumption. For instance,
Mexico’s sugar tax resulted in a 7.6% reduction in sugary drink sales between 2020 and 2022, thereby boosting the demand for stevia-sweetened beverages. Stevia was progressively adopted across industries including beverages, dairy alternatives, baked goods, and confectionery. The beverage sector alone accounted for 40% of stevia’s global consumption in 2023.
Novel Dietary Trends to Pose a Demand for Organic Sugar Alternatives
A study by the International Food Information Council (IFIC) in 2023 revealed that 74% of consumers in the U.S. are actively trying to limit their sugar intake or totally avoid sugar. This trend is highly driven by the awareness regarding the adverse effects of excessive sugar consumption. The demand for sugar-free products is predicted to grow, thereby reflecting a strong consumer interest in healthy alternatives.
The ketogenic diet emphasizing low carbohydrate intake is practiced by million worldwide. The Global Nutrition Report in 2022 highlighted that 35% of adults in the U.S have tried a low-carb diet like keto at some point.
Stevia is keto-friendly as it does not impact blood sugar or insulin levels, thereby making it a preferred sweetener for this demographic. Being a plant-derived product, stevia appeals to vegetarians, vegans, and flexitarians looking for clean-label and plant-based alternatives.
Fair Trade and Organic Certifications to Boost Consumer Trust
Almost 73% of global consumers are willing to change their consumption habits to decrease environmental impact, while 57% are influenced by the product’s sustainability credentials while making purchasing decisions.
Organic sweeteners are therefore witnessing a rising demand as consumers seek clean and pesticide free products. Fair trade certifications ensure that farmers and workers in the industry receive fair compensation while operating under ethical working conditions.
Organic certifications ensure that stevia is cultivated without synthetic pesticides, fertilizers, or genetically modified organisms (GMO). Stringent organic certification standards like USDA Organic and EU Organic provide transparency and credibility, thereby improving marketability.
Taste and Aftertaste Issues to Restrain Expansion
Steviol glycosides, compounds responsible for stevia’s sweetness can activate bitter taste receptors on the tongue, resulting in a perceptible bitter or licorice-like taste. Tough stevia is 200 to 350 times butter than sugar, the high intensity can make its sweetness feel less natural and difficult to balance in formulations.
A survey conducted in 2023 revealed that 35% of consumers who tested stevia-sweetened products expressed dissatisfaction owing to its aftertaste.
According to a Food and Beverage Innovation Study, 40% of respondents indicated aftertaste was the primary reason for preferring sugar or other sweeteners over stevia. Companies like Taste & Lyle and Cargill are using fermentation to produce Reb M at scale, thereby decreasing bitterness and aftertaste. Products formulated with Reb M, in 2022, experienced 15% higher acceptance rate among consumers compared to those using Reb A.
Advanced Extraction Techniques to Assist in Reducing Production Costs
Conventional extraction methods involving water extraction followed by alcohol precipitation usually result in lower yields and higher operational costs. The use of advanced stevia extraction methods enhances glycoside recovery rates, thereby ensuring higher sweetness intensity and better consistency. Modern techniques isolate high-purity compounds like Rebaudioside A (Reb A) and Rebaudioside M (Reb M), that have superior taste profiles and minimal aftertaste compared to raw stevia extracts.
Based on a study conducted in 2022, 70% of consumers showed interest in stevia-sweetened products when the taste closely matches sugar. Leading brands like Cargill and DSM have significantly heavily invested in fermentation technology with Cargill’s EverSweet achieving superior commercial success. Adoption of modern techniques can lower the production costs of this sugar substitute by 40%, thereby making it competitive with synthetic sweeteners.
Collaboration with Leading Food and Beverage Companies to Promote Product Diversification
By collaborating with prominent brands, stevia producers gain access to extensive research and development facilities, distribution networks, and marketing expertise. These collaborations also assist in developing tailored stevia-based solutions. Coca-Cola partnered with PureCircle to develop stevia-sweetened products like Coca-Cola Life and Sprite Zero, thereby aligning with global health trends.
PepsiCo partnered with Cargill to incorporate EverSweet in its beverages including Pepsi Zero Sugar and Gatorade Zero. The company reported a 9% y-o-y growth in the sales of its reduced-sugar beverages in 2023 that were fueled by innovations in stevia-based formulations.
Nestlé partnered with multiple stevia suppliers to decrease sugar in products like Nestlé Milo and its range of confectionery items. Nestlé in 2021, introduced 30%-reduced sugar KitKat in Japan, sweetened with stevia. Companies like Hershey’s and Mondelez are working with stevia producers to launch sugar-free and reduce-sugar chocolate and candy.
Companies in the stevia market are consistently innovating by creating new stevia-based products with an emphasis on enhancing taste profiles and product formats. A few businesses are combining stevia with other natural sweeteners to balance sweetness and enhance tastes.
Brand are emphasising health benefits of stevia like low glycemic index, calorie-free nature, and suitability for people having diabetes. Stevia producing brands are forming strategic alliances with prominent food and beverage brands to integrate stevia in mainstream products. This assists in increasing distribution reach as well as consumer adoption. Businesses are investing in advanced extraction methods to decrease the production costs of high-quality stevia extracts.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
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The market is predicted to reach a value of US$ 0.9 Bn by 2031.
The People’s Republic of China is the world’ largest producer of stevia products for the beverage and food industries.
Asia Pacific is the largest consumer of stevia across the globe.
Tate & Lyle, Ingredion Incorporated, Cargill, Incorporated, and PureCircle are the prominent companies in the market.
The market is predicted to witness a CAGR of 8.1% through 2031.
