The stevia market is projected to grow at a CAGR of 9.5% from 2017, reaching a value of USD 771.5 million by 2022. The market growth is driven by the increase in the customer demand for natural sugar alternatives, zero calorie beverages, and healthier foods incorporating natural sugar substitutes. The market is also driven by factors such as the positive outlook for stevia as a natural sweetener and increasing number of innovative product developments for stevia and stevia-based products that are cost-effective and find application in a wide range of food & beverage applications.
Increasing consumer demand for natural sugar substitutes widens the growth
prospects for manufacturers in the global
Stevia is a natural,
zero-calorie, high-intensity sweetener obtained from the stevia plant. It is
becoming one of the most preferred natural alternatives to sugar due to its several
benefits, namely, low-glycemic index, safe for diabetics, zero calories, and smaller
land required for cultivation as compared to sugar. The global stevia market is
largely dependent on the sugar market as the changes in the consumption of
sugar owing to rising health concerns present opportunities for natural
sweeteners. Stevia is an emerging market with several new entrants.
The stevia plant is
indigenous to the rainforests of Paraguay and Brazil. The countries that hold
the topmost positions in stevia leaf production are China and Paraguay, along
with several other countries such as Kenya and the US, which are expanding
their production to take advantage of emerging markets, particularly Europe.
Globally, the majority of global commercial stevia production occurs in Asia Pacific,
mainly China, due to highly favorable growing conditions and cheaper labor
costs.
The increasing
awareness about the health benefits of low-calorie consumable products is the
major attributing factor for the exploration of alternative sweeteners such as
stevia by manufacturers. The immense popularity of stevia as a sugar substitute
has resulted in an increase in the number of new products in all regions
worldwide. In the last five years, more than 9,000 stevia-based products were
launched with more than 75% only in the last three years. These factors fuel the
demand for stevia in the food & beverage industry.
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Approval regarding the use of stevia in food & beverages has led to a surge of new product innovations in many countries to capitalize on consumer demand, thereby fueling the growth of the beverage segment
Alternative sweeteners
such as stevia are essential as they provide and expand beverage choices to
control caloric, carbohydrate, or specific sugar intake. In case of beverages,
stevia is the most preferred option as the bulking properties provided by sugar
are not required. It is one of the most common natural sweeteners used for zero-
or low-calorie beverages. Stevia is mostly used in beverages such as diet-carbonated
drinks, flavored water, soft drinks, fruit juices, ready-to-drink beverages,
and sports & energy drinks. Zevia, Sprite, Sobe Life Water, Hartwall, Del
Monte, Pepsi, and Coca-Cola are some of the common brands that use stevia as a
sweetener in their products. Furthermore, the approval for the use of stevia in
food & beverages has increased the number of product innovations in many
countries. Due to this, the beverages segment dominated the stevia market.
The stevia market is fragmented and competitive, with a large number of players operating at regional and local levels. The key players in the market adopted strategies such as acquisitions & mergers, new product developments, and expansion & investments. Prominent players profiled in the report include Cargill (US), Ingredion Inc. (US), PureCircle Ltd. (Malaysia), and Tate & Lyle PLC (UK).
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Geographical Prominence
The Asia Pacific region
dominated the stevia market and is also projected to grow at the highest rate
during the forecast period. This growth can be attributed to the growing market
for beverages & snacks and an increase in the cultivation of stevia plants
in countries such as China, India, and Malaysia. Factors such as the support
extended by the governments of individual countries for the development of
stevia and increased agricultural land availability for production have fueled
the growth of this market. The rising awareness about diabetes and obesity in
the Asia Pacific region drives the preference for natural sweeteners, such as
stevia, over artificial sweeteners such as aspartame, saccharin, and sucralose.
Natural sweeteners have gained more ground because of their natural origin and
simple extraction process. According to the World Health Organization (WHO),
stevia will replace 20%–30% of all dietary sweeteners in the future.
Stevia is a plant
native to South America, whose leaf extracts are naturally sweet and are used
to sweeten food & beverages. Commercially, stevia is a white powder
composed of one or more intensely sweet glycosides derived from the leaves of
stevia and finds use as a non-caloric sweetener. It has its unique taste
profile and sweetness intensity, which is approximately 200 to 350 times
greater than regular sugar. Many food & beverage companies use stevia to
create products with enhanced taste and fewer total calories. Cargill (US),
Ingredion Incorporated (US), and PureCircle Ltd. (Malaysia) are the major
players in the stevia market. These players primarily focus on acquiring a leading
market position through the provision of a broad portfolio, catering to the
varied requirements of the market, along with a focus on the diverse end-user
segments. They are also focused on innovation and are geographically
diversified.
