Stevia Market Expected to Surpass US$ 978 Mn by 2031 - Persistence Market Research

The global stevia market is poised for substantial growth, with projections indicating a market valuation of US$ 528 million by 2024, expanding at a CAGR of 8.1% to reach US$ 978 million by 2031. Increasing consumer preference for natural and clean-label sweeteners, coupled with regulatory policies supporting sugar reduction, is fueling demand for stevia worldwide.

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Stevia's Role in the Rising Health-Conscious Consumer Market

The International Diabetes Federation (IDF) reported in 2022 that 537 million adults globally are living with diabetes, a number expected to rise to 643 million by 2030. Given its low glycemic index and zero-calorie profile, stevia has emerged as a preferred sugar alternative, particularly among diabetic and health-conscious consumers.
A global survey revealed that 64% of consumers prefer clean-label products with recognizable and natural ingredients. Stevia aligns perfectly with this trend, leading to a projected 3.3% CAGR for organic stevia during the forecast period. This shift is particularly prominent in beverages, snack bars, and confectionery products, where stevia's presence is expanding significantly.

Key Market Trends and Developments

• Advances in flavor masking, stevia blends, and glycoside production are enhancing product appeal.
• Growing consumer awareness and economic growth in developing regions present untapped opportunities.
• Companies focusing on eco-friendly production and transparent supply chains are gaining a competitive edge.
• Regulatory policies promoting sugar reduction continue to drive market expansion.
• Stevia-based product launches are anticipated to grow at an annual rate of 20% during the forecast period.
• The powdered stevia segment is set to hold 43.2% of the market share in 2024 due to its ease of use and availability.
• The food and beverage industry will account for 37.4% of the market share in 2024 as brands increasingly integrate stevia into their products.

Regional Insights: Asia Pacific and Europe Leading Market Growth

Asia Pacific: Largest Market Share
The Asia Pacific region is projected to hold 49.4% of the market share in 2024, driven by rising disposable incomes and increasing health awareness.
• The IDF (2021) estimated that 90 million people in India and 130 million in China have type 2 diabetes, fueling demand for low-calorie sweeteners.
• 70% of consumers in Asia Pacific prefer natural sweeteners, with 45% choosing stevia as their top option.
• Traditional sweeteners like honey and palm sugar have long been accepted in the region, making the transition to stevia easier.
Europe: Strong Growth with Supportive Regulations
Europe's stevia market is set to register a CAGR of 10.1% through 2031. According to the World Health Organization (WHO), 60% of adults in the EU are overweight or obese, leading to increasing demand for healthy sugar alternatives.
• In 2023, 50% of European consumers actively reduced sugar intake, making stevia the fastest-growing sugar substitute.
• The Soft Drinks Industry Levy in the UK has significantly reduced sugar in beverages, promoting stevia's adoption.
• France's Nutrition and Health Program encourages food manufacturers to cut sugar and fat, creating more opportunities for stevia-based products.

Product Preferences: Powdered Stevia Gains Popularity

Stevia in powder form is expected to dominate the market, accounting for 43.2% of total sales in 2024 due to its adaptability across various food and beverage applications.
• Easily dissolves in teas, coffees, and ready-to-drink beverages.
• More economical to produce, package, and store than liquid or tablet forms.
• Long shelf life makes it the preferred option for both manufacturers and consumers.
A 2022 study found that 60% of consumers prefer powdered sweeteners due to their simplicity and versatility.

Food and Beverage Giants Embrace Stevia

The food and beverage sector is projected to hold a 37.4% share of the stevia market in 2024, as leading brands integrate natural sweeteners into their products.
• 75% of consumers preferred natural sweeteners over artificial ones in 2023.
• Starbucks has introduced stevia-based syrups for beverages such as Cold Brew with Sweet Cream.
• 25% of Starbucks' beverage innovations in 2023 featured reduced or zero sugar content.

Market Growth Drivers and Opportunities

• Rising consumer demand for sugar-free and sugar-friendly diets is boosting stevia consumption.
• Fair trade and organic certifications are enhancing consumer trust.
• Advanced extraction techniques are improving yield and reducing production costs.
• Strategic collaborations with food and beverage giants are expanding stevia's market reach.

Challenges: Overcoming Aftertaste Issues

One challenge for the stevia market is its bitter aftertaste, which has affected its mass adoption. Studies show that 35% of consumers who tested stevia-sweetened products were dissatisfied with the aftertaste. However, innovations in fermentation-derived glycosides are addressing this concern:
• 40% of consumers prefer traditional sugar due to stevia's aftertaste.
• Companies like Tate & Lyle and Cargill are developing Reb M, a variant of stevia with minimal bitterness.
• Reb M formulations saw a 15% higher acceptance rate in 2022 compared to standard stevia formulations.

Industry Collaborations and Innovations

Leading brands are partnering with stevia producers to develop new products:
• Coca-Cola and PureCircle collaborated to create Coca-Cola Life and Sprite Zero.
• PepsiCo and Cargill developed Pepsi Zero Sugar and Gatorade Zero.
• Nestlé introduced 30%-reduced sugar KitKat in Japan, sweetened with stevia.
• Hershey's and Mondelez are expanding their sugar-free chocolate offerings using stevia.

Market Segmentation

By Nature
• Organic
• Conventional
By Form
• Powder
• Liquid
• Dried Leaves
By End Use
• Food & Beverage
o Bakery & Confectionery
o Dairy Products
o Beverages
o Others
• Dietary Supplements
• Household/Retail
• Others
By Distribution Channel
• Business to Business (B2B)
• Business to Consumer (B2C)
o Hypermarkets/Supermarkets
o Convenience Stores
o Online Retail
o Others
By Region
• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East & Africa

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