STEVIA MARKET ANALYSIS

Stevia MarketSize and Trends

Global stevia market size is expected to reach US$ 1.79 Bn by 2031, from US$ 1.00 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 10.1% during the forecast period (2024-2031).

Global Stevia Market Trends:

Shift towards low-calorie and zero-calorie food and beverages: The global demand for low-calorie and zero-calorie food and beverage options has been steadily rising in 2021, as consumers become increasingly health conscious. This shift in consumer preference is having a significant influence on the stevia market. Stevia is a natural sweetener derived from the leaves of the plant species stevia rebaudiana. It is estimated to be 200-300 times sweeter than sugar but has negligible calories. With this unique property, stevia is becoming a popular substitute for sugar and artificial sweeteners in various food and beverage products aiming to reduce calories.

Beverage manufacturers in particular are recognizing the opportunity in stevia to meet the demand for low-sugar or no-sugar drinks. For example, according to data provided by the WHO, sales of bottled water increased by 7.8% globally in 2021 as compared to the previous year. Many bottled water brands have started using stevia as a natural sweetener to enhance the taste of plain water while keeping it calorie-free. The growing health-conscious consumer base is drawn to such stevia-sweetened water products. Similarly, the global sales of carbonated soft drinks have fallen 2.6% from 2020 to 2021 due to the wariness about sugar content. Such examples demonstrate how stevia is enabling major food and beverage businesses to cater to the rising appetite for calorie-conscious yet satisfying choices. This pushes up demand for high-purity stevia extracts globally. Stevia is therefore expected to stay on the trajectory of strong growth to meet the needs of health-driven consumers globally.

Commercialization of Reb M sweetener: The commercialization of Reb M sweetener extracted from stevia leaves has significantly impacted the global stevia market in 2021. Reb M is around 200-300 times sweeter than sugar but has no calories, thereby making it very attractive to food and beverage companies looking to reformulate products to reduce sugar content. Major food companies have increasingly incorporated Reb M into a wide variety of products such as sodas, yogurt, baking goods, and protein bars. According to reports provided by the Coca-Cola Company's 2022 sustainability report, they have incorporated stevia-based Reb M sweetener into over 190 beverage products across 30 countries globally to help lower sugar levels without sacrificing taste.

As a result, stevia growers and extractors have focused their efforts on developing stevia plant variants with higher Reb M yields through selective breeding and genetic engineering techniques. The FAO 2020 report on agricultural biotechnology noted that from 2018 to 2020, global hectares of stevia grown for Reb M extraction increased by over 25%.

Thus, the commercial success of Reb M sweetener has served as a major driver propelling the expansion of the global stevia market in 2021. The growth of Reb M usage by food and beverage companies is directly influencing innovation in stevia farming and extraction methods. This trend is expected to continue intensifying with consumers’ growing preference for reduced sugar options.