Global Stevia Dairy Products Market - 2022-2029

Global Stevia Dairy Products Market - 2022-2029

Market Overview

Stevia is a shrub made from stevia rebaudiana plant leaves. It is considered a partial replacement for sugar and has no calories. It is an effective ingredient in many dairy products and has numerous health advantages. The high sugar content is a constant problem for the dairy industry. To solve this, different dairy products have been combined with stevia, which has increased sales due to the low sugar content. Stevia's market penetration has been facilitated by the food standards' approval of its consumption. Urbanization has increased the demand for organic goods and fueled the demand for stevia dairy products. It is a suitable sweetening substitute because it contains no calories.

The global stevia dairy products market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of 8.9% during the forecast period (2022-2029).

Market Dynamics: An increase in the demand for natural sweeteners fuels market expansion

Natural sweeteners are frequently used in food formulations when replacing sugar in food products. One of the most important natural sweeteners is stevia, which can be used in various foods, including dairy, bakery, confections, beverages, and other functional foods. Stevia has a distinct flavor profile and a sweetness intensity 200–350 times higher than regular sugar. A large population has shifted toward low-calorie and nutritious foods and increased their intake of natural ingredients due to rising cardiovascular disease, stroke, obesity, type 2 diabetes, and health consciousness rates. As a result, the demand for natural sweeteners has increased due to consumers' preference for organic goods.

On the other hand, in the food and beverage industry, new products are being introduced more frequently. There is a greater need to do so because of the demand for sugar substitutes among customers with diabetes and obesity. Additionally, stevia extracts with more agreeable flavor profiles will gain popularity as more efficient methods are developed.

Market Segmentation: The yoghurt segment accounted for the highest share of the global stevia dairy products market

Yogurt held the majority of the market share in the market for dairy products containing stevia. Yogurt is in high demand from consumers because it checks off the boxes for essential nutrients and a healthy lifestyle, such as being low in calories, having lower fat content, and being able to prolong satiety. Stevia's incorporation of such necessities also enables significant product innovation. According to a sensory study, stevia (rebaudiana A) can easily replace about 50% of the sugars in strawberry-flavored yogurt without affecting the taste. According to a Kerry Group study, yogurt's nutrient profile is abundant in proteins, and consumers are willing to pay an additional 10% to 15% for products that are marketed as being ""fortified with proteins.""

On the other hand, due to pandemic, online retail channels increased throughout the year. People have begun adjusting to the new normal, in which activities like working from home and attending college from home are commonplace. Furthermore, recent surveys from Chicory's Third Annual Grocery Usership found that online retailers are preferred over brick-and-mortar ones. According to survey respondents, 72% made necessary grocery purchases online in the previous 90 days, and 52% claimed to order groceries online at least once weekly.

Geographical Penetration: North America is dominating region during the forecast period

During the forecast period, North America held the largest market share. The region is gravitating toward products free of processed sugars or sugar-free as it has become increasingly conscious of its eating habits. According to the CDC, approximately 11.4% of Americans have diabetes, and a much higher percentage is at risk of developing type 1 diabetes. Although some consumers still favor ice cream and flavored beverages with high sucrose content, product manufacturers are positioning products on the market that can partially replace sucrose with stevia.

On the other hand, Asia-Pacific is anticipated to present lucrative growth opportunities. The alternative market would expand due to product innovations, spectacular demand, and production from countries like China and India. Additionally, the region contains nations that are prone to different CVDs, which would encourage them to consume dairy products sweetened with stevia.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players are Cargill Inc., WhiteWave Foods, Arla, Wisdom Natural Brands, Lily's Sweets, Purecircle, KourellasDair, Oikos, SunshineDairy Foods and Cavalier. To maintain their position in the market, businesses are increasing their marketing and R&D expenditures and broadening their distribution networks. Additionally, they are implementing competitive strategies by increasing their investment in product development to meet the tastes and preferences of the new generation of consumers. The businesses use a variety of corporate strategies, including partnerships, mergers, and acquisitions, in addition to a strong product portfolio, to break into the stevia dairy products market. For instance, on 16th July 2021, Nascent Health Sciences LLC received a “no questions” letter from FDA in response to a Generally Recognized as Safe (GRAS) notification submitted for the company’s SoPure stevia ingredients. The news about the GRAS notification (GRN 983) was reported by GRAS Associates, a subsidiary of Nutrasource Pharmaceutical and Nutraceutical Services (Guelph, ON, Canada). GRAS Associates compiled and submitted the GRAS Notice to FDA on behalf of Nascent Health Sciences.

COVID-19 Impact: Negative impact on the global stevia dairy products market

The COVID-19 pandemic hurt the production of many products, harming the world economy. Covid-19 has impacted the global market cap in 2020 and early 2021. The global spread of the coronavirus has prompted many nations to implement lockdown measures in an effort to protect public health. Except for the food and medical industries or other sectors, all business and production operations have been completely shut down, which is causing an economic crisis in the nation. Manufacturing and production functions have been suspended, which has slowed down business. Inactive trade and transportation have completely disrupted the supply chain, and as a result, companies suffered significant losses. So, the stevia dairy products market also saw a decrease in sales.

The global stevia dairy products market report would provide an access to approximately 43 market data tables, 53 figures and 96 pages