Stevia Market - Forecasts from 2024 to 2029

Stevia Market - Forecasts from 2024 to 2029

The stevia market is expected to grow at a CAGR of 10.85% over the forecast period reaching a total market size of US$1,534.502 million by 2029, increasing from US$746.271 million in 2022.

Stevia, a natural sweetener derived from the Stevia rebaudiana plant, is increasingly gaining prominence across the healthcare and food and beverage industries. This surge in demand is fueled by various factors, including the growing preference among consumers for natural sugar alternatives and the substantial research and development investments made by major corporations.

One of the primary drivers propelling the global stevia market is the rising awareness among consumers regarding the adverse health effects associated with excessive sugar consumption, such as obesity and diabetes. Consequently, there's a mounting demand for healthier sugar substitutes, with stevia emerging as an ideal choice due to its natural origin and zero-calorie nature.

To address this growing demand for healthier options, numerous food and beverage companies are revamping their product formulations to reduce sugar content. Stevia's innate properties enable it to serve as a natural sweetening agent, facilitating the creation of lower-calorie alternatives without compromising taste quality, as observed with some artificial sweeteners. As a result, stevia is gaining traction as a safe and natural sweetening solution, garnering widespread acceptance among both consumers and manufacturers.

Furthermore, advancements in stevia product innovation are enhancing its palatability and cost-effectiveness, thereby expanding its application across a broader spectrum of food and beverage products. However, despite its myriad benefits, the market growth of stevia may face some constraints in the foreseeable future.

The availability of alternative low-calorie sweeteners poses a potential challenge to its market expansion. Additionally, the bitter aftertaste associated with stevia has been a longstanding concern for manufacturers, prompting ongoing efforts to develop solutions that mitigate this bitterness effectively.

In essence, the global stevia market is witnessing robust growth driven by increased consumer preference for natural and healthier sweetening options. As companies continue to invest in research and development to overcome existing challenges and enhance product offerings, stevia is poised to maintain its position as a key player in the evolving landscape of sugar alternatives.

Market Drivers

Rising cases of Diabetes cases globally

There has been a noticeable rise in diabetes cases over recent years, leading to elevated sugar levels in the body and an increased risk of conditions like obesity, heart disease, and diabetes among the populace. According to the Centers for Disease Control, over 1 in 3 adults, approximately 98 million Americans, have prediabetes, with 81% of them unaware of their condition. To counteract the risks associated with these diseases, individuals are becoming more health-conscious and gravitating towards low-calorie sugar substitutes, including natural sweeteners like stevia.
Adoption in the dairy industry

Today, stevia is considered a valuable ingredient as it reduces sugar use in the dairy industry. Its important benefits include stability and flexibility of use in a wide variety of dairy categories, such as yogurt, flavored milk, and ice cream.
Concerns about artificial sweeteners

Concerns surrounding artificial sweeteners have arisen due to their potential health implications. Some artificial sweeteners have been associated with health issues. In May 2023, the World Health Organization (WHO) introduced a new guideline regarding non-sugar sweeteners (NSS), advising against their use for weight management or mitigating the risk of noncommunicable diseases (NCDs).

This recommendation stems from a comprehensive analysis of available evidence indicating that the use of NSS does not yield long-term benefits in reducing body fat among both adults and children. Additionally, the review findings suggest possible adverse effects associated with prolonged NSS consumption, including an elevated risk of type 2 diabetes, cardiovascular diseases, and mortality in adults. In light of these concerns, consumers are increasingly turning to natural alternatives such as stevia.
Concerns about artificial sweeteners

There is a growing awareness among individuals about the health risks associated with excessive sugar consumption, particularly about conditions like obesity. In 2022, statistics indicated that globally, one in eight people were grappling with obesity, while a staggering 2.5 billion adults aged 18 and above were classified as overweight, with 890 million among them suffering from obesity.

Stevia's allure lies in its nearly negligible calorie content. For those navigating the challenges of obesity or striving for weight management, the quest to reduce sugar intake is paramount. Stevia emerges as a natural substitute for traditional table sugar, providing a guilt-free option for indulging in sweetness without the accompanying calorie load.

Market Restraint
Price fluctuations

The price of stevia leaves is subject to substantial fluctuations influenced by various factors, including weather patterns, crop yields, and trade regulations. Such volatility poses challenges for food and beverage companies in budgeting for stevia procurement, potentially dissuading their adoption of the sweetener.

Stevia market segmentation by type into leaves, liquid extract, and powder

Segmenting the stevia market based on product types yields three primary categories: Stevia Leaves, Liquid Extract, and Powder. Stevia Leaves, renowned for their historical use in herbal medicine, offer versatility as they can be brewed into teas or incorporated as a natural sweetener in cooking.

Liquid Extract, typically packaged in convenient dropper bottles, provides a concentrated form of sweetness, ideal for adding to beverages or recipes.

Meanwhile, Stevia Powder, used for its adaptability, serves a wide array of culinary purposes, including baking, cooking, and enhancing the flavor of beverages.

North America is anticipated to hold a significant share of the stevia market.

The North American market is expected to hold a significant market share owing to the presence of major players, coupled with the growing number of product launches in countries like Canada and the United States.

In addition, a growing number of health-conscious populations coupled with changing lifestyles are the factors boosting the demand for the product, and with the growing demand for food and beverage products made from natural ingredients, the demand for stevia in the region is further expected to increase over the forecast period.

Market Developments
March 2023- Splenda® Stevia Farm announced the official commencement of its fully integrated US-based stevia farm, heralding the establishment of a burgeoning American industry. Located in Central Florida, the farm was fully operational. The farm's agricultural endeavors enabled Splenda to domestically produce the finest-tasting Splenda Stevia products and other Splenda-sweetened foods and beverages.
July 2023- HOWTIAN introduced SoPure™ Galaxy, marking a significant leap in the realm of stevia for dairy applications. The Galaxy-Series represented a pioneering range of stevia products tailored to elevate dairy applications, aligning with the escalating consumer preference for healthier and more natural dairy options.

Market Segmentation
By Type
Leaves
Liquid Extract
Powder
By Application
Beverages
Bakery and Confectionery
Tabletop Sweeteners
Dairy
Others
By Distribution Channel
Online
Offline
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
UK
Spain
Italy
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Taiwan
Thailand
Others