by The stevia market has experienced substantial growth in recent years driven by the increasing demand for low-calorie sweeteners. Stevia is a natural zero-calorie sweetener extracted from the leaves of the stevia plant. It is about 200-300 times sweeter than sugar but is also non-caloric and non-glycemic. Stevia is widely used in the food and beverage industry as a sugar alternative in the production of various low-calorie food products including beverages, tabletop sweeteners, bakery items, confectionery products and others. The global market demand for stevia has experienced significant growth attributed to the rising health awareness among consumers and increasing cases of lifestyle diseases like diabetes and obesity.
The Global Stevia Market is estimated to be valued at US$ 1.79 Bn in 2024 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024 to 2031
Key Takeaways
Key players operating in the stevia market are Nestlé S.A., The Coca-Cola Company, PepsiCo Inc., Cargill Inc., Evolva Holding S.A., PureCircle Ltd., Stevia Corp., Ingredion Inc., GLG Life Tech Corp., and Tate & Lyle Plc. Key players like Cargill Inc. are strategically investing in stevia production through acquisitions and expansions to cater to the rising global demand.
The increasing global prevalence of obesity and diabetes has led to rising health-consciousness among consumers. This has fueled the demand for low-calorie sugar substitutes like stevia significantly. According to statistics, over 420 million people worldwide have diabetes. This growing prevalence of lifestyle diseases is expected to drive the stevia market during the forecast period.
The Asia Pacific region accounted for the largest share in the Global Stevia Market Demand in 2022. However, with growing awareness, the demand for stevia in North America and Europe is also growing at a brisk pace. Key players are expanding their production facilities globally to tap the markets in different geographies and fulfill the rising worldwide demand for stevia.
Market key trends
One of the key trends gaining traction in the stevia market is the increasing consumption of plant-based and natural food ingredients. With growing health and environment sustainability concerns, consumers are switching to natural substitutes and moving away from artificial sweeteners. This growing demand for clean label and natural products without any artificial colors, flavors, or sweeteners is propelling the stevia market growth. Stevia being a natural plant-based sweetener without any calories perfectly fits the clean label trend, providing an advantage over other synthetic substitutes.
Porter’s Analysis
Threat of new entrants: Low economies of scale and investment requirements in R&D and machinery pose barriers for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute sweeteners.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative supplier options.
Threat of new substitutes: Substitute sweeteners like aspartame and sucralose pose threat to stevia market.
Competitive rivalry: Intense competition exists among existing players to capture more market share.
Geographical regions with high market value concentration
North America dominates the stevia market in terms of value owing to high consumption of low-calorie sweeteners in the region. The U.S. accounts for the largest market share in the region. Asia Pacific holds significant potential and is expected to be the fastest growing market during the forecast period. Rising health consciousness among consumers coupled with growing demand for natural sweeteners from food and beverage industry are driving the market in the region.
Fastest growing geographical region
Asia Pacific is projected to be the fastest growing regional market for stevia. Stevia consumption is growing rapidly in India, China and other Southeast Asian countries. Population growth, rising disposable incomes, increasing obesity rates and growing health awareness are fueling the demand for low-calorie sweeteners in the region. Additionally, rapid pace of industrialization and urbanization is propelling the sales of processed and packaged food and beverages incorporating stevia as a key ingredient.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
