Stevia Market: Current Analysis and Forecast (2023-2030)

Stevia is a plant-based sweetener, sweeter than sugar but has zero calories. In addition to its use as a sweetener in food and beverage products, it is also used in personal care products as a natural, low-calorie alternative to sugar-based ingredients. Research has shown that stevia may have potential health benefits, such as reducing blood pressure and improving insulin sensitivity. The frequency of obesity, diabetes, and other similar diseases has forced the government to take initiatives toward health, which are the key factors driving market growth during the forecasted period. In 2021, as per World Health Organisation (WHO), diabetes is the ninth leading cause of death across the world. Because of this, consumers tend to find an affordable replacement for sugar having low calories and maintaining blood sugar levels.

In addition, a rise in stevia product demand was also driven by increased awareness of its health benefits and the growing number of consumers that have chosen to live healthier lifestyles. The growing trend of low sugar consumption has encouraged consumers to seek healthy alternatives in the form of sugars. In the food and beverage sector, This is encouraging manufacturers to adopt Stevia in their products.

The Stevia Market is expected to grow at a strong CAGR of 8.6% during the forecast period owing to the increase in the use of sugar-free products. For Instance, In order to promote healthy sugar alternatives and to create a stevia company in India, Arboreal Stevia has come up with a local solution to cater to 150 food and beverage companies through the establishment of an integrated supply chain of stevia.

By type, the market is segmented into whole leaf, powdered, and liquid. The whole leaf segment is expected to grow with a significant CAGR during the forecasted period. In comparison to powdered and liquid, their demand by food & beverage manufacturers and processors is more.

Based on application, the market is bifurcated into food, beverage, dairy & frozen desserts, packaged food products, tabletop sweeteners, and others. The dairy segment held a significant share of the market in 2022 because of the efforts to reduce childhood obesity and boost sales of sugar-containing products by replacing them with stevia. For instance, the company Howtian has launched SoPure Galaxy-Series, a stevia product range specifically formulated to enhance dairy applications and meet growing consumer demand for healthier and more natural dairy products.

The segment by nature of stevia is divided into two parts, namely organic and regular. The segment regular holds the majority of contributions. The main reason why regular stevia accounted for the majority of the market share is due to the ease of access to it. Regular stevia is growing using a variety of chemical fertilizers to produce high-yield stevia in a short time frame and stop the spread of diseases like leaf discoloration.

Based on the Distribution Channel, the market is segmented into online and offline distribution channels. The segment of offline distribution held a significant proportion and is poised to grow in the forecasted period since the offline segment encompasses retail operations in the form of physical stores, including grocery and convenience stores, specialty stores, and retail stores, as well as department stores.

For a better understanding of the market adoption of stevia in the industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific region accounts for the largest market share of stevia because of the more health consciousness among the society and increased demand from the food & beverage industry, and regulatory restrictions on some artificial sweeteners. Furthermore, China has become the leading producer and major exporter of stevia around the world, and within India, brands such as Peopsico, Coco Cola, Danone, Nestle, and Heinz have started using Stevia in their products.

Some of the major players operating in the market include: Cargill, Incorporated; Tate & Lyle; ADM; Sunwin Stevia International Inc; GLG LIFE TECH CORP; Ingredion; DSM; S&W Seed Co.; Layn Natural Ingredients; Pyure Organic