The Stevia Market is estimated to be valued at US$ 716.49 Mn or Mn in 2023 and is expected to exhibit a CAGR of 8.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
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 not heat stable. Stevia finds widespread applications in the food and beverage industry where it is used for sweetening soft drinks, juices, dry syrups, table-top sweeteners, and dairy products. The rising demand for low-calorie and sugar-free products is fueling the growth of the stevia market.
Market Dynamics:
Increasing health consciousness among consumers is a major factor driving the growth of the stevia market. With growing awareness regarding the harmful effects of excessive sugar consumption, consumers are shifting towards low-calorie sugar substitutes like stevia. According to the Centers for Disease Control and Prevention (CDC), excessive sugar consumption can lead to obesity, type 2 diabetes, heart diseases, etc. This has prompted food manufacturers to replace sugar with natural sweeteners like stevia in various food products. Additionally, rapid urbanization coupled with the rising disposable incomes in developing regions is fueling the demand for processed and convenience foods, which, in turn, is augmenting the demand for stevia. However, the high cost of stevia extract as compared to sugar is limiting its widespread adoption. Ongoing R&D activities for the commercial production of Reb M, which is as sweet as sugar and heat stable, could help address this challenge and further accelerate the market growth over the forecast period.
Segment Analysis
The stevia market is segmented into leaves and extracts. The extract segment dominates the market and is expected to witness high growth over the forecast period. This is because extracts have higher sweetness potency compared to leaves and provide easier handling and transportation. Further, extracts find wide application in various end-use industries like food & beverage, pharmaceuticals, and others.
PEST Analysis
Political: The stevia market is positively impacted by supportive regulatory policies and approval of stevia extracts as a food additive by various regulatory bodies worldwide.
Economic: The rising disposable incomes and changing consumer preferences towards low-calorie sweeteners are fueling the growth of the stevia market globally.
Social: Increasing health awareness among consumers regarding sugar reduction in their daily diets is driving the adoption of stevia sweeteners.
Technological: Investments in R&D for development of new stevia varieties with higher sweetness potency and minimal bitter aftertaste through genetic engineering are creating growth opportunities.
Key Takeaways
The global Stevia Market Size was valued at US$ 716.49 Mn in 2023 and is expected to reach over US$ 1,282.33 Mn by 2030, expanding at a CAGR of 8.5% during the forecast period. The increasing demand for natural, low-calorie sweeteners from the food & beverage industry is one of the major factors propelling the market growth. Regionally, North America dominates the global market and is expected to maintain its lead over the forecast years. This is attributed to rising health consciousness coupled with increasing demand for plant-based and clean label products.
Regional analysis
Regionally, Asia Pacific is projected to witness the fastest growth in the stevia market during 2023 – 2030. This is attributed to increasing consumer health awareness, rising disposable incomes, and burgeoning food processing sector in emerging economies like China and India. Further, increasing R&D investments by major players for development of new stevia varieties suitable for tropical climate conditions is augmenting the market growth in the region.
Key players
Key players operating in the stevia market are Nestle 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. These players are focusing on new product launches, expansion of regional presence and enhance production capabilities to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it