Market Overview
Stevia is a sweetener and sugar substitute extracted from the leaves of the plant species Stevia rebaudiana. It is about 200-300 times sweeter than sugar but has zero calories. The major advantage of stevia is that it helps manage weight and control blood sugar levels. It is widely used in the food and beverage industry as a sugar substitute in products such as soft drinks, juices, yogurt, table-top sweeteners and various baked goods. The rising health consciousness among consumers and growing demand for low-calorie natural sweeteners is fueling the uptake of stevia.
The Global Stevia Market Growth is estimated to be valued at US$ 825.4 Bn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the Stevia Market Growth are Merck, iCo Therapeutics, AEterna Zentaris, AEterna Zentaris AG, Eurofins Advinus, Pieris Pharmaceuticals, Dafra Pharma. The major players are investing in innovations to develop new stevia varieties with better taste and solubility.
The demand for stevia is growing significantly owing to the changing lifestyle habits and increasing health consciousness among people. The consumers are increasingly opting for low-calorie foods to manage weight and reduce sugar intake.
Technological advancements are further enhancing stevia's functionalities. Researchers are engaged in developing stevia-based ingredients with flavors and mouthfeel similar to sugar through biotechnology interventions like gene-editing.
Market Trends
One of the major trends in the market is the burgeoning demand for low-calorie, natural sweeteners from the food and beverage industry. Stevia helps companies to formulate healthier food products aligning with consumer demand.
The second trend is the increased adoption of rebiana-based stevia extracts and derivatives. Rebiana-based steviol glycoside extracts have taste profiles closest to sucrose and are widely used in the commercial production of foods and beverages.
Market Opportunities
One major opportunity is the rise in sugar-conscious consumers globally. Food companies can tap into this consumer base and launch sugar-free and low-calorie products sweetened with stevia to meet changing consumer needs.
Secondly, the adoption of stevia is gaining momentum in emerging economies due to increasing health and wellness trends. Stevia companies have scope to increase penetration in developing Asian, Latin American and African markets.
Impact of COVID-19 on Stevia market growth
The COVID-19 pandemic has impacted the growth of the stevia market in varying degrees. During the initial lockdown phases in early 2020, market demand witnessed a decline as the foodservice industry shuddered to a halt with restrictions on dining out. This impacted the offtake of stevia, which finds major usage as a natural sugar substitute in commercial beverages and food products. However, as people increasingly relied on at-home consumption, demand revived for stevia products targeted at retail consumers. Nevertheless, supply chain disruptions hampered production and distribution to some extent.
Post pandemic, the market is expected to pick up momentum as economies reopen and restrictions ease. However, supply chain constraints may continue in the near future due to labor shortages, logistic challenges and rising input costs. To mitigate the impact, companies are ramping up inventories, diversifying suppliers and exploring alternative transportation modes. Longer term, the stevia market is anticipated to gain from rising health consciousness and demand for low-calorie sweeteners in the post COVID world.
The Asia Pacific region concentrated largest value share in the global stevia market pre-pandemic driven by abundant production and high consumption in China and Southeast Asian countries. However, during the COVID crisis, regions like North America and Europe showed relatively faster recovery and growth as stringent lockdowns were lifted earlier. Going forward, the Latin American region is projected to emerge as the fastest growing market for stevia backed by increasing cultivation and extract exports from Brazil and Paraguay.
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