Stevia Market is Anticipated to Witness High Growth Owing to Rising Health Conscious Population

 

Stevia Market

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 negligible calories. Stevia is gaining popularity as natural low-calorie sweetener ideal for weight management and diabetes. The stevia extract is non-fermentable and heat stable which makes it suitable for various food applications like beverages, dairy products, bakery items etc. The global stevia market is driven by the growing health conscious population preferring low-calorie natural sweeteners over artificial sweeteners.

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. These major players are focusing on expanding their stevia product portfolio and increasing production capacities to cater to the growing global demand.

The key opportunities in the Stevia Market Demand include new product launches with stevia extracts and innovating application of stevia in different food categories. Stevia extracts are finding wider usage in beverage variety like coffee, tea, juices; dairy applications like yogurts, ice-creams etc. The global companies are also exploring opportunities in emerging markets of Asia Pacific and Latin America region to further boost sales.

The global expansion has been dominant strategy adopted by stevia market players. The major companies have production and manufacturing facilities spread across regions to establish strong global supply chains. Furthermore, collaborations with local players help enter new markets and cater to regional consumer preferences. Europe and North America remain lucrative markets while China, Brazil, and India are high growth regional markets.

Market Drivers

Growing health awareness and demand for natural low-calorie sweeteners are the key drivers for stevia market. The rising prevalence of obesity and diabetes globally has increased focus on sugar reduction. Stevia satisfies the consumer need for sugar alternatives and is considered safe for diabetes and weight management. The clean label and natural positioning of stevia is appealing to health-conscious consumers.

Market Restrains

High production costs of stevia extracts is one of the major challenges restraining broader applications. Extracting sweet-tasting Reb A from stevia leaves requires specialized extraction methods increasing costs. Regulations regarding stevia extracts and approvals for new applications also vary across regions posing restrain. Consumer perception of aftertaste is another factor slowing adoption in some product categories. However, industry is overcoming these restraints through continuous innovation.

Segment Analysis

The stevia market is segmented on the basis of form, application, and geography. The powder segment dominates the market as it is easy to use and can be stored for longer period of time. It is used widely in various applications such as beverages, food, dietary supplements, and others. The beverage segment is the fastest growing segment due to increasing demand for low or zero calorie alternatives to sugar among consumers. Stevia is widely used as a sweetener in flavored drinks and bottled water.

Global Analysis:

North America dominates the global stevia market with highest market share owing to increasing health awareness among consumers and preference for natural sweeteners over artificial sweeteners in the region. Asia Pacific shows fastest growth in the stevia market due to rising diabetic population and changing food habits in the region. China is the largest producer as well as consumer of stevia extracts globally. Rapid urbanization in countries like India is also contributing to the rising demand for packaged food products using natural sweeteners like stevia.

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