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Press Release: Stevia Market to Surpass US$ 998.6 Million by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Stevia is also referred to as Stevia rebaudiana. Stevia products are produced from rebaudioside A (Reb-A), a highly refined stevia leaf extract. Stevia also contains natural sweeteners and is widely used in the preparation of various food products. The global stevia market is estimated to surpass US$ 998.6 million by the end of 2027 in terms of revenue, exhibiting a CAGR of 8.5% during the forecast period (2020 to 2027).
Drivers
The growing demand for low-calorie food products is driving the market growth of the stevia. This is attributed to the growing prevalence of obesity and other health issues. For instance, according to World Health Organization, in 2016, more than 1.9 billion adults, 18 years or older were overweight. Of these over 650 million were obese. An increasing number of health-conscious consumers around the globe coupled with the growing adoption of a healthy lifestyle among consumers is expected to foster the market growth. The increasing government support for promoting the cultivation of natural ingredients is further projected to augment the market growth of the stevia. For instance, in 2018, Thailand Board of Investment, approved two projects to develop Thailand’s stevia industry. The two projects are related activities, starting from production of stevia extract using biotechnology and production of a stevia sweetener. The project will support farmers growing stevia plant, thereby generating more income for them.
Increasing demand for plant-based sweeteners with natural ingredients is expected to foster the market growth of stevia. Growing use of stevia in beverages and packaged food is expected to propel the market growth. Furthermore, the rising awareness regarding the health benefits of stevia-based products (such as helping in reducing blood sugar) and consumption of low-calorie products is further contributing to the market growth. Furthermore, the increasing stevia- based product availability across the emerging economies is also expected to foster the market growth.
Among regions, Asia Pacific held dominant position in the global stevia market in 2019, accounting for 36.4% market share in terms of revenue, followed by North America and Europe.
Figure 1. Global Stevia Market Revenue Share (%), By Region, 2019
Market Restraints
Stringent rules and regulations regarding the use of stevia as a food ingredient is hampering the product demand. This is due to side-effects associated with the consumption of stevia which includes digestion problems and allergic reactions. This factor is expected to hinder the market growth.
Lack of awareness and bitter after-taste factor restricts the acceptance of this product in confectionery, snacks, and dairy products which have resulted in low consumption of the product across emerging countries. This factor is hindering the market growth of stevia.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 517.0 Mn |
| Historical Data for: | 2017 and 2018 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 8.5% | 2027 Value Projection: | US$ 998.6 Mn |
| Geographies covered: |
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| Companies covered: |
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. |
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Market Trends
The increasing prevalence of diabetes around the globe is projected to offer lucrative opportunities to players in the near future. According to the American Diabetes Association’s report "Economic Costs of Diabetes in the U.S. in 2017”, 1.5 million Americans are diagnosed with diabetes every year. In 2018, 34.2 million Americans, or 10.5% of the population, had diabetes. Nearly 1.6 million Americans had type 1 diabetes, including about 187,000 children and adolescents. Thus, the increasing prevalence of diabetes is projected to foster the market growth of stevia.
Figure 2. Global Stevia Market Revenue Share (%), By Application, 2019
On the basis of application, in 2019, the beverages segment accounted for 34.7% of the revenue share. Stevia is a natural choice for sweetening a wide variety of beverages such as teas, coffees, soft drinks, flavored waters, juices, and alcoholic beverages. Stevia’s increasing demand from the beverage sector is owing to its benefits like zero calories, 100% natural, tooth-friendly, pH stable, non-fermenting, highly soluble, heat stable, and shelf stable. This is expected to drive demand for stevia from the beverage segment during the forecast period.
Global Stevia Market - Impact of Coronavirus (Covid-19) Pandemic
Outbreak of coronavirus has impacted the supply chain of the food & beverage industry. For instance, The Coca-Cola Company experienced disruption in its artificial sweetener supply chain from China as a result of the coronavirus outbreak. This affected production of diet and no-sugar drinks. The company purchases sweeteners such as sucralose, steviol glycosides from suppliers in China. According to the company, the disruption will negatively impact its unit case volume and financial results for the first quarter of 2020. However, the company expects the disruption will not have a significant impact on full year 2020 financial results. According to Coherent Market Insight’s analysis, the coronavirus outbreak is expected to have minimal impact on the growth of the stevia market over the forecast period.
Competitive Section
Key players operating in the global stevia market include 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.
Stevia refers to around 240 species of herbs and shrubs of the sunflower family Asteraceae. Stevia is used as a sweetener and sugar replacer which is obtained from green leaves of stevia plants. Stevia has various health benefits such as lowering blood glucose and blood pressure levels. Stevia has zero calories, making it popular for use in food & beverage products. Stevia is mostly used in baked goods, dairy products, beverages, confectionery products, and nutritional supplements.
Major players operating in the stevia market are focusing on various strategies such as capacity expansion in order to meet the increasing demand of stevia and strengthen their market presence. For instance, in 2017, PureCircle (manufacturer of stevia ingredients) completed expansion of its stevia plant-based in Malaysia. The expansion of the production facility will help PureCircle to double its production capacity.
Moreover, key players are focusing on various strategies such as new product launches in order to expand their product portfolio. For instance, in 2018, Cargill, Inc. launched EverSweet, a new stevia sweetener for U.S. confectionery market. The sweetener was created through fermentation, and can be used in variety of confectionery applications including chocolate, chewing gum, as well as hard candy and mints.
Growing demand for antioxidants and natural ingredient products due to increasing consumption of low-calorie food around the globe is expected to provide potential opportunities for stevia manufacturers. Changing demographics on a global scale coupled with the increasing focus of the key manufacturers to enhance the supply chain infrastructure is expected to propel the market growth of stevia. Backward integration from manufacturers to raw material suppliers will further favor the market growth.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
* Browse 50 market data tables* and 45 figures* on "Stevia Market” - Global forecast to 2027.
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