Stevia is a natural sweetener extracted from the leaves of the Stevia plant. It is widely used as a sugar substitute in food & beverage products due to its zero calorie and low glycemic benefits. Stevia offers sweetness around 300 times that of sugar with minimal effect on blood sugar levels. This has increased its popularity among health conscious consumers as an alternative to sugar. The global stevia market offers a natural sweetener solution to the food industry to meet the rising demand for low calorie and healthy products.
The Global Stevia Market 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 2024 to 2031.
Stevia extract and stevia ingredient variants find wide applications in bakery, dairy, confectionery, table top sweeteners and beverages industries due to their clean label and sugar reducing properties. The growth is driven by increasing awareness about health risks associated with sugar consumption and shift towards low calorie sugar substitutes.
Key Takeaways
Key players operating in the Stevia Market Size are Merck, iCo Therapeutics, AEterna Zentaris, AEterna Zentaris AG, Eurofins Advinus, Pieris Pharmaceuticals, Dafra Pharma. Stevia extracts and ingredients market is dominated by these major players on the backbone of innovation and expansion of application industries.
The global demand for stevia is growing at an exponential rate with the rising health consciousness. Stevia helps food innovators replace sugar while retaining sweet taste, texture and mouthfeel of sugar-based products. This is driving the proliferation of stevia based product launches across several food & beverage segments.
The stevia market is also witnessing significant global expansion as key players are investing in geographic expansion, research & development and strategic partnerships. Several governments also encourage stevia cultivation and usage to promote public health initiatives of reducing sugar intake. This will aid the global stevia industry in reaching an even wider consumer base.
Market Drivers
The growing obesity and diabetes epidemic coupled with shifting preference towards healthier diet alternatives is fueling the demand for low calorie sweeteners globally. Stevia being a natural plant-based sweetener with zero calories fulfills this consumer need better than artificial sweeteners. With increased campaigns and regulations promoting reductions in sugar consumption, Stevia is emerging as an ideal alternative sweetener for the food industry as well. This increasing demand and versatility of stevia is a key driver behind the exponential growth of this unique sweetener.
Impact of geopolitical situation on market growth
The current geopolitical tensions have impacted global supply chains and trade dynamics of many industries including the stevia market. The ongoing Russia-Ukraine conflict and sanctions have disrupted exports from Russia and Ukraine which are major producers of some raw materials used in stevia production. It has also inflated shipping and logistical costs. Similarly, the simmering tensions between US and China have limited cross-border investments and technology transfers impacting China's role as a major market and producer.
Looking ahead, companies in the stevia market need to diversify their sourcing networks and establish partnerships in multiple regions to avoid dependency on key markets disrupted by geopolitics. Developing capacities in other potential markets like Latin America can help reduce supply risks. Companies also need to explore substitutes for raw materials sourced from politically volatile regions and focus on self-sufficiency. Adopting flexible pricing strategies accounting for changing trade and input costs will be crucial. Overall, geopolitical risks emphasize the need for resilience in building integrated regional supply chains.
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