Stevia Market Size, Share & COVID-19 Impact Analysis by Type (Dry Extract, Liquid Extract, and Others), Analysis by Application (Bakery and Confectionery, Beverages, Dairy Products, Frozen Products, Dietary Supplements, and Others), and Regional Forecast, 2024-2032

Stevia has been used for more than 1,500 years by the Guaraní people in Brazil and Paraguay as a natural sweetener in herbal teas. It is commonly used in health products owing to its beneficial properties. Rising awareness about the benefits of stevia among individuals, paired with the growing importance of natural sweeteners in food & beverage applications, is driving the demand for the product. Since stevia has zero calories, numerous food & beverages manufacturers are using it as a low-calorie sweetener. Moreover, the rising preference for low-sugar or no-calorie diets owing to the growing prevalence of obesity and diabetes is further propelling the product demand. According to the International Diabetes Federation (IDF), approximately 537 million adults between 20 and 79 years had diabetes in 2021. The growing interest in sugar alternatives led manufacturers to develop innovative sugar-free to meet the rising demand. For instance, in July 2023, Ingredion Inc.,  an American food and beverage ingredient provider, introduced PureCircle Clean Taste Solutions, a range of stevia solutions tailored to specific food and beverage applications.

Increasing investments by private players and rising government initiatives to promote the adoption of stevia-based substitutes form a major factor driving the stevia market growth. For instance, in July 2021, Layn Natural Ingredients, one of the global leaders in the production of premium plant-based functional ingredients, invested USD 148 million to expand its infrastructure and support R&D and innovation in plant-based, natural sweeteners and botanicals and shore up its supply chain. The investment would be able to process an additional 4,000 megatons of stevia leaf extract per year.

Impact of COVID-19 

The pandemic had a moderate impact on the global stevia market. Initially, there were disruptions in the supply chain and distribution channel, leading to temporary shortages and price fluctuations. Lockdowns and travel restrictions also led to trade restrictions affecting the import and export. According to the Centre for the Promotion of Imports from Developing Countries (CBI), in 2019, Malaysia exported 387,133 tons of stevia extracts, while in 2021, it exported only 50,868 tons. This decrease was mainly due to logistics challenges faced during COVID-19. However, the pandemic led to an increasing focus of consumers toward health and wellness products, potentially boosting the demand for stevia as a sugar substitute.

Key Insights

The global stevia market report covers the following key insights:

• Overview of the Stevia Industry


• Demand for Stevia in the Food Sector


• Drivers, Restraints, and Opportunities


• Qualitative Analysis on COVID-19 Impact

SEGMENTATION

Analysis by Product Type

The dry extract segment is expected to hold a major share of the global stevia market. Dry extract is popularly consuming format due to its cost-effectiveness and various applications ranging from beverages, snacks to baked goods.

The liquid extract is expected to grow at a high CAGR over the forecast period. Liquid stevia extracts help to overcome solubility challenges and are usually available in dropper packaging and added to various drinks, such as tea, coffee, smoothies, juices, and shakes. The players in the market are coming with new launches to meet the rising demand. For instance, in July 2022, Sweegen, a provider of sweet-taste solutions for food and beverage manufacturers, launched Bestevia LQ, a collection of liquid stevia-based sweeteners. The new range has been designed to reduce sugar in applications such as carbonated soft drinks, liquid sweeteners, confectionery items, dessert toppings, and others.

Analysis by Application

The  beverage segment is expected to hold a major share of the global stevia market. Stevia is known to be one of the most popular additives and ingredients used in food and beverages. The increasing consumer preference for low-calorie and low-sugar beverages is strongly influencing the segment growth globally. Further, Stevia-based sweeteners are often used in bakery and confectionery applications due to its heat stability, zero-calorie content, safety of use by people with diabetes, and their tooth-friendly nature. The growing application of stevia food applications led manufacturers to expand their sugar-free product portfolio to meet the soaring demand. For instance, in July 2023, Tate & Lyle, a global supplier of food and beverage ingredients, added a sweetener portfolio with a product named TASTEVA SOL Stevia Sweetener in its business. The new product helps with solubility challenges, which are often found in beverage concentrates, dairy fruit preparations, and sweet syrups.

REGIONAL STEVIA MARKET ANALYSIS

Asia Pacific is expected to hold a dominant share of the global stevia industry. The increasing demand from the dairy sector, growing concerns over obesity and diabetes, and regulatory restrictions on certain artificial sweeteners is positievly influencing the market growth. Consumers in the region are increasingly seeking natural, plant-based alternatives to artificial sweeteners. According to the global nutrition report, around 6.0% of adult men and 4.3% of adult women in Japan were obese. China is the most significant market for stevia products, primarily driven by the increased consumption of low-calorie and food products containing natural sweeteners. The key players in the industry are developing extensive stevia solutions to meet the rising concerns of sugars and provide manufacturers of dairy products with identical sweetness profiles. For instance, in July 2023, Howtian LLC, one of the global leaders in producing and supplying premium quality natural sweeteners and nutritional and functional ingredients, developed SoPure, formulated to enhance dairy applications. The new range resembles sugar's sweetness and is used in several dairy products.

North America is set to exhibit higher CAGR over the forecast period owing to the increasing prevalence of obesity-related diseases in the U.S. and Canada due to high-calorie consumption and sedentary lifestyles. The shift of consumers toward healthy foods using stevia-based products is anticipated to boost the market growth in the region.

Key Market Players

• Foodchem International Corporation


• Archer-Daniels-Midland Company (ADM)


• Van Wankum Ingredients


• Ingredion Incorporated


• BENEO GmbH


• PureCircle


• Tate & Lyle


• Haihang Industry Co.


• Howtian LLC.


• Sweegen


• Layn Natural Ingredients

Key Developments

• In March 2023, Heartland Food Products Group officially announced the opening of Splenda Stevia Farm, a fully integrated, U.S.-based stevia farm. The farm aims to produce superior-tasting stevia sweeteners and decrease environmental impact by eliminating unnecessary CO2 emissions produced due to stevia supply chain operations.


• In October 2020, SweeGen expanded its portfolio of natural sweeteners with the commercial production of Bestevia Reb I. The new product is a high-purity stevia sweetener.