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 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. Key players are investing heavily in R&D for extraction technologies to commercialize high-purity rebaudioside A at low costs. They are also focusing on geographic and application segment expansion to strengthen their market position.
The growing demand for low-calorie and sugar-free products from health-conscious consumers is a major factor driving the adoption of stevia sweeteners in the food and beverage industry.
Stevia Market Size is finding increased usage in a variety of applications including bakery, confectionery products, snacks, table-top sweeteners, beverages etc. Consumer preference for natural ingredients is further augmenting the demand.
Major food and beverage companies are expanding their stevia-based product portfolio globally for markets in Asia Pacific, Europe, and North America. Countries like China, India, Brazil are high growth regional markets due to rising health awareness, expanding middle-class and changing dietary habits. Stringent regulatory norms and quality standards in developed markets also create significant opportunities.
Market drivers
Changing lifestyles and rapid urbanization have increased the prevalence of lifestyle diseases such as obesity and diabetes. This is the key driver boosting the adoption of low-calorie sugar substitutes like stevia. Stevia extract provides the sweetness of sugar without the calories, making it suitable for health-conscious consumers. Stevia is gaining wide acceptance by global food companies for product line extensions targeted at diabetics and weight watchers.
The current geopolitical uncertainty is having an impact on the growth of the stevia market. With rising geopolitical tensions and economic volatility across various regions, trade restrictions and supply chain disruptions have become more frequent. This poses challenges for the smooth procurement of stevia leaf and extracts, which are key raw materials for the market. Countries like China, Japan and Paraguay are among the major producers as well as exporters of stevia leaves. Any escalation in geopolitical conflicts involving these countries could hamper their export ability and international trade, affecting the global stevia supply chain. Market players will need to diversify their sourcing networks and develop alternate supply routes to mitigate such risks. Strategic partnerships with local growers across different geographies can help boost regional production and reduce dependence on key exporting countries. Companies also require contingency plans to deal with sudden supply or demand shocks due to geopolitical issues. Moving forward, it will be important for market stakeholders to closely monitor evolving political scenarios and take preventive measures to ensure supply resilience.
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