Organic Stevia Market Report

The dairy industry is looking to use stevia to oppose childhood obesity and increase milk sales. According to the data of the World Health Organization, in the year 2022, a total of 37 million children under the age of 5 were overweight. Furthermore, a total of 390 million children and adolescents aged 5–19 years were overweight in 2022, including 160 million who were living with obesity. Thus, to overcome this, the International Dairy Association and the National Milk Producers Federation are requesting the FDA redefine "milk" and 17 other dairy products to allow for the addition of stevia without mandatory labelling for consumers. Also, the demand is expected to rise in the coming future due to health benefits of consuming organic stevia, as it is helpful for diabetic patients. Organic stevia is popular among diabetics for being a natural, zero-calorie sweetener with a glycaemic index of zero. It offers a healthier option for managing glucose levels and appeals to those avoiding synthetic additives in their diet. According to the data of the International Diabetes Federation, the total number of diabetic patients globally is 537 million and is rising yearly, where the projected number of patients in 2030 is expected to be 643 million and will reach 783 million by the end of 2045. Thus, the rising problem of obesity and patients with diabetes is expected to boost the demand for organic stevia.

The major problem that is faced by organic stevia is the higher price compared to traditional sweeteners like table sugar or high-fructose corn syrup, which directly limits its adoption among budget-conscious consumers. The factors behind the high cost of organic stevia are organic farming practices, complex processing, and extraction methods; limited market positioning targeting health-conscious consumers; and smaller economies of scale leading to higher costs. Thus, high prices pose a significant barrier for the growth of the organic stevia market. Also, the organic stevia market gets hampered due to environmental factors like bad weather conditions, climate change, pest and disease pressure, soil health, and geographic limitations that significantly impact the stevia crop yields and supply chains. Stevia crop is considered to be sensitive to extreme weather like droughts, heavy rains, and temperature shifts, which can lead to reduced growth and lower yields or an increased risk of fungal diseases. Thus, changes in weather patterns also affect pests and diseases, while extreme weather events impact soil health and fertility, affecting plant growth and yield. Hence, due to the high cost and environmental factor, the market for organic stevia gets hampered.

In March 2022, Cargill sweetened its stevia products with the commercial availability of its EverSweet + ClearFlo technology. Combining Cargill's stevia sweetener with a natural flavor, the new sweetener system provided multiple benefits, including flavor modification, faster dissolution, and improved solubility and stability in formulations, according to the company. Using EverSweet's quick sweetness onset and potency as a foundation, EverSweet + ClearFlo created a more sugar-like experience, especially at higher concentrations. It also helped manage off flavors from other ingredients used in formulation, such as earthy notes from proteins, bitterness from caffeine, or metallic tastes from potassium chloride. In Febuary 2022, Sweegen announced the commercialization of its newest advancement in sweetness: the high-intensity sweetener brazzein. Since February 2022, food and beverage brands seeking new ways to create better-for-you and reduced sugar products had begun product development activities with Sweegen's Ultratia™ brazzein. Samples were ready for brands interested in expanding their sugar reduction toolkits with cost-competitive ingredients to sugar. Brazzein was 500 to 2,000 times sweeter than regular sugar and low-calorie, making it an excellent alternative to sugar, artificial sweeteners, and old generation nature-based sweeteners such as stevia rebaudioside A.

The European region can be considered a lucrative market as stevia is one of the most popular natural sweeteners in the whole European market. As per the data, the organic stevia market in Europe reached a value of 150.8 million in 2021, and the market is expected to grow, registering a compound annual growth rate of 9% and reaching US$ 234 million in 2026. Also, the Asia Pacific region is witnessing significant growth in the stevia industry due to increased awareness of the health risks due to excessive consumption of sugar. As per the data of the World Health Organization, there will be a growth of 76% in diabetes cases in Southeast Asia by 2045, which directly drives the demand for healthier sweetener alternatives. Also, the demand for organic stevia is expected to rise in North America due to the rising awareness of side effects of consuming excessive sugar. According to the data of the International Food Information Council, 3 out of 4 Americans look to reduce sugar in their diet. Also, as per the health survey considered in 2023 by the IFIC Food & Health Survey, a total of 72% of Americans choose to avoid sugar in their diet. Thus, a perfect option for the sugar is considered organic stevia, as it is considered that stevia is 250-300 times sweeter than sucrose due to stevia glycosides. Thus, due to health-conscious awareness, the market for organic stevia is forecast to rise in North America.