By: Snehit Borse*
Based on a report by Grand View Research, Inc.; the global stevia market is projected to value USD 556.7 million by 2024.High demand for healthy food products among consumers owing to the rising health consciousness is anticipated to boost the market expansion in the coming years. This product is likely to offer sweetening properties without effecting consumer’s health. In addition, medical benefits such as control over blood pressure level are estimated to influence its demand among diabetic consumers.
High demand for healthy and low calorie food products is expected to impel growth of the stevia market over the forecast period (2013 to 2024). Rising popularity of the product owing to its sweetening properties without having any adverse effects on consumers health can fuel market growth. Increasing adoption of product in confectionery and bakery products is likely to stimulate development of the market for stevia. Increasing prices of sugar and major health concerns associated with sugar consumption can further boost the demand for stevia in near future. Growing use of stevia in herbal medicines and tonics for diabetic patients owing to its anti-fungal and antibacterial properties can spur market growth from 2018 to 2024.
The worldwide stevia market can be segregated on the basis of application and region. Based on application, the market can be divided into food, pharmaceutical, sweeteners, beverage, and tabletop. In the coming years, the food segment is expected to witness significant growth owing to rising demand for low-calorie food products. In addition, growing consumer awareness regarding consumption of healthy food is likely to stimulate use of stevia in several food products.
In 2015, beverage segment accounted for 34.8% of total market volume owing to high demand for low-calorie juices, carbonated drinks, and soft-drinks among consumers. However, tabletop sweeteners were predicted as the third largest segment and accounted for nearly 22.2% of overall volume share. In addition, the product is estimated to replace artificial sugar based sweeteners in the coming years to support consumers suffering from diabetes.
On the other hand, pharmaceutical segment can also witness significant growth in the coming years due to increasing use of stevia in medicines and tonics. Medical abilities of stevia such as obesity and blood pressure control can fuel the growth of the stevia market in the forthcoming years. In addition, ability to heal injuries and wounds is expected to influence market expansion over the forecast period.
Regional segmentation includes Europe, North America, Asia Pacific, Latin America, and Middle East & Africa (MEA). In 2015, Asia Pacific dominated the market while accounting for around 35.3% of global volume. Increasing acceptance of the product in China, Japan, and South Korea as stevia based natural sweeteners. In addition, developing economies such as Thailand, India, and Malaysia are likely to be key markets for stevia owing to the rising food and beverage industry. Moreover, supportive climatic conditions and rising awareness about benefits of natural sweeteners can influence acceptance of the product in Japan.
In North America, the stevia market is expected to witness substantial growth in terms of volume at around 4.5% CAGR during the forecast period. Approvals from the Food and Drug Administration (FDA) and changing guidelines regarding the use of stevia can stimulate the regional market.
In Europe, the market is predicted to witness significant volume growth at a CAGR of over 4.3% over the forecast period. High demand for organic products can play essential role in the growth of the market. Latin America, on the other hand, is estimated to expand at an impressive CAGR in the coming years owing to large scale production of stevia. Favorable climatic conditions coupled with growing awareness regarding the benefits of natural sweeteners among consumers are expected to impel growth of the stevia market in this region.
Some of the leading companies offering stevia products are Tate & Lyle Plc.; Cargill Inc; GLG Life Tech Corp.; PureCircle Ltd; and Evolva Holding S.A. Most companies are expected to focus on R&D investments to develop better product for a wider consumer use. In addition, companies can also get into strategic partnerships with farmers and cultivators to maintain their positions in the global market.
*Senior Analyst (Team Lead); Food & Beverages and Associated Technologies