Stevia Market Analysis

Stevia Market (Global, 2025)

Introduction

The stevia market is experiencing a significant evolution as consumers are shifting their preferences to healthier and more sustainable sweetening alternatives. Aware of the negative health effects of sugar, the stevia plant, whose leaves are used as a natural sweetener, has risen in popularity among consumers and food manufacturers. The factors that are driving the stevia market include the growing prevalence of diabetes and obesity, the trend towards clean labeling, and the increasing number of food and beverage products that are formulated with stevia. This report will also explore the regulatory framework and the strategies of the key players in the market. The food and beverage industry is adapting to these changing preferences, and the stevia market is a key growth driver.

PESTLE Analysis

Political

By 2025, the market for stevia is influenced by several political factors, including government regulations on food additives. In the United States, the Food and Drug Administration (FDA) has approved the use of steviol glycosides, the sweet derivatives of stevia, which has increased their use in food. In 2024, more than 60 countries have established stevia regulations, with the European Union setting a maximum daily steviol equivalent of 0.4 mg/kg body weight. This has influenced the formulation of products and market entry strategies.

Economic

In 2025, the stevia market is expected to be shaped by the rising demand for low-calorie sweeteners, driven by health-conscious consumers. By 2024, the global market for natural sweeteners, including stevia, is expected to reach $ 1.4 billion, with stevia accounting for about 30% of the total. The average price of stevia extracts has been reported at $ 20 per kilogram, which is also an indication of the cost pressures and price competition that manufacturers have to deal with to survive in the market.

Social

Healthier life is gaining ground in the social sphere, and with it the demand for stevia as a natural sweetener. In 2024, a survey shows that 65% of consumers in the U.S. are actively looking for products without added sugar, and 45% prefer natural sweeteners to artificial ones. As a result, food and beverage companies are re-formulating their products. Stevia is a popular choice because of its zero-calorie profile and natural origin, which fits in with the growing trend of clean label products.

Technological

The improvement of stevia production is due to the improvement of the agricultural and extraction methods. By 2024, improvements in precision farming and biotechnological methods had increased the stevia crop by a third, enabling it to be grown more sustainably. Extraction methods have also been improved, reducing the cost of extraction of a high-purity stevia extract. One company, for example, has reported that they can extract a kilogram of stevia for as little as five dollars, thereby making it more attractive to manufacturers.

Legal

In order to establish the legal framework for the stevia market, it is important to establish the framework for the food safety and labeling of stevia. In 2025, the Codex Alimentarius set guidelines for the use of steviol derivatives, which the member states are encouraged to adopt. These guidelines are an essential condition for accessing the market. Failure to comply with them is subject to sanctions. In 2024, it was reported that 15 countries had already introduced stricter labeling laws requiring clear indication of stevia content in food, which had a significant impact on how companies marketed their products.

Environmental

In the stevia industry, the concern for the environment is growing, especially in terms of sustainable production. It is estimated that stevia cultivation requires half as much water as sugar cane farming. It is therefore an attractive option for consumers who are concerned about the environment. Also, studies have shown that stevia cultivation produces significantly fewer greenhouse gases. The reduction is as much as 70%. This is in line with the goals of sustainable development.

Porter's Five Forces

Threat of New Entrants

In 2025 the stevia market will be subject to a moderate threat from new entrants. However, the demand for natural sweeteners will offer opportunities for established companies with strong brands and distribution networks. New companies will be deterred by the high entry barriers to the market and the high cost of R&D to ensure product quality and compliance.

Bargaining Power of Suppliers

The bargaining power of suppliers in the stevia market will be low in 2025. The main raw material for the production of stevia, the stevia plant, is available from various sources, which reduces the power of suppliers. Agricultural technology and the possibility of vertical integration by manufacturers can also reduce the power of suppliers.

Bargaining Power of Buyers

The bargaining power of buyers in the stevia market will be high in 2025, due to the growing availability of alternative sweeteners and the growing health consciousness among consumers. Retailers and food manufacturers are expected to demand a low price and a good product quality, which will push suppliers to continue to innovate and offer better value to retain their customer base.

Threat of Substitutes

The threat of substitutes in the stevia market is expected to be high in 2025. The choice of sweeteners is wide, ranging from sugar alcohols to artificial sweeteners to natural sweeteners such as monk fruit and agave. This large number of substitutes will lead to price competition and put pressure on stevia manufacturers to differentiate their products.

Competitive Rivalry

Competition in the stevia market will be intense in 2025. Competition will be characterized by a large number of market participants, each striving to gain market share, which will lead to aggressive marketing strategies and new product developments. Competition will also be driven by a growing preference for healthier food. This will force companies to constantly develop new and improved products in order to remain competitive.

SWOT Analysis

Strengths

• Natural and zero-calorie sweetener appealing to health-conscious consumers.
• Growing consumer preference for plant-based and organic products.
• Established supply chains and increasing cultivation of stevia plants.

Weaknesses

• Higher production costs compared to synthetic sweeteners.
• Limited consumer awareness and understanding of stevia's benefits.
• Potential taste preferences and aftertaste issues among some consumers.

Opportunities

• Expansion into new markets and regions with rising health trends.
• Innovations in product formulations and applications in food and beverages.
• Partnerships with food manufacturers to create stevia-based products.

Threats

• Intense competition from other natural and artificial sweeteners.
• Regulatory challenges and potential changes in food safety standards.
• Market volatility due to climate change affecting stevia cultivation.

Summary

The Stevia market in 2025 is expected to be driven by the health and natural aspects of stevia, but also by the costs of production and the level of consumer awareness. Opportunities are expected to be available for the market through expansion and innovation. Competition and regulatory changes may also affect the market. Strategically, education and cooperation will be key to enhancing the strengths and overcoming the weaknesses.