Next Generation Stevia Market Report: Trends, Forecast and Competitive Analysis to 2031

• Within the type category, rebaudioside D is expected to witness the highest growth over the forecast period.
• Within the end use category, beverage producer is expected to witness the highest growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.

Emerging Trends in the Next Generation Stevia Market

• Fermentation and Bioconversion Technologies: This trend involves producing specific steviol glycosides (like Reb M and Reb D) through fermentation or enzymatic bioconversion, rather than traditional leaf extraction. This method offers higher purity, improved taste, scalability, and a more sustainable production process, addressing the bitter aftertaste challenge effectively.
• Clean Label and Natural Positioning: There's a growing emphasis on positioning next generation stevia as a truly natural, plant-based sweetener without artificial additives. This trend caters to consumer demand for transparent ingredient lists and aligns with the broader clean label movement, enhancing market appeal and consumer trust.
• Taste Modulation and Blending Solutions: This trend focuses on developing sophisticated blends of various steviol glycosides and integrating them with other natural flavor modifiers. The aim is to create sweetener solutions that perfectly mimic sugar's taste profile and mouthfeel, minimizing off-notes and expanding application versatility across diverse food matrices.
• Expanded Application Beyond Beverages: While beverages remain a key segment, next generation stevia is increasingly being adopted in a wider range of food categories. This includes dairy products, confectionery, baked goods, cereals, and even savory applications, driven by improved taste and functionality that allows for seamless integration into complex formulations.
• Sustainable Sourcing and Production Practices: The market is seeing a greater emphasis on sustainable and ethical sourcing of stevia leaves, even for traditional extraction, and energy-efficient practices in bioconversion. This trend reflects growing corporate social responsibility and consumer demand for environmentally friendly ingredients, influencing supply chain decisions.

Recent Developments in the Next Generation Stevia Market

• Regulatory Approvals for Bio converted Steviol Glycosides: A significant development is the increasing number of regulatory approvals for steviol glycosides produced via bioconversion (e.g., Reb M, Reb D) in major markets like the EU and UK. This opens doors for broader commercialization and integration into a wider array of food and beverage products, as seen with Ingredion's PureCircle.
• Launch of Advanced Stevia Blends: Manufacturers are actively introducing new and refined stevia blends that combine various steviol glycosides to achieve optimal taste profiles. For instance, HOWTIAN's SoPure Andromeda blends are tailored for specific beverage applications, offering enhanced sweetness and reduced aftertaste, catering to specific product needs.
• Investment in Fermentation and Enzymatic Production: There's a substantial increase in investment and technological advancements in producing stevia via fermentation and enzymatic processes. Companies like Cargill and DSM-Firmenich (Avansya with EverSweet) are scaling up these methods, which promise higher purity, better taste consistency, and more sustainable production compared to traditional leaf extraction.
• Expansion into Functional and Sports Nutrition: Next-generation stevia is gaining traction in functional foods, sports drinks, and meal replacements. Companies are incorporating these advanced sweeteners into protein shakes and electrolyte beverages to provide clean-label, sugar-free options that appeal to health-conscious and active consumers.
• Increased Consumer Awareness Campaigns: Recent developments include targeted social media campaigns and educational initiatives aimed at raising consumer awareness about the benefits of stevia, particularly next generation varieties. QNET India's "Healthy Living with Natose Stevia" campaign exemplifies this effort, promoting reduced sugar intake and healthier alternatives.

Strategic Growth Opportunities in the Next Generation Stevia Market

• Beverage Industry Innovation: The largest growth opportunity lies in the beverage sector, including carbonated soft drinks, juices, functional drinks, and flavored waters. Next-generation stevia's improved taste profile allows for significant sugar reduction without compromising flavor, appealing to health-conscious consumers and meeting regulatory requirements.
• Dairy and Confectionery Reformulation: Significant opportunities exist in reformulating dairy products (yogurts, flavored milk) and confectionery (chocolates, candies). Next-generation stevia enables manufacturers to offer reduced-sugar or sugar-free options while maintaining sweetness and texture, catering to health trends without sacrificing indulgence.
• Bakery and Cereal Products: Expanding the use of next generation stevia in bakery items (bread, cakes, cookies) and cereal-based products is a key growth area. Overcoming formulation challenges to achieve desired texture and browning while ensuring optimal sweetness will unlock substantial market potential.
• Nutraceuticals and Pharmaceuticals: The demand for natural, low-calorie sweetening agents in dietary supplements, vitamins, and pharmaceutical products offers a strategic opportunity. Next-generation stevia can enhance palatability for health-conscious consumers and patients requiring sugar-free options, improving product appeal and compliance.
• Tabletop Sweeteners and Blends: The direct-to-consumer market for tabletop sweeteners and baking blends incorporating next generation stevia continues to be a strong growth area. Offering convenient, high-quality, and great-tasting alternatives to sugar for home use directly addresses individual dietary needs and preferences.

Next Generation Stevia Market Drivers and Challenges

The factors responsible for driving the next generation stevia market include:

• Rising Health Consciousness and Sugar Reduction Trends: A primary driver is the global consumer shift towards healthier lifestyles, with a strong emphasis on reducing sugar intake to combat obesity, diabetes, and other health issues. Next-generation stevia, being a natural, zero-calorie sweetener, directly addresses this growing demand.
• Improved Taste Profile of Next-Generation Stevia: The significant reduction or elimination of the bitter aftertaste traditionally associated with stevia, through the development of high-purity glycosides like Reb M and Reb D, is a crucial driver. This improved taste facilitates broader adoption in mainstream food and beverage products.
• Favorable Regulatory Approvals: Increasingly positive regulatory stances and approvals for novel steviol glycosides produced via fermentation or bioconversion in major markets (e.g., North America, Europe) are accelerating market growth. These approvals provide manufacturers confidence to innovate and reformulate products with stevia.
• Growing Demand for Natural and Clean Label Ingredients: Consumers are increasingly seeking products with natural, plant-based ingredients and transparent, "clean" labels. Next-generation stevia, derived from the stevia plant, aligns perfectly with this trend, making it an attractive alternative to artificial sweeteners.
• Technological Advancements in Production: Innovations in bioconversion and fermentation technologies for producing steviol glycosides offer scalability, cost efficiency, and higher purity. These advancements are making next generation stevia more competitive and accessible, driving down production costs and increasing supply.

Challenges in the next generation stevia market are:

• Cost Competitiveness Against Artificial Sweeteners: Despite advancements, next generation stevia can still be more expensive to produce than established artificial sweeteners (e.g., sucralose, aspartame). This cost disparity can be a barrier for mass-market adoption in price-sensitive product categories.
• Formulation Complexities in Food Applications: Integrating stevia effectively into complex food matrices like baked goods and dairy can be challenging. Achieving desired texture, bulk, and browning properties while ensuring optimal sweetness without off-notes requires extensive R&D and specialized formulation expertise.
• Consumer Awareness and Education: While improving, there's still a need for greater consumer education about the benefits and improved taste of next generation stevia, distinguishing it from earlier generations that sometimes had a poor taste perception. Misconceptions can hinder broader acceptance.

List of Next Generation Stevia Companies

Some of the next generation stevia companies profiled in this report include:

• Cargill
• PureCircle
• GLG Life Tech Corporation
• Ingredion Incorporated
• SweeGen

Next Generation Stevia Market by Segment

Type [Value from 2019 to 2031]:

• Steviol Glycosides
• Rebaudioside A
• Rebaudioside D
• Stevioside
• Others

Formulation Type [Value from 2019 to 2031]:

• Liquid Stevia
• Powdered Stevia
• Granulated Stevia
• Stevia Blends
• Stevia Concentrates

Region [Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country-wise Outlook for the Next Generation Stevia Market

• United States: The U.S. market is a major adopter of next generation stevia, with increasing consumer demand for clean-label, sugar-reduced products. Regulatory approvals, like those for EverSweet, are facilitating broader incorporation into beverages, dairy, and confectionery, driving significant product reformulation and innovation.
• China: China leads the Asia-Pacific stevia market, driven by a large population and increasing health consciousness regarding sugar consumption. As a major producer and exporter, China is heavily investing in advanced extraction and bioconversion methods to meet both domestic and international demand for high-purity steviol glycosides.
• Germany: Germany market for next generation stevia is robust, fueled by a strong health and wellness trend and government initiatives to reduce sugar. Regulatory approvals in Europe are allowing for greater use in soft drinks and dairy, with consumers actively seeking natural, low-calorie alternatives to sugar.
• India: India market is witnessing a growing awareness of healthier alternatives, with campaigns promoting stevia as a sugar substitute. While domestic production of conventional stevia is significant, the market for next generation varieties is emerging, driven by a focus on reducing sugar intake among health-conscious consumers.
• Japan: Japan is a significant consumer of stevia, driven by a long-standing preference for natural sweeteners and a focus on functional foods. Japanese companies are at the forefront of developing advanced steviol glycosides and blends, particularly for use in sports and functional drinks that cater to health-conscious consumers.

Features of this Global Next Generation Stevia Market Report

• Market Size Estimates: Next generation stevia market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
• Segmentation Analysis: Next generation stevia market size by various segments, such as by type, formulation type, application, end use, and region in terms of value ($B).
• Regional Analysis: Next generation stevia market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different type, formulation type, applications, end use, and regions for the next generation stevia market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of the next generation stevia market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

This report answers the following 11 key questions: