Global Stevia Market

Stevia Market: Global Industry Analysis and Opportunity Assessment 2014 - 2020

Parent Market Analysis

Sweetener market comprises ofcaloric and non-caloric sweeteners. Among which caloric sweetener includes sucrose, table sugar, raw sugar, and others. Whereas non caloric sweetener have been further segmented into natural as well as synthetic sweeteners. The natural sweeteners are further classified as low potency and high potency sweetener whereas synthetic sweeteners include advantame, aspartame, sucralose and others. Increased consumer awareness towards low caloric food across the globe has changed consumer preferences for food resources which have low carbohydrates and offer high energy. Moreover, shift in consumer preferences for sugar substitute products is a prime concern for consumers and thus has led to transitions in the sweetener market. Additionally, continuous product launches catering to demand for antioxidants and natural ingredient products is expected to support the robust growth for plant-based sweeteners such as stevia in the near future.

Stevia Market Overview

Stevia holds an essential place under sweeteners segment owing to its benefits such as low-calorie and high protein ingredient. Stevia market is segmented on the basis of extract type and application. According to the extracts, the market is further segmented as liquid, powder, and leaf. The varied applications of stevia as a food ingredient include bakery, dairy food products, beverages, packaged food products, dietary supplements, confectionery, and others. Among the extracts type, liquid extracts are expected to record a higher CAGR as compared to the other extracts from 2014 to 2020. However, by application, table top sweeteners and dairy food products sub-segments are expected to collectively witness a substantial growth during the forecast period i.e. 2014–2020.

Market Value Forecast

Globally, the sweetener market is estimated to be US$ 68.1 billion in 2014 and expected to reach at US$ 95.9 billion by 2020, registering a CAGR of 5.7% during 2014-2020. Whereas, stevia market is estimated to value at US$ 347.0 million in 2014 and expected to reach US$ 565.2 million by 2020, reflecting a CAGR of 8.5% during the forecast period. In terms of volume consumption of stevia it is expected to reach 8,506.9 tonnes by the end of 2020, registering an annual growth of around 7-8% during the forecast period.

Extract Type Analysis

On the basis of extract type stevia market segmentation includes liquid, powder, and leaf extract. Liquid extracts are further sub-segmented as clear liquid extract and dark liquid extract. Also, powder stevia extracts are sub-segmented into stevia blends, sweet glycosides (40-50%) and sweet glycosides (80-95%). Among the various extract types, powder extracts contribution to the overall pie is expected to dominant during the forecast period, accounting for 65% of the overall stevia market share by 2020. However, liquid extracts segment is experiencing a robust CAGR of 8.7% during the forecast period. This growth is supported by extensive use of stevia liquid in direct consumption as table top sweetener coupled with assorted stevia-based liquid products globally.

By Application Analysis

On the basis of application or use the stevia market include dairy food products, bakery products, dietary supplements, confectionery, table top sweeteners, beverages, packaged food products, snacks, and others. Among all these segments packaged food products, beverages and table top sweeteners are collectively expected to account for around 72.0% of the global stevia market.

The dairy food products segment is further sub-segmented as ice cream, flavoured milk and yogurt whereas bakery sub-segment includes bread & roll, biscuit, cakes and others. Beverages include energy drinks, soft drinks, hot drinks, flavoured drinks and naturally sweetened water. In addition, packaged food products segment includes jam, sauce, chilled food, frozen food, nutritional products and pickle. Snacks category includes potato chips, processes snacks and other savoury snacks. The others segment comprises organic food and personal care products.

In terms of revenue contribution, the dairy food products and bakery segment are expected to record significant growth, respectively during the forecast period. In addition, beverages and dietary supplements demand collectively accounts for 40.0% of the overall pie by 2020. Thus, key focus sectors for companies to enhance their product offerings in order to penetrate the market globally.

Stevia Market

Regional Analysis

Geographically, the global stevia market analysis focusses on North America, Latin America, Eastern Europe, Western Europe, Japan, Asia Pacific Excluding Japan, Japan and Middle East and Africa (MEA). North America represents the most lucrative market, followed by Latin America and Asia Pacific Excluding Japan. North America is expected to register a CAGR of 9.8% accounting for US$ 146.0 million by 2020. In Asia Pacific, China and India owe a significant contribution to growth of Asia Pacific stevia market and thus, represent opportunities for manufacturers in the near future. MEA may represent as a potential market due to increasing disposable income and modern retail infrastructure during later years of forecast period i.e. 2018-2020. Japan records comparatively less growth. This is due to soaring prices of stevia coupled with increased exports of stevia from Japan to other.

Key Trends

Increase awareness about health benefits of stevia is expected to drive the demand for stevia-based products in the near future. In addition, providing lucrative margins to distributors is expected to strengthen the partnership across the value chain. Increasing product visibility in modern retail formats as retail shelf space and product availability is predicted to create demand for stevia based products among the consumers across the globe. Since, stevia formulation is a complex process strengthening raw material procurement to finished product is a concern for companies in this market. Recognition of stevia as an ingredient in food and beverages sector, increasing awareness through online marketing, and strengthening supply chain particularly in countries such as India, Brazil, and Russia are key focus areas for companies in this market.

Competitive Players Outlook

The global stevia market competitive landscape includes suppliers such as Nestlé S.A., The Coca-Cola Company and PepsiCo Inc. and producers such as Cargill Inc., Evolva Holding S.A., PureCircle Ltd., Stevia Corp., Ingredion Inc., GLG Life Tech Corp. and Tate & Lyle Plc.

This Future Market Insights report examines the ‘Stevia’ market for the period 2014–2020. The primary objective of the report is to offer insights on the advancements in stevia market and its increasing contribution to the overall sweetener market, which has given rise to a futuristic market: Stevia, which is significantly transforming global businesses and enterprises. Shifting consumer preference for natural sweeteners is a major factor fuelling the growth of this market. Furthermore, rising new stevia-based product offerings across various end-use industries is expected to bolster growth of the global stevia market by 2020. Additionally, increasing popularity of such products is attributed to growing modern retail, urbanization, health concerns and changing preferences among consumers are expected to drive the growth of stevia market during the forecast period.

The stevia market report starts with an overview of sweetener market. In addition, this section includes FMI’s analyses of the key trends, drivers and restraints from the supply, demand and economy side, which are influencing the stevia market. Impact analysis of key growth drivers and restraints, based on the weighted average model is included in the stevia Market report to better equip and arm clients with crystal clear decision-making insights.

The global stevia market is segmented on the basis of extract type and application. On the basis of extract type, the market is segmented as liquid, powder and leaf extract. Liquid extracts are further sub-segmented as clear liquid extract and dark liquid extract. Also, powder stevia extracts are sub-segmented into stevia blends, sweet glycosides (40-50%) and sweet glycosides (80-95%). A detailed analysis has been provided for every segment in terms of market size.

In the next section, FMI covers the stevia market performance in terms of application, the stevia market is segmented into dairy food products, bakery products, dietary supplements, confectionery, table top sweeteners, beverages, packaged food products, snacks, and others. A detailed analysis has been provided for every segment in terms of market size.

As highlighted earlier, the stevia market is segmented on the basis of extract type, application and regions. All these segments are included in this section to make the study more comprehensive. The subsequent sections provide detailed analysis on the extract type and application of the stevia market report.  The sections provide detailed analysis covering key trends, absolute dollar opportunity and BPS Analysis.

The next section of the report highlights stevia adoption by regions. It provides a market outlook for 2014–2020 and sets the forecast within the context of the stevia ecosystem, including the new technological developments as well as product offerings in the stevia market. This study discusses the key region trends contributing to growth of the stevia market globally, as well as analyses the degree at which drivers are influencing this market in each region. Key regions assessed in this report include North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan (APEJ), Japan and Middle East and Africa.

All the above sections, by extract type, by application or by regions, evaluate the present scenario and the growth prospects of the stevia market for the period 2014 –2020. We have considered 2013 as the base year and provide data for the trailing 12 months.

To calculate the stevia market size, we have considered revenue generated by the stevia producers. The forecast presented here assesses the total revenue by value across the stevia market. In order to offer an accurate forecast, we started by sizing the current market, which forms the basis of how the stevia market will develop in the future. Given the characteristics of the market, we triangulated the outcome of three different types of analyses, based on supply side, downstream industry demand and economic envelope.

In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the stevia market.

As previously highlighted, the stevia market is split into a number of segments and sub-segments. All the stevia segments in terms of extract type, application and regions are analysed in terms of Basis Point Share to understand individual segment’s relative contributions to market growth. This detailed level of information is important for the identification of various key trends of the stevia market.

Also, another key feature of this report is the analysis of all key segments and sub-segments in terms of absolute dollar. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the stevia market.

Furthermore, to understand key growth segments in terms of growth & adoption of stevia-based products along with preferred application across the globe in the near future, Future Market Insights developed the Stevia Market Attractiveness Index. The resulting index should help providers identify real market opportunities.

In the final section of the report, stevia Competitive landscape is included to provide report audiences with a Dashboard view, based on categories of provider in the value chain, presence in stevia product portfolio and key differentiators. Key categories of providers covered in the report are stevia suppliers and producers. This section is primarily designed to provide clients with an objective & detailed comparative assessment of key providers specific to a market segment in the stevia value chain and the potential players for the same. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on in-depth assessment of capabilities and success in stevia marketplace. Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the stevia space. Key competitors covered in terms of suppliers are Nestlé S.A., The Coca-Cola Company and PepsiCo Inc. and producers are Cargill Inc., Evolva Holding S.A., PureCircle Ltd., Stevia Corp., Ingredion Inc., GLG Life Tech Corp. and Tate & Lyle Plc.