Ohio Ag Connection - Stevia Demand to Grow 11+ Percent Annually thru 2021

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Stevia Demand to Grow 11+ Percent Annually thru 2021
Ohio Ag Connection - 08/17/2017

Demand for stevia is forecast to reach $120 million in 2021, after yearly gains of over 11%. Overall growth will be slower than that seen during the 2011-2016 period, reflecting changes in the factors underlying advances, such as trends in the beverage industry -- including declining carbonated soft drink (CSD) production and the growing popularity of unsweetened ready-to-drink tea and coffee -- and issues with the aftertaste associated with Reb A. These and other trends are presented in Natural Alternative Sweeteners Market in the US, a new study from The Freedonia Group, a Cleveland-based industry research firm.

The largest market for stevia in 2016 was food, accounting for 60% of overall demand at $42 million. Demand for stevia in the food market is forecast to expand around 10% yearly through 2021 to $68 million, as better tasting and higher value rebaudioside fractions become more widely available.

Beverage applications contributed 37% of total stevia demand. The primary outlet was noncarbonated beverages, in particular juice drinks, flavored waters, and nut milks. CSD applications were more limited, as consumer uptake of stevia-sweetened diet soft drinks has been lukewarm due to consumer familiarity with artificial sweeteners and taste issues with stevia sweeteners. Personal care and pharmaceutical applications will remain small outlets for stevia through the forecast period.

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