Stevia market to expand at 8.5% CAGR through 2020

THE stevia industry will grow at 8.5% CAGR from 2014 through 2020, faster than the overall sweetener market, which is expected to grow at 5.7% CAGR during the same period.

A new report titled "Stevia Market: Global Industry Analysis and Opportunity Assessment 2014 - 2020" forecasts the stevia sector will reach US$565.2 million by 2020 from an estimated value of $347.0 million in 2014. Meanwhile, the sweetener industry will reach $95.9 billion by 2020 from $68.1 billion in 2014.

Stevia volume consumption is projected to grow between 7% and 8% annually during the forecast period, with total volume expected to reach 8,506.9 tons by end-2020.

The stevia market can be divided into liquid, powder, and leaf extract based on extract type. Liquid extracts are further subsegmented into clear liquid extract and dark liquid extract, while powder stevia extracts are further classified into stevia blends, sweet glycosides (40%-50%), and sweet glycosides (80%-95%).

Powder extracts will dominate the stevia line through 2020 with a market share of 65% by the end of the forecast period. Liquid extracts, however, will post fast growth at 8.7% CAGR, owed to extensive use of stevia liquid in direct consumption as tabletop sweetener coupled. The rising supply of assorted stevia-based liquid products globally will also contribute to this growth.

In terms of application or use, the stevia market comprises dairy food products, bakery products, dietary supplements, confectionery, tabletop sweeteners, beverages, packaged food products, snacks, and others.

Packaged food products, beverages, and tabletop sweeteners are projected to represent 72% of the global market.

In terms of geographical markets, with the market analysis covering North America, Latin America, Eastern Europe, Western Europe, Japan, the Asia-Pacific excluding Japan, and Middle East and Africa (MEA), North America represents the most lucrative market for stevia. Latin America and the Asia-Pacific excluding Japan follow.

The North American stevia market is forecast to hit US$146.0 million by 2020 for a CAGR of 9.8%. In the Asia-Pacific, China and India will represent growth opportunities for stevia products.

Increasing disposable incomes and modern retail infrastructures, in particular during the latter years of the forecast period, will position MEA as a potential market for stevia. In Japan, however, growth will slow down due to soaring prices and rising exports to other countries.