While until a few years ago, stevia was mainly known among industry insiders, EU approval of its use in food and drinks has resulted in a surge of new product innovations to capitalize on this new consumer demand. According to research by Mintel on natural sweeteners, the widespread rollout of products containing stevia resulted in a massive 400% increase in launches globally between 2008-2012 and 158% between 2011-2012.

With the only year-on-year increases in new product development, Europe is experiencing phenomenal growth and is now a key market driver for stevia. It accounted for a quarter (25%) of global new product launches containing stevia in 2012, up from just 4% in 2011. Meanwhile, Asia accounted for half (50%) of all introductions in 2012, but declined from 63% in 2011. North America accounted for 15% of new product launches in 2012, down from 21% in 2011 and Latin America accounted for 9% in 2012, down from 11% in 2011.

Recent growth has been fueled by dynamic product innovation across a range of categories. Some of the most widespread use of stevia is in the non-alcoholic beverages category, which accounted for 31% of the global products launched containing stevia in 2012 and the snacks category, accounting for 26%. Meanwhile, 13% of global product launches containing stevia were natural table-top sweetener alternatives to sugar and 7% were dairy products.

Increased concern over obesity levels could also present an opportunity for stevia in low-sugar and low-calorie food and drink, as it appears that sugar substitutes are still struggling against traditional sugar, especially when it comes to taste. In the U.S., more than half (57%) of consumers believe that natural sweeteners such as sugar or honey taste better than low-calorie alternatives and 44% agree that sweeteners leave an aftertaste or simply taste bad.

There are also positive signs for the future of the sector and the opportunity to respond to underlying consumer demand for simple, natural products. Indeed, as Mintel’s research shows, 55% of consumers in Germany, 47% in the U.K., 45% in France, 26% in Italy and 22% in Spain would be willing to try products made using alternative sweeteners. Moreover, 56% of consumers in the U.K. are interested in trying sweets with natural sugar alternatives.

Additionally, use of natural low- and no-calorie sweetener products has doubled in the past six years as consumers have become more familiar with them. According to Multi-sponsor Surveys, Inc., nearly three in 10 (28%) adults have consumed foods or beverages sweetened with natural low/no-calorie sweeteners in the past year, up from 14% in 2006. This increase has been driven primarily by increased use of stevia-sweetened products and to a lesser extent by increased use of agave.

The increase appears to be widespread. Adults of all ages—from Millennials to Matures—are using these new natural low/no calorie sweeteners more regularly. Older adults, who were initially slower to embrace these sweeteners, have made the biggest turnaround. The analysis noted that while increases are seen across all ages, use continues to be highest among the youngest adults, age 18-34. Use also peaks among women, upscale adults, dieters and diabetics.

However, the assessment found the shift toward natural low/no cal sweeteners is not without ramifications—artificial low/no-calorie sweeteners have taken a hit. The share of adults reporting past year use of any artificial low/no-calorie sweeteners declined from 65% in 2006 to 52% in 2012, with older adults (age 65+) being the slowest to change and remaining more loyal to their favored yellow or blue sweetener packets.

There are always skeptics, however, and 75% of adults still “don’t think any low/no-calorie sweeteners are completely natural.” This may explain why use of raw sugar has also been steadily growing to the point where 25% of adults now report regular use.
However, recent data from the U.S. Centers for Disease Control and Prevention’s (CDC) National Health and Nutrition Examination Survey, 2005–2010, shed light on the high level of sugar consumption among U.S. adults.

While the Dietary Guidelines for Americans, 2010 recommends limiting total intake of discretionary calories, such as sugars and solid fats, to 5–15% per day, CDC’s assessment found that U.S. adults receive approximately 13% of their calories from added sugars. Further, the report showed that more calories from added sugar were consumed through foods rather than beverages.

Race and level of income were also found to be key factors influencing overall sugar consumption. The report found that non-Hispanic black men consumed a larger percentage of total calories from added sugars (14.5%) than non-Hispanic white (12.8%) and Mexican-American men (12.9%). Non-Hispanic black women consumed the most calories, with 15.2% coming from added sugars, compared with 13.2% for non-Hispanic white women and 12.6% for Mexican-American women.

The report also established that the mean percentage of total calories from added sugars decreased with increasing age and increasing income.