Latin American Stevia Market Size (2024-2030)

The Latin American stevia market was valued at USD 71 million in 2023 and is projected to reach a market size of USD 139.60 million by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 10.14%. 

In Latin America, stevia is primarily used in the soft drink and sports nutrition segments. These two segments together contribute to over half of the stevia applications in Latin America. Additionally, dairy is emerging as a significant application segment for natural sweeteners in these regions, accounting for over 12% of stevia applications. The Latin American stevia market benefits from the abundance of raw materials readily available for processing. The stevia plant is native to Brazil and Paraguay. Paraguay is the largest producer of natural sweeteners in the region, accounting for over three-fourths of total stevia production in Latin America. Paraguay is followed by Brazil, Colombia, and Argentina as the leading producers in the region.

Stevia, a natural sweetener and sugar substitute extracted from the leaves of the Stevia rebaudiana plant, is renowned for its zero-calorie attribute. It is extensively used in various products, such as beverages, baked goods, confectionery, dietary supplements, and as a tabletop sweetener. Stevia's popularity is primarily attributed to its ability to provide a sweet taste without the added calories or adverse health effects associated with sugar and artificial sweeteners.

Key Market Insights:

Stevia, a plant native to South America, yields naturally sweet leaf extracts used to sweeten food and beverages. Commercially, it is processed into a white powder containing intensely sweet glycosides derived from stevia leaves, serving as a non-caloric sweetener. Stevia's unique taste profile and sweetness intensity, 200 to 350 times greater than regular sugar, make it a preferred natural sweetener for many food and beverage companies aiming to enhance taste while reducing calories.

The Latin American stevia market is driven by its use as a sugar substitute across various applications, including dairy, bakery, confectionery, tabletop sweeteners, beverages, and convenience foods. Stevia's appeal lies in its ability to provide sweetness without adding significant calories, making it a desirable clean-label ingredient. Market growth is fueled by increasing product launches and innovations in the food and beverage industry, meeting the demand for sugar alternatives driven by concerns about diabetes and obesity.

Stevia cultivation is emerging in many countries, offering a wide range of varieties with varying wholesale and retail prices. Generally, stevia is more costly than artificial sweeteners like saccharin, aspartame, and sucralose.

Latin American Stevia Market Drivers:

Health and wellness trends are boosting the market.

Rising health concerns regarding sugar consumption, coupled with the escalating rates of obesity and diabetes, have prompted consumers in Latin America to increasingly seek healthier alternatives to traditional sweeteners. This surge in demand for stevia-based products is being further propelled by growing awareness of the benefits of natural ingredients over synthetic ones. Additionally, the industry is gaining momentum from the implementation of government regulations aimed at limiting sugar intake. Measures such as front-of-pack warnings regarding high sugar, salt, and fat content on products in countries like Chile, Peru, and Uruguay are contributing to the expansion of the stevia market in the region.

The expanding application of stevia in various industries is facilitating the expansion.

Stevia's versatility is driving its expanding use across diverse industries. In the food and beverage sector, it's becoming a staple in health-focused products like sugar-free beverages, low-calorie snacks, and diet bars. Its role in pharmaceuticals as a natural sweetener in syrups and medications is also on the rise, catering to the demand for clean-label alternatives. Furthermore, in the cosmetic industry, stevia's anti-inflammatory and antioxidant properties are being harnessed to enrich skincare products, elevating their natural appeal and effectiveness. This trend underscores stevia's growing importance and potential across multiple sectors.

The growing diabetic population is fueling the Latin American stevia market.

Over the years, due to a lifestyle change, the prevalence of diabetes has seen a drastic rise. Stevia's low glycemic index is a key factor driving its adoption, particularly among diabetic patients. With its minimal impact on blood sugar levels, stevia offers a viable alternative to traditional sweeteners for individuals managing diabetes or looking to regulate their blood sugar.

Latin America Stevia Market Restraints and Challenges:

Fluctuation in stevia leaf prices presents a significant obstacle to the market's expansion.

The fluctuation in stevia leaf prices poses a significant challenge for the market. This volatility is primarily driven by seasonal fluctuations and variations in crop yield, impacting the availability of stevia leaves. As a result, the industry faces uncertainty in meeting the growing demand for stevia products. Decreases in stevia cultivation exacerbate this issue, potentially leading to supply shortages and subsequent price increases. Addressing this price instability is crucial for sustaining the long-term growth and viability of the stevia industry.

One of the primary hurdles faced by stevia extract manufacturers is the taste profile of their products.

Traditional sugar remains the preferred choice due to its taste; sugar substitutes like stevia have struggled to match its flavor appeal. Initially, products were made using highly purified rebaudioside, which often left a bitter aftertaste, limiting its acceptance as a sugar alternative. However, advancements in farming techniques, conventional plant breeding programs, and extraction technologies have led to the development of newer stevia extract sweeteners with improved taste profiles and no bitter aftertaste. Despite these advancements, the use of advanced extraction methods for these improved stevia varieties comes at a higher cost.

Regulatory uncertainty regarding stevia's usage in specific foods can be a hindrance.

Ambiguous regulations on stevia use in specific food categories could slow market expansion for the sweetener, impacting its adoption and innovation in the food industry. Clarifying these regulations is essential for unleashing stevia's full potential and promoting its growth in the market.

Latin American Stevia Market Opportunities:

The rise of stevia in natural personal care products is providing the market with many possibilities.

The increasing use of stevia in natural personal care products represents an emerging opportunity for market players to expand their product portfolios and cater to consumer preferences for natural ingredients, potentially driving growth in the natural personal care products market.

The surge in demand for clean-label products has proven to be beneficial.

Clean labeling of food has gained significant prominence to avoid allergies and other serious repercussions. Stevia's natural origin aligns with the clean label trend, offering manufacturers an opportunity to meet consumer preferences for transparent and wholesome ingredients, potentially enhancing market appeal and driving product demand.

LATIN AMERICA STEVIA MARKET REPORT COVERAGE:

Latin America Stevia Market Segmentation:

Latin America Stevia Market Segmentation: By Extract Type:

• Whole Leaf
• Powdered
• Liquid

The stevia market is segmented into powders, liquids, and leaves, with the powder form emerging as the most dominant and sought-after segment due to shifting consumer preferences. Derived from the Stevia rebaudiana plant, powder stevia serves as a calorie-free alternative to sugar, meeting the demands of health-conscious consumers globally. This form undergoes meticulous processing to isolate and refine sweet compounds from the leaves, resulting in a highly concentrated and convenient sweet solution. Its popularity stems from its ability to efficiently replace larger quantities of sugar, offering both consumers and manufacturers a convenient and efficient alternative. Moreover, powdered stevia extracts align with the clean label trend, further bolstering their appeal in the market as transparent and wholesome ingredients. The liquid extract segment is set to experience the fastest growth, driven by consumer preferences for less processed foods. Liquid extract, known for its minimal processing, appeals to individuals seeking more natural alternatives. This trend extends to skincare, particularly in face masks targeting wrinkle reduction and skin inflammation. The rising demand for stevia liquid extract in skincare applications underscores its potential to cater to consumer needs for natural and effective ingredients, driving growth in this segment.

The utilization of stevia leaves in food processing and as garnishes in various food products, including ice cream, sauces, desserts, yogurts, soft drinks, juice, and bread, has surged in popularity, consequently driving demand for stevia leaves. Moreover, components such as silica found in stevia leaves contribute to enhancing connective tissues, hair, nails, and skin health, with potential benefits for conditions like seborrhea, eczema, and dermatitis. This multifaceted utility of stevia leaves is expected to fuel revenue growth in this segment as consumers increasingly seek natural ingredients with potential health benefits in their food choices.

Latin America Stevia Market Segmentation: By Application

• Bakery & Confectionery
• Dairy Products
• Food and Beverages
• Tabletop Sweetener
• Oral Care
• Pharmaceuticals
• Others

The food and beverage segment has the largest market size. Stevia serves as a vital component in zero- or low-calorie beverages, offering health benefits while providing an alternative to traditional sweeteners. Its use expands beverage choices, allowing consumers to manage their caloric, carbohydrate, or sugar intake effectively. Particularly in beverages, stevia is preferred as it eliminates the need for the bulking properties of sugar. Widely utilized in various categories such as diet carbonated beverages, chewing gums, ice creams, flavored water, soft drinks, fruit juices, ready-to-drink options, and sports and energy drinks, stevia stands out as one of the most common natural sweeteners, catering to the demands of health-conscious consumers. The bakery and confectionery segment is the fastest-growing. Stevia offers numerous benefits in bakery and confectionery products owing to its unique physical and chemical properties. While sucrose, dextrose (glucose), and corn syrups are traditionally fundamental sweeteners in confectionery production, stevia's properties are increasingly integral to formulations in items like hard candy, caramel, taffy, and chewing gum, chocolate, and gum candies. Despite the widespread use of traditional sweeteners due to their low cost and availability, stevia's advantageous characteristics are becoming increasingly central to the creation of sweetened confections.

Stevia serves as a viable alternative to sucrose in the dairy industry, offering advantages that have significantly influenced its adoption. Recognizing the potential to address childhood obesity concerns and stimulate milk sales, the International Dairy Association (IDEA) and the National Milk Producers Federation (NMPF) have urged the FDA to redefine milk and 17 other dairy products, such as sour cream and yogurt, potentially paving the way for wider use Stevia serves as a natural and low-calorie alternative to sugar and artificial sweeteners in tabletop sweeteners. It offers a sweetening power 200–300 times greater than sugar and is commonly used to enhance the sweetness of hot or cold beverages, sprinkle on fruits, and incorporate into various cooking and baking recipes. Its suitability for diabetics and individuals with phenylketonuria further highlights its appeal as a versatile and health-conscious sweetening option.

Latin America Stevia Market Segmentation: Regional Analysis:

• Brazil
• Argentina
• Colombia
• Chile
• Rest of Latin America

The Latin American stevia market is primarily fueled by key countries such as Brazil, Colombia, and Argentina. Brazil, due to its substantial consumer base and growing health awareness, is the largest market. Colombia's market is the fastest-growing, propelled by the prevalence of obesity and diabetes, prompting a transition towards healthier food options. Argentina, renowned for its strong agricultural industry, plays a significant role in both stevia production and export. Collectively, these countries drive growth and innovation within the Latin American stevia market.

COVID-19 Impact Analysis on the Latin American Stevia Market:

Customers became more health-aware and gravitated towards low-calorie or sugar-free food as a result of the COVID-19 epidemic. Therefore, the COVID pandemic's increased demand for sugar-reducing treatments and growing health consciousness among people worldwide have positively impacted the stevia industry. Post-pandemic, the market has continued to grow due to these fitness trends.

Latest Trends/ Developments:

In March 2022, Cargill's new platform, EverSweet + ClearFlo Stevia, was launched, combining the primary stevia sweetener, EverSweet, with other natural flavors, providing a wider range of choices for products.

Key Players:

1. Nestlé S.A.
2. The Coca-Cola Company
3. PepsiCo Inc.
4. Cargill Inc.
5. Evolva Holding S.A.
6. PureCircle Ltd.
7. Stevia Corp.
8. Ingredion Inc.
9. GLG Life Tech Corp
10. Tate & Lyle Plc