Global Stevia Dairy Product Market - Forecast(2023 - 2028)

Global Stevia Dairy Product Market Overview

The Global Stevia Dairy Product Market size is estimated to reach $1.1 billion by 2027. Furthermore, it is poised to grow at a CAGR of 8.7% over the forecast period of 2022-2027. Stevia has been a natural sweetener that has been growing in its demand owing to its beneficial nutrient profile as compared to sucrose or corn syrup. The stevia plant belongs to the sunflower family, and its leaves contain sweet-tasting compounds known as steviol glycosides. Further, around 50 steviol glycosides have been identified, and each plant has approximately 9 unique of these compounds, and is approximately 200-350 times sweeter than sugar. Stevia has been of the great choice to the marketers as it allows to maintain stability throughout the pasteurization process, hence its usage can be adopted in various end products, such as yogurts-flavored milk-ice creams, and others. The sugar substitute often works best in combination with saccharin or cyclamate or others as it tends to lower the bitterness and astringency. The growing burden of diseases amongst the groups of societies along with manufacturers' preference to incorporate stevia alone or with the cooperation of another form of high-intensity sweeteners to increase the market reach has been identified as the key driver for the Global Stevia Dairy Products Industry.

Global Stevia Dairy Product Market Report Coverage

The report: “Global Stevia Dairy Product Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Global Stevia Dairy Product Market.

By Product Types: Yogurt, Flavored Milk, Ice Creams, and Others.
By Distribution Channel: Offline Stores and Online Stores.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of World (the Middle East and Africa).

Key Takeaways

• Geographically, North America’s stevia dairy products market held a dominant market share in the year 2021. It is owing to a robust product launch observed within the region, additionally, stevia plantation takes place within the likes of countries likes Mexico and the U.S. which allows for better market reach. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027, the growing taste preferences within the likes of countries such as India and China would allow for better market penetration.
• The growing burden of diseases amongst the masses of societies along with manufacturers' preference to incorporate stevia alone or with the cooperation of other forms of high-intensity sweeteners to increase the market reach has been a key driver for the market. However, complex challenges faced by manufacturers to maintain texture-indulgence and mouthfeel along with the general sentiment of sweetness impede the overall market growth.
• A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Global Stevia Dairy Products Market Report. 

Global Stevia Dairy Product Market Segment Analysis- By Product Type

The global stevia dairy product market based on product type can be further segmented into Yogurt, Flavored Milk, Ice Creams, and Others. Yogurt held a dominant market share in the year 2021. Strong consumer demand has been noticed for yogurt owing to its ability to tick the necessary nutrient and healthy lifestyle marks such as being low-in calorie, reduced fats, and ability to provide longer satiety. Additionally, stevia integration with such necessities allows for robust product innovation. As per a sensory study, around 50% of sugars present in a strawberry-sugar flavored yogurt can be readily substituted by stevia (rebaudiana A) without any perceivable taste changes. Furthermore, yogurt’s nutrient profile is fulfilled with immense proteins, as per a Kerry Group study, consumers are ready to pay a premium of 10-15% if the products are positioned and claimed as “fortified with proteins”. Owing to these reasons, the segment held a dominant share. However, Ice-Creams are estimated to be the fastest-growing, with a CAGR of 9.7% over the forecast period of 2022-2027. Ice-Cream has been the most consumed and popular frozen dessert, and its acceptance is high owing to its robust sucrose presence. Moreover, industry experts believe that stevia’s natural label claim provides the “aware” consumers a chance to change their consumption patterns, and incline towards beverages that will fulfill their nutritional goals while simultaneously working on taste fulfillment.

Global Stevia Dairy Product Market Segment Analysis- By Distribution Channel

The global stevia dairy products market based on distribution channels can be further segmented into offline stores and online stores. Online Stores held a dominant market share in the year 2021. Online retail channels picked up during the year owing to pandemics. People have started to adapt to the new normal, where activities such as work from home and college from home have become prevalent. Additionally, recent surveys from Chicory Third Annual Grocery Usership revealed that digital platforms are being preferred more than offline stores. As per the participants of the survey, around 72% purchased basic groceries items online in the last 90 days, while around 52% said that they have placed grocery orders online at least once every week. Furthermore, online retail is estimated to be the fastest-growing, with a CAGR of 9.4% over the forecast period of 2022-2027. Convenience was ticked by maximum respondents, while around 46% of respondents cited convenience or time constraints as their primary motivation for ordering online, and only around 10% governing that reason for online purchases is a resultant of health worries. Moreover, the CEO of Chicory feels that digital grocery shopping is here to stay, and consumers would continue to prioritize their convenience over everything else. Owing to these trends, the sales would grow exponentially through these channels.

Global Stevia Dairy Product Market Segment Analysis- By Geography

The global stevia dairy product market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. North America held a dominant market share of 35% in the year 2021. The region has been growing extremely wary of its food consumption trends and is inclining towards products that are free from processed sugars or are free from sugar. As per CDC, around 11.4% of the U.S. population have diabetes, and an even greater percentage is on the brink to develop type-1 diabetes. However, a major portion of consumers still have their preferences tied towards ice-creams and flavored drinks that have high amounts of sucrose, hence, product manufacturers are aligning products in the market which can substitute some amounts of sucrose with stevia. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. Product innovations along with spectacular demand and production from the likes of China and India would allow the market of such alternatives to grow. Additionally, the region has countries with various forms of CVDs, which would push them to consume dairy products with stevia blend.

Global Stevia Dairy Product Market Drivers

The growing disease burden pertaining to high sugar consumption and overall pessimistic sentiments regarding the use of processed sugar has been a key driver for the market

Obesity has been a growing concern and has taken grip over the young and adults alike. Sugar and processed sugar products have been often linked with incidences of obesity and subsequent diabetes. Moreover, as per CDC, around 40% of American adults aged over 20 have been termed as obese, and similar statistics follow the rest of the world. WHO and other allied health service authorities are now pushing forward to introduce a sugar tax on manufacturers-to reduce their heavy alliance over-processed sugar in any or every product. For example, as per the Australian Medical Association- a tax of 40 cents per 100 grams of sugar can help in reducing the consumption of non-nutritional sweetener drinks by up to 12-18%. The said move has taken immense traction since AMA announced that around 2.4 billion liters of sugary drinks are consumed each year in the said region. High sugar diets have led to diabetes around the world-thereby with the availability and use of natural sugar substitutes such as stevia with zero additional calories and no incidence of spiking blood glucose levels can successfully aid the growing concern amongst the world authorities.

A strong association of dairy products within developing regions owing to their medicinal properties along with health consciousness pertaining to obtaining less sugary or processed-sugar-free products has allowed the market to grow

Dairy drinks and beverages have held a close association in developing and developed regions and countries within. The association has been closely knitted owing to the various functional advantages of dairy when compared to any other form of food or drink. Further, dairy products are a powerhouse of nutrients which include calcium, potassium, phosphorus, protein, vitamin A, D, B12, riboflavin, and niacin. The listed ingredients have been hovered and connected with covering a unique health aspect. For example, osteoporosis, a common form of bone deformation condition affects around 12.6% of the U.S. population and is primarily caused by low calcium intake. Doctors across the world have often attributed those good amounts of dairy milk or other products to allow for stronger bones. The production capacity of dairy has been growing in the likes of countries like India which will allow an easy availability of raw materials to end product users. As per an economic survey, India’s milk production capabilities have grown by around 35.61% within the last six years, and further projection estimates that the growth is not going to slow down soon. International commitments and local demand would allow for better integration of stevia with milk products.

Global Stevia Dairy Product Market Challenges

The growing prevalence of lactose intolerance supplemented by the higher interest of people towards cruelty-free products such as vegan sources of milk has impeded market growth

Lactose intolerance has gripped the market and has become a bottleneck for various product manufacturers. As per global estimates, around 68% of the world population suffers from lactose intolerance. Furthermore, plant-based dairy alternatives are growing more diverse, by offering competitive pricing and healthy label claims such as of that being cruelty-free, gluten-free, fortified by proteins and essential nutrients, and non-GMO induced products. As per the plant-based food association, plant-based milk grew at a robust pace of 20.4% from 2019. Additionally, International Dairy Food Association, export delays, and other supply chain challenges within the dairy segment cost $1.5 billion to the industry. Lastly, stevia has been used in modulation with sugar or other sweeteners which makes the pure benefits of it being sugar-free false, while if only stevia is used in dairy products, it leaves a bitter after taste which has been a key problem for manufacturers.

Global Stevia Dairy Product Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Global Stevia Dairy Product Market. The top 10- Global Stevia Dairy Product Market companies are:

1. Fonterra Co-Operative Group,
2. LACTALIS Ingredients,
3. Schrieber Foods Inc,
4. Danone Inc,
5. Saputo Inc.
6. Alpen Dairies
7. Lactoland
8. Miraka
9. Dairy America
10. Nestle S.A

Recent Developments

• In January 2022, Codex Alimentarius- International Food Standard Safety Authority adopted the specification of four stevia technologies- which includes Sweegen’s Bioconversion. The significance of the adoption is that there is now a more streamlined approach to regional adoption of new production technologies. This will provide greater access to less common and better-tasting steviol glycosides at scale and a more sustainable supply of sugar-like tasting ingredients.
• In September 2021, Nascent Health Sciences LLC received a “no-questions” letter from the U.S. FDA in response to its GRAS notice for the So-Pure Steviol Glucosides. The following nod would allow the company to expand its portfolio and would allow for better end-product integration. The nod provides the end-product industries to be assured that stevia supply is not only grown naturally and sourced sustainably but is also safe and backed by stringent regulatory approvals.
• In April 2020, Ingredion Inc and Pure Circle Limited have announced that the former company would take up to 75% of the stake in the latter’s company. Pure Circle is a leading producer and innovator of stevia sweeteners for the global food and beverage industries. Ingredion is a leading global provider of plant-based ingredient solutions to diversified industries. Ingredion has further communicated that sugar reduction has been one of Ingredion’s five specialties and stevia would be a core product within their sugar reduction portfolio.

Relevant Titles

Stevia Rebaudiana Market- Forecast (2022-2027)

Report Code- AGR 0004

Stevia Market- Forecast (2022-2027)

Report Code- FBR 57984

Global Stevia Sugar Blends Market- Forecast (2022-2027)

Report Code- FBR 37626 

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