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Stevia and Natural Sweeteners - US - August 2011

Stevia and Natural Sweeteners - US - August 2011

Stevia is a botanical that is part of the sunflower family. It’s marketed under several names and in several forms including powdered extracts and liquids. Stevia originally comes from South and Central America, where it’s been used medicinally for centuries by indigenous people. It’s now grown in many parts of the world, with China and Brazil among the largest producers. Stevia production is also being developed in the U.S. and Canada, though currently it’s on a relatively small scale.

Stevia is utilized in foods, beverages, dietary supplements, and personal care products. Early adopters included Japan, where stevioside extracts now account for a significant share of the sweetener market.

Stevia was officially banned from sale in the U.S. as a sweetener in 1991, when the FDA concluded that it was an unsafe food additive. Since the ban, there’s been much speculation that the FDA was influenced by makers of artificial sweeteners, which had just come to market at that time, as well as the sugar lobby, which may have felt threatened by the natural aspect of the sweetener. However, to date, the FDA has declined to release the original petitioner’s affiliation.

All the while, numerous studies on stevia, and its active constituents, proved inconsistent in terms of safety and effects on the human physiology. The biggest nod in favor of stevia came in 2006, when the World Health Organization (WHO) evaluated many studies and concluded that stevioside and reb a are safe.

The market for stevia products in the U.S. changed significantly in December 2008, when the FDA sent “no objection” letters to Cargill and Merisant, agreeing that their reb a extracts from the leaves of the stevia plant are generally recognized as safe (GRAS) for food and beverages. Many other companies have since followed suit.

Additionally, the FDA now approves of companies marketing their stevia products as sweeteners (food) rather than dietary supplements if several criteria are met:


£2,534.48

This report builds on the analysis presented in Mintel’s Sugar and Sweeteners—U.S., December 2010 and more specifically Stevia and Other Natural Sweeteners—U.S., August 2009, focusing on in-depth analysis of two all-natural sweetener segments:

  • Stevia (e.g., Truvia, PureVia, and other stevia): including whole plant extracts in powders and liquids, sold primarily as standalone products classified—per the FDA’s guidelines—as dietary supplements or food, but often used in tabletop sweetener formats (e.g., packets). This segment also includes Truvia- and PureVia-branded sweeteners, sold as tabletop sweeteners or that appear as ingredients in food and beverages.
  • Other natural sweeteners: including agave, erythritol, xylitol, and luo han guo as they appear in tabletop sweeteners, as well as foods and beverages made with these sweeteners.

Additionally, individual segments highlight sales figures based on all products that fall into two applications:

tabletop sweeteners for use as additions to foods and beverages

all other processed food and beverages that contain these sweeteners.

While included in sales figures, agave and luo han guo sweeteners are only touched on briefly. Should these segments, and others like them, increase in size in the coming years, they may be featured more prominently in subsequent updates to this report.

Excluded from this report: many erythritol-based foods positioned as low-carb, low-sugar, or sugar-free, that contain added artificial sweeteners, since the focus of this report is on all-natural innovations in the market.


Scope and Themes


What you need to know


Definition


History and usage of stevia


Data sources


Sales data

Consumer data

Advertising clips

Abbreviations and terms


Abbreviations

Terms

Executive Summary


Natural sweetener market expected to top $1 billion in 2012


Food and beverage applications drive the overall market and growth

FDMx leads overall, but tabletop segment a driver in natural/specialty


PepsiCo and Coca-Cola lead the pack


Product innovations highlight goal of improved flavor


Latest marketing uniformly targets women and plays up natural angle


Tabletop sweetener brands emphasize guilt-free indulgence

PepsiCo targets women seeking better health and empowerment

Consumer awareness is up. All-natural positioning matters


Natural low/no-calorie sweeteners making gains with awareness

Prime demographics for stevia include those who see artificial sweeteners as unhealthy

Taste, sweetness, and all-natural positioning matter most

Insights and Opportunities


Think of stevia as a “tool in the toolbox”…


…but the resulting products should be “all natural”


The market opportunity: pushing the tabletop sweetener


Filling the sweet beverage void in schools


Inspire Insights


Trend: Prove It


Market Size and Forecast


Key points


Fast-growing market still has a ways to go


Figure 1: Food and beverage retail sales of stevia and other natural sweeteners, at current prices, 2009-13

Figure 2: Food and beverage retail sales of stevia and other natural sweeteners, at inflation-adjusted prices, 2009-13

Fan chart forecast


Figure 3: Fan chart forecast for stevia and other natural sweeteners, 2009-13

Market Drivers


Overview


Figure 4: Awareness and usage of stevia and other natural sweeteners, June 2009 and April 2011

Diet watchers could fuel natural low/no-calorie sweetener market


Figure 5: Likelihood of watching diet and reasons for doing so, by gender, October 2009-December 2010

Figure 6: Likelihood of watching diet and reasons for doing so, by age, October 2009-December 2010

Figure 7: U.S. population aged 18 or older, 2006-16

Figure 8: U.S. female population, by age, 2006-16

European Union (EU) approval will likely spur sales of stevia in U.S. as well


Stevia prices dropping


Other natural sweeteners also emerging, albeit slowly


Monk fruit (luo han guo)

Segment Performance


Key points


Stevia-based products represent nearly 80% of sales


Figure 9: Food and beverage retail sales of stevia and other natural sweeteners, by segment, 2009-11

Food and beverage applications drive the overall market and growth


Figure 10: Food and beverage retail sales of stevia and other natural sweeteners, by application, 2009-11**

Segment Performance—Stevia


Key points


Stevia’s market firmly rooted in food and beverage applications


Figure 11: Food and beverage retail sales of stevia, by application, 2009-11**

Figure 12: Food and beverage retail sales of stevia, 2009-13

Segment Performance—Other Natural Sweeteners


Key points


Agave has emerged as the leading alternative to stevia


Figure 13: Food and beverage retail sales of other natural sweeteners, by application, 2009-11**

Figure 14: Food and beverage retail sales of other natural sweeteners, 2009-13

Retail Channels


Key points


FDMx outlets dominate in channel distribution sales


Figure 15: Sales and share of stevia and other natural sweeteners, by channel, 2009-11

Figure 16: Sales of stevia and other natural sweeteners, segmented by application and channel, 2009-11**

Leading Companies


Key points


PepsiCo and Coca-Cola account for 63% of sales


Figure 17: Top five manufacturers—sales of stevia and other natural sweeteners, 2010 and 2011

Brand Share—Stevia


Key points


Three beverage brands are the current “face” of stevia


Figure 18: Leading brands of stevia, 2010 and 2011

Brand Share—Other Natural Sweeteners


Key points


PepsiCo leads the pack


Figure 19: Leading brands of other natural sweeteners, 2010 and 2011

Innovations and Innovators


Key points


Stevia, xylitol, and erythritol product launches, 2006-11


Figure 20: Product launches with stevia, xylitol, and/or erythritol presence, by category, 2006-11

Stevia (including Truvia and PureVia)


U.S. stevia launches represent just 18% of global innovations during 2006-11

Figure 21: Product launches with stevia presence, by global region, 2006-11

U.S. stevia launches honed to beverage market and feature all-natural/green claims

Tabletop market now ranks stevia second only to Splenda

Figure 22: Product launches with stevia presence, by category, 2006-11

Figure 23: Product launches with stevia presence, by top 15 claims, 2006-11

Xylitol and erythritol featured more often in food innovations


Figure 24: Product launches with xylitol presence, by category, 2006-11

Figure 25: Product launches with erythritol presence, by category, 2006-11

Stevia raw material companies move into patents and consumer products


PureCircle branding extends to global offerings

GLG offerings now include ingredients and a consumer brand

Marketing Strategies


In The Raw brands co-marketed for dual success


“It’s only natural”

Figure 26: Stevia In The Raw, “Man wishes for grocery list,” television ad, 2011

Figure 27: Stevia In The Raw, “Woman eats brownies on floor,” television ad, 2011

Truvia’s “Honestly sweet” tagline continues


Figure 28: Truvia, “Woman stares at a chocolate bunny,” television ad, 2011

Figure 29: Truvia, “Woman eats dessert,” television ad, 2011

Trop50 expands with new flavors and promotion


Natural No/Low-calorie Sweetener Awareness


Key points


Awareness and usage of natural no/low-calorie sweeteners


Figure 30: Awareness and usage of natural no/low-calorie sweeteners, April 2011

Figure 31: Awareness and usage of stevia (e.g., SweetLeaf, Truvia, PureVia), by gender and age, April 2011

Figure 32: Awareness and usage of stevia (e.g., SweetLeaf, Truvia, PureVia), by household income and presence of children, April 2011

Sweetener Usage


Key points


Sugar and artificial sweetener usage


Figure 33: Sugar and artificial sweetener usage, by gender and age, April 2011

Figure 34: Sugar and artificial sweetener usage, by household income and presence of children, April 2011

Figure 35: Sugar and artificial sweetener usage, by race/Hispanic origin, April 2011

Figure 36: Household usage of sugar substitutes or artificial sweeteners, by age, October 2009-December 2010

Sweetener usage frequency


Figure 37: Sweetener usage frequency, by gender and age, April 2011

Figure 38: Sweetener usage frequency, by household income and presence of children, April 2011

Attitudes Toward Sweeteners


Key points


Attitudes toward natural and artificial sweeteners


Figure 39: Attitudes toward natural and artificial sweeteners, by gender and age, April 2011

Figure 40: Attitudes toward natural and artificial sweeteners, by household income and presence of children, April 2011

Sweeteners—Important Attributes and Usage Locales


Key points


Sweetener attributes that matter most


Figure 41: Sweetener attributes that matter most, by gender and age, April 2011

Figure 42: Sweetener attributes that matter most, by household income and presence of children, April 2011

How consumers use sweeteners


Figure 43: How consumers use sweeteners, by gender and age, April 2011

Figure 44: How consumers use sweeteners, by household income and presence of children, April 2011

Cluster Analysis


Naturally Aware Specialists


Demographics

Characteristics

Opportunity

Disinterested Unawares


Demographics

Characteristics

Opportunity

Potentials


Demographics

Characteristics

Opportunity

Cluster characteristic tables


Figure 45: Stevia and natural sweeteners clusters, April 2011

Figure 46: Shopping at natural/specialty markets, by custom clusters, April 2011

Figure 47: Diet habits, by custom clusters, April 2011

Figure 48: Awareness and usage of stevia, by custom clusters, April 2011

Figure 49: Sweetener attributes that matter most, by custom clusters, April 2011

Cluster demographic tables


Figure 50: Stevia and natural sweeteners clusters, by gender, April 2011

Figure 51: Stevia and natural sweeteners clusters, by age, April 2011

Figure 52: Stevia and natural sweeteners clusters, by household income, April 2011

Figure 53: Stevia and natural sweeteners clusters, by race, April 2011

Figure 54: Stevia and natural sweeteners clusters, by Hispanic origin, April 2011

Cluster methodology


Custom Consumer Groups


Key points


Sweetener usage and attitudes


Stevia awareness and usage

Figure 55: Awareness and usage of stevia (e.g., SweetLeaf, Truvia, PureVia), by custom consumer groups, April 2011

Sugar and artificial sweetener usage

Figure 56: Sugar and artificial sweetener usage, by custom consumer groups, April 2011

Sweetener usage frequency

Figure 57: Sweetener usage frequency, by custom consumer groups, April 2011

Attitudes toward natural/artificial sweeteners

Figure 58: Attitudes toward natural and artificial sweeteners, by custom consumer groups, April 2011

Sweetener attributes that matter most

Figure 59: Sweetener attributes that matter most, by custom consumer groups, April 2011

How consumers use sweeteners

Figure 60: How consumers use sweeteners, by custom consumer groups, April 2011

Appendix—Shopping and Dietary Habits


Key points


Shopping at natural/specialty markets


Figure 61: Shopping at natural/specialty markets, by gender and age, April 2011

Figure 62: Shopping at natural/specialty markets, by household income and presence of children, April 2011

Figure 63: Shopping at natural/specialty markets, by race/Hispanic origin, April 2011

Dietary habits


Figure 64: Dietary habits, by gender and age, April 2011

Figure 65: Dietary habits, by household income and presence of children, April 2011

Appendix: Trade Associations and Trade Shows


  • Coca-Cola Company (The) (USA)
  • Cumberland Packing Corp.
  • Dr Pepper Snapple Group, Inc.
  • Food and Drug Administration
  • Kellogg Company
  • McNeil Consumer Nutritionals UK Ltd
  • Merisant
  • NutraSweet Company, The
  • PepsiCo Inc
  • Robert Wood Johnson Foundation
  • Tate & Lyle
  • Trader Joe's Company Inc
  • U.S. Bureau of Labor Statistics
  • U.S. Department of Agriculture
  • Walmart Stores (USA)
  • Whole Foods Market Inc
  • Wholesome Sweeteners
  • World Health Organization
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