Global Stevia Market Report 2016

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zenithinternational

2016 Global Stevia Market A strategic overview of the natural sweetener market

September 2016


Research Note In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources and interviews with the industry. Throughout its on-going research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace, and, as such, seeks to achieve a high level of accuracy. Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information. Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith International Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith International from any liability related to the report distribution. Such readers however will not be considered “users� of this report.

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Copyright All copyright in this document is reserved.


Contents

The contacts at Zenith International in connection with this report are: Dr Nouf Jeynes Market Analyst Zenith International Ltd., UK Tel: +44 1225 327922 njeynes@zenithinternational.com

Section

Page

1. Executive summary

5

2. Introduction

7

2.1 Sugar

11

2.2 High fructose corn syrup (HFCS)

15

2.3 Health implications

18

Esther Renfrew Market Intelligence Director Zenith International Ltd., UK

2.4 Global soft drinks consumption

20

2.5 Food industry health initiatives

22

Tel: +44 1225 327900 erenfrew@zenithinternational.com

2.6 Sugar substitutes (artificial and natural)

27

3. Stevia Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom T +44 (0) 1225 327900 F +44 (0) 1225 327901 www.zenithinternational.com

zenithinternational specialist consultants to the food and drink industries worldwide

38

3.1 Introduction

39

3.2 Consumers’ perspective

52

3.3 Regional analysis of usage

54

3.4 Products launches analysis (2009 -15)

57

3.5 Types of suppliers and pricing

60

3.6 Leading suppliers

65

3.7 Key developments

87

3.8 Challenges

95

3.9 Products launches analysis

98

3.10 Forecast

112

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Contents Tables and figures

Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 Figure 22

Tables

Major sugar producing countries / regions sugar production and consumption World refined sugar prices 2010-15 Sugar vs HFCS prices US HFCS production 2004-2015 Usage of HFCS-55 by industry HFCS production by country, 2013 Obesity prevalence 1970-1979 Obesity prevalence 2010-2015 Global consumption of drinks 2005-15 Sweeteners comparison Sweetness strength between steviol glycosides Key cultivation regions stevia carbon footprint compared to different sweeteners stevia water footprint comparted to different sweeteners What sweeteners are considered natural? Stevia awareness, 2013 & 2015 Global food and beverage launches with stevia % of product launches in 2015 by category Stevia product launches by year, 2008 - 2015 Global stevia market volume (2015-2017) Global stevia market value (2015-2017)

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Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7

A list of artificial substitutes A list of natural substitutes A list of main steviol glycosides Stevia’s different formats Existing authorisations of stevia as a food ingredient Stevia’s average prices Key development

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zenithinternational 1. Executive summary

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1. Executive Summary Our key findings

 Commentary  Commentary  Commentary

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zenithinternational 2. Introduction

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2. Introduction 2.0 Research note Research note In undertaking its research, Zenith International depends upon the goodwill and co-operation of firms in the marketplace to provide accurate figures on their activities and thus the market overall. However, as the stevia market is still in the infancy of its product life cycle in many countries, Zenith has had to produce best estimates from all industry sources. Ultimately Zenith has had to make its own judgment and therefore all figures presented should realistically be regarded as Zenith estimates. Yet, with the extent of crosschecking involved in the report and the industry’s assistance, Zenith believes a high level of accuracy has been achieved. Zenith would like to thank the following companies for their help in compiling the 2016 Global Stevia Market report:       

Australian Stevia Mills Cargill Ingredion International Stevia Council PureCircle Stevia Natura The Real Stevia Company

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2. Introduction 2.0 Symbols and abbreviations

... e f na ADI AFSAA EFSA FDA GRAS GSI HFCS HIS INS ISC JECFA Reb SG WHO

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Negligible, less than 0.05 Estimate Forecast Not available Acceptable Daily Intake French Food Safety Authority (Agence Française de la Sécurité Sanitaire des Aliments) European Food Safety Authority Food and Drug Administration (US) Generally Recognized as Safe Global Stevia Institute High Fructose Corn Syrup High Intensity Sweeteners International Numbering System International Stevia Council Joint WHO/FAO Expert Committee on Food Additives Rebaudioside Steviol glycosides World Health Organization

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2. Introduction 2.1 The emergence of stevia  Commentary  Commentary  Commentary

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zenithinternational 2.1 Introduction

Sugar

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2. Introduction 2.1 Sugar Sugars definition  Commentary

Sugar production  Commentary Figure 1: Major sugar producing countries / regions

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2. Introduction 2.1 Sugar Sugar consumption  Commentary

Figure 2: sugar production and consumption

 Commentary

Sugar consumption - regional analysis  Commentary  Commentary

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Page 13

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2. Introduction 2.1 Sugar  Commentary

Sugar prices  Commentary

Figure 3: World refined sugar prices 2010-15

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zenithinternational 2.2 Introduction

High Fructose Corn Syrup (HFCS)

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2. Introduction 2.2 High Fructose Corn Syrup (HFCS)  Commentary

 Commentary

 Commentary

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Page 16

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2. Introduction 2.2 High Fructose Corn Syrup (HFCS) Figure 4: Sugar vs HFCS prices

Figure 5: US HFCS production 2004-2015

Figure 7: HFCS production by country, 2013

Figure 6: Usage of HFCS-55 by industry

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zenithinternational 2.3 Introduction

Health-implications of sugar consumption

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2. Introduction 2.3 Health implications  Commentary  Commentary

Figure 9: obesity prevalence 2010-2015

Figure 8: obesity prevalence 1970-1979

 Commentary  Commentary  Commentary

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zenithinternational 2.4 Introduction

Global soft drink consumption

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2. Introduction 2.4 Global soft drinks consumption 

Commentary

Figure 10: global consumption of drinks 2005-15

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zenithinternational 2.5 Introduction

Food industry health initiatives

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2. Introduction 2.5 Food industry health initiatives  Commentary

Company  Commentary

Company  Commentary

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2. Introduction 2.5 Food industry health initiatives Company  Commentary

Company  Commentary

Company  Commentary

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2. Introduction 2.5 Food industry health initiatives

Company  Commentary

Company  Commentary

Company  Commentary

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zenithinternational 2.6 Introduction

Sugar substitutes

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2. Introduction 2.6 Sugar substitutes  Commentary  Commentary

Artificial substitutes:  Commentary  Commentary

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2. Introduction 2.6 Sugar substitutes

Artificial substitutes on the shelves:  Commentary

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2. Introduction 2.6 Sugar substitutes - artificial substitutes Artificial substitutes on the shelves:

Product examples

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2. Introduction 2.6 Sugar substitutes - Table 1: a list of artificial substitutes

Sweetener

Sweetness (vs sucrose)

Primary uses

Acceptable daily intake (ADI)

Global HIS value (%)

Global HIS volume (%)

Acesulfame Potassium (Acesulfame K)

Aspartame

Cyclamate

Saccharin

Sucralose

Neotame

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2. Introduction 2.6 Sugar substitutes - key artificial substitutes brands  Commentary  Commentary

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2. Introduction 2.6 Sugar substitutes - natural substitutes  Commentary  Commentary

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2. Introduction 2.6 Sugar substitutes - Table 2: a list of natural substitutes

Sweetener

Sweetness (vs sucrose)

Primary uses

Agave nectar

Brazzein

Glycyrrhizin Luo han guo (Monk Fruit) Monatin

Thaumatin

Stevia

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2. Introduction 2.6 Sugar substitutes - natural substitutes

Stevia on the shelf

Product examples

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2. Introduction 2.6 Sugar substitutes - sweetener comparison Figure 11: sweeteners comparison

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zenithinternational 3. Stevia

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zenithinternational 3.1 Stevia

Introduction

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3. Stevia 3.1 Introduction

Description Commentary Origin Commentary

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Health benefits  Commentary  Commentary  Commentary

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3. Stevia 3.1 Introduction Table 3: List of main steviol glycosides  Commentary

Steviol glycosides

Sweetness compared to sugar

Stevioside Steviolbioside Rubusoside

Acceptable synonyms for steviol glycosides:  Commentary  Commentary

Dulcoside A, Rebaudioside A (Rebiana), Rebaudioside B, Rebaudioside C Rebaudioside D Rebaudioside E Rebaudioside F

Figure 12 shows the different sweetness strength between steviol glycosides compared to sucrose and saccharine.

Source: Daepyung Company

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3. Stevia 3.1 Introduction

Metabolism  Commentary

Acceptable Daily Intake  Commentary  Commentary

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3. Stevia 3.1 Introduction Applications  Commentary  Commentary  Commentary  Commentary

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3. Stevia 3.1 Introduction - cultivation

Cultivation of Stevia  Commentary  Commentary  Commentary  Commentary

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3. Stevia 3.1 Introduction - cultivation

Ideal cultivation conditions:  Commentary  Commentary  Commentary  Commentary

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3. Stevia 3.1 Introduction - key cultivation countries Figure 13: key cultivation regions

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3. Stevia 3.1 Introduction - purification

Stevia purification  Commentary  Commentary  Commentary  Commentary

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3. Stevia 3.1 Introduction - format

Stevia format  Commentary  Commentary

Table 4: Stevia’s different formats Sugar amount

Equivalent stevia powdered extract

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Equivalent stevia liquid extract

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3. Stevia 3.1 Introduction - legislation  Commentary  Commentary  Commentary  Commentary

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3. Stevia 3.1 Introduction - legislation Table 5: Existing authorisations of stevia as a food ingredient Africa

Americas

Europe and Middle East

Asia Pacific

*

Generally follows UAE ** Pending *** Generally adopts FDA approval

Source: Global Stevia Institute

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3. Stevia 3.1 Introduction - sustainability Figure 14: stevia carbon footprint compared to different sweeteners

 Commentary  Commentary  Commentary  Commentary

Figure 15: stevia water footprint compared to different sweeteners

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zenithinternational 3.2 Stevia

Consumers’ perspective

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3. Stevia 3.2 Consumers' perspective  Commentary

Figure 16: What sweeteners are considered natural?

 Commentary  Commentary  Commentary

Figure 17: Stevia awareness, 2013 & 2015

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3. Stevia 3.2 Consumers' perspective  Commentary  Commentary  Commentary  Commentary

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zenithinternational 3.3 Stevia

Regional analysis of usage

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3. Stevia 3.3 Regional analysis of usage Global usage  Commentary

USA  Commentary

Europe  Commentary

Latin American  Commentary

Asia  Commentary

Australia  Commentary

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zenithinternational 3.4 Stevia

Product launches analysis

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3. Stevia 3.4 Product launches analysis  Commentary  Commentary  Commentary

Figure 18: Global food and beverage launches with stevia

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Figure 19: % of product launches in 2015 by category

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3. Stevia 3.4 Product launches regional analysis  Commentary  Commentary  Commentary

Figure 20: Stevia product launches by year, 2008 - 2015

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zenithinternational 3.5 Stevia

Types of suppliers and pricing

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3. Stevia 3.5 Types of suppliers and pricing

Type of supplier  Commentary  Commentary  Commentary

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3. Stevia 3.5 Types of suppliers and pricing

Type of supplier (continued.)  Commentary  Commentary  Commentary

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3. Stevia 3.5 Types of suppliers and pricing Table 6: Stevia’s average prices Stevia pricing  Commentary  Commentary  Commentary

Average price of global stevia extracts (US$/kg)

Date August 2011 August 2012 August 2013 August 2014 August 2015 August 2016(f)

Average price (US$/kg) Type of stevia

Premium supplier

Low cost supplier

Broker

Reb A 40% Reb A 60% Reb A 80%

Reb A 90% Reb A 95% Reb A 97% Reb A 98%

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3. Stevia 3.5 Types of suppliers and pricing

Alternatives to Reb A  Commentary  Commentary  Commentary

Price change over time  Commentary  Commentary  Commentary

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zenithinternational 3.6 Stevia

Stevia suppliers

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3. Stevia 3.6 Stevia suppliers

Manufacturer: Address (head office): Website: Stevia products: Overview:

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zenithinternational 3.7 Stevia

Key developments

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3. Stevia 3.7 Key developments

Advancement in Formulations  Commentary  Commentary  Commentary

Approval of stevia in key markets  Commentary  Commentary  Commentary

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3. Stevia Table 7: Key developments

Date

Country

Companies

July 2016

USA

PureCircle is to invest US$100m in its agronomy programme to create the world’s largest natural stevia supply.

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3. Stevia Table 7: Key developments

Date

Country

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Companies

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3. Stevia Table 7: Key developments Date

Country

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Companies

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3. Stevia Table 7: Key developments Date

Country

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Companies

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3. Stevia Table 7: Key developments Date

Country

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Companies

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3. Stevia Table 7: Key developments Date

Country

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Companies

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zenithinternational 3.8 Stevia

Challenges

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3. Stevia 3.8 Challenges Suppliers  Commentary  Commentary  Commentary

Manufacturers  Commentary  Commentary  Commentary

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3. Stevia 3.8 Challenges Consumers  Commentary  Commentary  Commentary

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zenithinternational 3.9 Stevia

Key products

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3. Stevia 3.9 Key products

Soft Drinks category Product Commentary

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3. Stevia 3.9 Key products

Juices/ drinks category

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zenithinternational 3.10 Stevia

Market forecast

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3. Stevia 3.10 forecast  Commentary  Commentary  Commentary

Figure 22: Global stevia market B2B value (20152017f)

Figure 21: Global stevia market B2B volume (2015-2017f)

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We hope you found this report insightful. Please help us improve our reports further by providing your feedback here For a tailor made study specific to your requirements, please telephone Monika Fedor on; +44 (0)1225 327900 or email mfedor@zenithinternational.com To subscribe to FREE daily industry news from Zenith International, please click here Zenith also offers specific news services, including a dedicated bottled water newsletter, plus online data resources and continuous market monitoring. Our consulting activities are wide ranging. These include tailor made market studies, strategic advice, acquisitions and due diligence, business plans and cost modelling through to plant construction and operational efficiency, environmental audits and groundwater development. To discuss any of Zenith’s services, please telephone our head office on; +44 (0)1225 327900 or visit www.zenithinternational.com

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