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specialist consultants to the food and drink industries worldwide

Zenith Report Stevia March 2011

STRATEGY & MANAGEMENT  MERGERS & ACQUISITIONS  COMMERCIAL & MARKET  OPERATIONS & TECHNICAL  WATER & GEOTHERMAL  ENVIRONMENT & CARBON  PACKAGING & DISTRIBUTION


Contents 1: Executive summary & introduction 2: Sugar 3: High Fructose Corn Syrup (HFCS) 4: Market drivers for HIS 5: Global HIS market 6: Emergence of stevia 7: Stevia legislation 8: Stevia production and consumption 9: Stevia SWOT 10: Alternative natural sweeteners 11: Sweetener comparison

Š Zenith International Ltd 2010

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zenithinternational specialist consultants to the food and drink industries worldwide


Contents 12: Challenges facing stevia 13: Stevia forecast 14: Key commercial developments 15: Stevia suppliers 16: Stevia sample soft drink brands

Š Zenith International Ltd 2010

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zenithinternational specialist consultants to the food and drink industries worldwide


Global Stevia Market Executive summary Stevia has been recognised for its sweetening properties in its native land of Paraguay for centuries and used extensively as a sweetener in general food use in the Far East, in particular Japan, for decades. The growing, worldwide emphasis on health, achieved in part through the products that we eat and drink, and a widening demand for natural ingredients has led the food and beverage industry to look much more closely at sweetening ingredients. Stevia meets both of these criteria in that it is non caloric and a natural product. The global stevia market has for many years been limited by regulatory constraints. However, the breakthrough came in June 2008 when Joint WHO/FAO Expert Committee on Food Additives (JECFA) stated that steviol glycosides are safe for use in foods and beverages. Rebaudioside A was subsequently given GRAS (Generally Recognized as Safe) status for use in food and beverages by the US Food and Drug Administration (FDA) in December 2008. Since then stevia’s profile on the global food and drinks stage has rocketed. The industry is highly fragmented with just a small number of companies able to undertake the whole process to manufacture high grade stevia extract, from leaf to finished ingredient. Production is focused heavily on Asia, China in particular, and South America. With regulatory approval still a major obstacle to overcome in Europe, the market is still in only its early stages. However, popular acceptance of stevia in North and South America and Asia, suggests that the potential is significant. Zenith estimates the global stevia market to be 3,500 metric tonnes by volume, equivalent to US$285 million by value.

Š Zenith International Ltd 2010

zenithinternational specialist consultants to the food and drink industries worldwide


Global Stevia Market Stevia production and consumption Commentary

Global stevia market by region, 2010e

Stevia market by region (metric tonnes)

Metric tonnes

Region 1 Region 2

2010e

% share

Region 1 Region 2

Region 3

Region 3

Region 4

Region 4

Region 5

Region 5 Total

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zenithinternational specialist consultants to the food and drink industries worldwide


Global Stevia Market Sweetener comparison

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Sugar

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Natural High Intensity Sweeteners

Relative sweetness to table sugar (sucrose)

Advantame

Artifical High Intensity Sweeteners

Š Zenith International Ltd 2010

zenithinternational specialist consultants to the food and drink industries worldwide


Global Stevia Market Stevia suppliers Manufacturer: PureCircle USA Inc Address: 915 Harger Road, Suite 250, Oak Brook, Illinois, 60523, USA Website: www.purecircle.com, www.purevia.com Overview: The PureCircle Group develops and manufactures natural food ingredients for supply to the global food and beverage industry. The current focus is exclusively in the production and sale of extracted natural high intensity sweetener (HIS). The PureCircle Group has a global sales and marketing organisation, operating on a regional basis from eight offices in US, Paraguay, Switzerland, Russia, Japan, Australia, Malaysia and China. PureCircle operates a B2B business model and has a consolidated supply chain positioning. The company currently operates from the world’s largest stevia extraction facility located in China, and from its refinery located in Malaysia. Stevia leaf is sourced from China. PureCircle has been actively diversifying its leaf supply and now has plantation operations that cover three continents: Asia, Africa and South America. Stevia products: PureCircle produces PureCircle Reb A, a high purity Reb A 97% extract 400 times sweeter than sugar, and Reb A 75, a mixture of highly purified sweet glycosides 150 times sweeter than sugar, with a rebaudioside A content of not less than 75%. The company also supplies stevia under the PureVia trademark, developed in conjunction with PepsiCo Inc and Whole Earth Sweetener Company.

Š Zenith International Ltd 2010

zenithinternational specialist consultants to the food and drink industries worldwide


Global Stevia Market Stevia sample soft drink brands

Product name: All Sport Naturally Zero Manufacturer: Dr Pepper Snapple Group (DPSG) and All Sport Product description: ‘All Sport Naturally Zero is nothing but pure and natural refreshment. Sweetened with Truvia, a natural sweetness with zero calories attached, it delivers cool, fast, great-tasting hydration with zero sugar and zero calories.’ Variants: Blue Raz Ice, Fruit Punch, Lemon Lime, Orange, Grape, Strawberry Star Fruit, Mandarin Orange, Dragonfruit Price and packaging: 12oz, 20oz and 32oz bottle; price na Launch: April 2009 Market: US Website: www.drinkallsport.com

© Zenith International Ltd 2010

zenithinternational specialist consultants to the food and drink industries worldwide


zenithinternational specialist consultants to the food and drink industries worldwide

Apart from publicly available off-the-shelf reports we are keen to design and deliver tailor made studies specific to your requirements. To find out more and discuss how we could support you please contact us on +44 (0)1225 327900 or via misales@zenithinternational.com

STRATEGY & MANAGEMENT  MERGERS & ACQUISITIONS  COMMERCIAL & MARKET  OPERATIONS & TECHNICAL  WATER & GEOTHERMAL  ENVIRONMENT & CARBON  PACKAGING & DISTRIBUTION


Zenith's Stevia Report