Stevia 3.0: The Ingredient Behind the RTD Tea Boom

There’s a quiet revolution brewing in the iced tea aisle. Once dominated by sugary, traditional flavors, the category is now evolving in response to consumer demand for healthier, more functional, and more flavorful options. In this new landscape, stevia is playing a more central — and more sophisticated — role than ever before.

Stevia is emerging not merely as a sugar substitute, but increasingly as a catalyst for flavor innovation.

A Market Poised for Transformation

According to Allied Market Research, the global RTD tea market is projected to grow from USD 76 billion in 2025 to over USD 115 billion by 2030, driven by a CAGR of 7–8%. The category’s expansion is being propelled by three powerful forces:

Health consciousness: With rising concerns about diabetes, obesity, and sugar intake, consumers — especially Millennials and Gen Z — are increasingly turning toward tea, in particular, due to its association with natural ingredients and its longstanding reputation for health benefits. According to a 2025 study published in Nutrition Journal, energy drinks, regular soft drinks, and diet soft drinks were most frequently perceived as unhealthy across all surveyed countries, while beverages like water, iced tea, and specialty coffee were perceived as healthier.

Flavor exploration: Younger demographics are seeking adventurous combinations like yuzu-mint, ginger-peach, and floral green teas that go beyond legacy black or lemon variants.

Label scrutiny: As consumers grow more discerning about what’s on their labels, they’re rewarding brands that deliver transparency and simplicity. This shift is accelerating growth in the RTD tea category, where clean-label, plant-based ingredients—like tea extracts and natural sweeteners—are naturally aligned with consumer values.

As a result, the sugar-free segment of RTD tea is growing faster than the category as a whole—and stevia is at the heart of this shift. In fact, stevia was the most widely used sweetener in sugar-free iced tea product launches globally in 2024, with a 49.17% market share according to Innova Market Insights.

Yet despite its rapid adoption, stevia’s role is evolving beyond sweetness alone.

From Sugar Replacement to Flavor Enabler

Traditional stevia formulations were often hampered by taste issues — most notably, a lingering sweetness, slower onset, and a bitter or metallic aftertaste. These challenges were particularly pronounced in complex tea bases, which contain tannins, catechins, and other polyphenols that can enhance bitterness or suppress sweetness.

However, recent advancements—led by HOWTIAN’s SoPure® stevia portfolio—have ushered in a new era of stevia application. Today, stevia can not only match sugar’s sweetness but also contribute to a well-balanced flavor profile, mouthfeel, and sensory harmony across both clear and milk-based teas.

Addressing the Technical Challenges of Tea

Replacing sugar in tea presents unique formulation hurdles:

• Acidity and mouthfeel: Sugar naturally buffers acidity and adds body. Removing it often results in sharpness or thin texture.
• Flavor separation: In milk teas, sugar acts as a binder between tea tannins, milk fats, and flavor components. Without it, separation can occur.
• Sweetness curve: The delayed onset and lingering tail of some steviol glycosides can clash with fruit or botanical notes.

HOWTIAN’s SoPure solutions are engineered to solve these challenges:

• SoPure Andromeda® enhances fruit-forward iced teas by delivering a fast onset of sweetness and a clean finish. It pairs especially well with tropical or citrus formats.
• SoPure Galaxy® is optimized for milk teas, balancing sweetness while extending fruity or creamy notes and improving overall mouthfeel.
• SoPure Dorado®, a golden unrefined extract, is ideal for matcha and green tea formats where a more natural, herbal flavor is desired.

Matching Sweetness and Sourness: Acid Synergy

In addition to sweetener selection, acid pairing plays a critical role in balancing RTD tea flavor.

The sensory timing of acids plays a crucial role in matching stevia’s sweetness profile. As illustrated below, the combination of malic or lactic with citric acid better align with stevia’s delayed sweetness, helping reduce lingering sweetness for a more balanced flavor.

Malic and lactic acids are especially effective in reducing lingering sweetness while preserving balance. Combining them with citric acid often yields the most optimal flavor result.

These strategic acid selections are vital tools for developers working to mimic the roundness and balance of sugar-based formulations—without compromising on taste.

Real-World Formulation Success

HOWTIAN’s SoPure systems aren’t just theoretical—they’re powering real products with dramatic results in both clear and milk-based tea applications.

Ingredient	Full Sugar (Benchmark)	RA97 (Sugar Reduction 75%)	SoPure™ Andromeda (Sugar Reduction 75%)
Sugar	9.700	2.425	2.425
Instant Dark Tea	0.150	0.150	0.150
Citric Acid	0.200	0.200	0.200
RA97	–	0.024	–
SoPure™ Andromeda	–	–	0.024
Dark tea flavor	0.020	0.020	0.020
Lemon flavor	0.002	0.002	0.002
Water	89.928	97.179	97.179
Total	100.000	100.000	100.000

Sugar-Reduced Milk Tea
Featuring SoPure Flevia 3

This sugar-reduced milk tea prototype demonstrates how SoPure Flevia 3 can effectively replace added sugar in dairy-based beverages without compromising on flavor or texture. The result is a well-rounded, indulgent drink with clean sweetness and no separation.

Ingredient	Full Sugar (Benchmark)	Sugar Reduction
Sugar	5.000	3.500
HFCS	3.400	3.400
Milk Powder	2.500	2.500
Black Tea	0.700	0.700
Coconut Oil	8.900	8.900
Stabilizer	0.600	0.600
SoPure Flevia 3	–	0.175
Water	78.900	80.225
Total	100.000	100.000

Innovation in Every Sip

The innovation window for the RTD tea category is more open than ever. Beverage developers are no longer limited to basic sugar reduction; they can now use stevia as a functional tool for crafting unique, memorable products. Whether it’s a 50% sugar-reduced hibiscus tea or a zero-calorie lychee jasmine milk tea, the creative boundaries have expanded.

According to Mintel, beverage product launches featuring stevia have risen 15% year-over-year, signaling strong market confidence. Leading global brands have already integrated HOWTIAN’s SoPure stevia systems into their formulation pipelines, accelerating both speed-to-market and consumer acceptance.

As the RTD tea boom continues, success will hinge not just on removing sugar, but on what replaces it. Stevia’s evolution from sweetener to sensory architect marks a turning point in beverage development—especially for brands looking to meet modern demands for flavor, function, and natural appeal.

With the SoPure® line, HOWTIAN empowers brands to create next-generation RTD teas that are healthier, more sustainable, and uncompromisingly delicious.

Create a Formula For Success

Interested in formulating your next tea product with SoPure? Contact HOWTIAN to request a formulation consultation or sample kit featuring Andromeda, Galaxy, and Dorado solutions.