How current market volatility and rising sugar prices are boosting stevia as a solution not just for sugar reduction targets, but cost savings too
Rapidly rising sugar prices, consumer demand for natural alternatives, and never-ending supply chain woes… the list goes on.
In short, the food & beverage industry is exploring more-natural, less-sugary pastures for its consumers — leading to a sugar-replacement revolution.
- Sugar prices are at a six-year high, and not expected to improve
- The global sugar supply & demand gap is widening, reducing the stock-to-use ratio
- India, Pakistan & others introduced sugar export restrictions
Moreover, high oil prices have led to competition for the output from the sugar sector, as economies are likely to use more cane sugar toward producing ethanol — further reducing the sugar supply.
Food and beverage manufacturers worldwide are feeling the squeeze in production costs, which contribute to the inflationary pressures on consumers.
Bottom line: Manufacturers are seeking cost-friendly alternatives. Consumers are seeking natural, low-sugar solutions. Research and development teams across all industries are actively searching for new solutions to meet these demands, all the while still maintaining the integrity of their products’ taste.
In these challenging times, stevia, a popular natural sugar alternative, has emerged as a promising solution.
Thanks to decades of agricultural science advancements and improvements in steviol glycoside yield levels, the global supply of stevia is healthy and cost-effective. Contrary to some reports of an industry shortage, the overall supply of stevia is at its lowest price point since it arrived on the global stage over a decade ago.
To help address this time of economic uncertainty and volatility, HOWTIAN is pleased to announce some welcome news for the industry and our manufacturing customers. Effective immediately, we are implementing another significant price reduction for SoPure™ Stevia Reb A 97, our most popular stevia product.
HOWTIAN’s industry-high yield has been instrumental in this rapid progress toward reducing product costs. Additionally, our commitment to sustainability provides further compelling reason for manufacturers to choose our stevia, as our newest stevia variants require less land, water and energy to produce.
HOWTIAN’s commitment to innovation and our customers’ needs will undoubtedly contribute to the continued growth and success of the sugar replacement revolution in these turbulent times. Throughout the years, the company has seen a wealth of success in transitioning popular products to delicious, cost-effective alternatives. The new and improved pricing will only accelerate the pace of these sugar reduction success stories.
To illustrate the reduced pricing in action, below is an example of a formulation for a ready-to-drink beverage application, and the 37 to 40 percent cost savings yielded with different sugar reduction scenarios.
|Ingredients||Full Sugar||50% Reduced Sugar (+RA97)||50% Reduced Sugar Improved Taste (+Andromeda)|
|Dosage (g)||Dosage (g)||Dosage (g)|
|Unsweetened Lemonade Powder||0.37||0.37||0.37|
|SoPure™ Stevia – Reb A 97||–||0.02||–|
|SoPure™ Stevia – Andromeda||–||–||0.018|
|Cost Savings (%)||40.48%||37.14%|
HOWTIAN welcomes the world’s increasing demand for sugar alternatives and offers a wide range of readily adaptable solutions for a comprehensive variety of applications.
To learn more, please get in touch with one of our representatives.