PureCircle (LON:PURE) has increased its production capacity for stevia sweeteners to meet rising demand for the sugar-free alternative.
An increase in health-conscious consumers and the introduction of a sugar tax in the UK has led to an increase new product launches with stevia.
Data from the Mintel Global New Products Database showed releases of new products containing stevia across the globe rose 27% year-on-year in the first six months of the year.
Launches of new beverages containing stevia grew 33% in the first half while food products with stevia increased 23%.
Among the companies to release products with stevia leaf sweetener in the first half were The Coca-Cola Co (NYSE:KO), Danone, Grupo Bimbo, Kraft Heinz Co (NASDAQ:KHC), Nestle, PepsiCo In (NASDAQ:PEP), Seven & I Holdings, Calbee Foods and Unilever (LON:ULVR).
READ: PureCircle welcomes stevia sweetener Coca-Cola drink launch in New Zealand
“To meet this increase in demand, PureCircle has increased production capacity enabling it to supply significantly more of the best-tasting stevia sweeteners like Reb D and Reb M,” PureCircle said.
“That enables the company to provide customers the best-tasting stevia sweeteners in significant quantities and cost effectively. PureCircle works with a growing global network of farmers to source stevia leaf – and has begun working with farmers in North Carolina.”
Shares rose 3.4% to 333p in afternoon trading.
Stevia is extracted from the leaves of plant species Stevia rebaudiana, which is native to Brazil and Paraguay. The active compounds have up to 150 times the sweetness of sugar but Stevia contains zero calories.