April 14, 2016

PureCircle, the leading global producer of stevia products for the food and beverage industries, has announced it will invest up to $200 million over the next five years to establish a stevia supply chain in India following that country’s approval of the ingredient.

Under the company’s plan, PureCircle intends to partner with Indian farmers to plant 5,000 hectares of stevia and to build a processing facility within the country.

“We have long-term plans in India,” PureCircle CEO Magomet Malsagov told FoodIngredientsFirst. “Over the next five years, our investments could go up to $200 million across a range of activities from farming to manufacturing and application infrastructure.”

With advances in processing resulting in improved texture and taste and greater consumer confidence, Stevia has been gaining market share within the greater sweetener space. The value of stevia as an additive in the food and beverage industries totaled $110 million in 2013 according to data from Mintel and Leatherhead Food Research, however, this is expected to grow to $275 million by 2017.

India is the last major global market to grant approval for stevia leaf extract to be used as a sweetener, giving PureCycle access to a market of one billion consumers and the opportunity for investment.

“Our investment in India signals the huge potential we see in this market for stevia as a sweetener and as an agricultural commodity,” said Jason Hecker, PureCircle’s President of Group Sales and Marketing in a company statement.  “We believe this plant can not only help farmers in the region earn extra income, but also help to naturally reduce calories for Indian consumers while maintaining the sweet tastes they want.”

The company will be working directly with Indian farmers through its PureCircle Stevia Agronomy Program, teaching growers how to sustainably grow the crop (called Meethi Tulsi and Meethi Patti by Indian farmers) and offering each farmer a contract detailing a fixed price for the stevia produced. A farmer cultivating one hectare of stevia can be expected to earn Rs 400,000, or US$6,000 per year.

“Across the globe, PureCircle’s portfolio of innovative stevia sweeteners and flavors has enabled major brands to reformulate full sugar products with this natural, zero-calorie solution to address consumer demands,” said Ajay Chandran, Senior Director for South Asia Region. “We feel confident that stevia’s approval in India will lead to new, lower calorie taste innovation for this market and help consumers significantly reduce their sweet calorie intake.”