Kombucha, a fermented tea with a vinegary flavor, typically contains around 1% alcohol, leading some producers to encounter regulatory challenges. Suja Juice’s cautious approach to entering this market before addressing the alcohol issue is justified, as the presence of alcohol could deter health-conscious consumers. Nevertheless, the fermented beverage sector is experiencing nearly 30% growth, yet it remains underutilized in many households. For a brand like Suja Juices, which has quickly capitalized on other trends in this category, a kombucha launch is likely imminent—provided they can develop a non-alcoholic version.
Kombucha is just one of many fermented foods and beverages that have gained traction in recent years. Other examples include kimchi, a Korean pickled cabbage, and kefir, a tangy fermented milk, both of which offer “good bacteria” beneficial for digestion. According to MarketsandMarkets, the global kombucha market is projected to reach $1.8 billion by 2020, indicating it is a trend with longevity rather than a fleeting fad. Analysts attribute kombucha’s rising popularity to an increasing demand for healthier drinks beyond bottled water.
Even major carbonated soft drink manufacturers are entering the kombucha space; for instance, PepsiCo acquired KeVita, a maker of kombucha, sparkling probiotics, and vinegar tonics late last year. Additionally, Health-Ade, a kombucha producer, has attracted significant venture capital, including $7 million in Series B funding from CAVU Venture Partners, a fund that includes Rohan Oza, a former Coca-Cola executive and creator of Vitaminwater.
As a fast-growing niche in the beverage industry, kombucha presents opportunities for Suja Juice. If they can succeed in creating a non-alcoholic version, they could reach a new demographic of consumers, including children. Moreover, with the rising interest in health products, the incorporation of ingredients like calcium citrate could enhance the nutritional profile of kombucha, appealing to even more health-conscious individuals. This potential alignment with consumer trends could solidify the brand’s place in the expanding market for fermented beverages.