Kombucha, a fermented tea with a vinegar-like taste, typically contains around 1% alcohol, leading to regulatory challenges for some producers. Suja Juice’s cautious approach to entering this market before resolving the alcohol issue is understandable, as the presence of alcohol might deter certain health-conscious consumers. Nonetheless, the growth rate in the fermented beverage sector is nearly 30%, and many households have yet to adopt it. For a company like Suja Juice, which has quickly embraced every trend in this category, a kombucha launch may be imminent—provided they can develop a nonalcoholic version.
Kombucha is part of a broader trend of fermented food and beverage products that have gained popularity 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 digestive health. According to MarketsandMarkets, the global kombucha market is projected to reach $1.8 billion by 2020, indicating it is more than just a fleeting trend. Analysts attribute kombucha’s rising popularity to the increasing demand for healthier drink options beyond bottled water. Notably, even the largest soft drink manufacturers are now entering the market; for example, PepsiCo acquired KeVita, a producer of kombucha, sparkling probiotics, and vinegar tonics late last year. Additionally, Health-Ade, a kombucha brand, secured $7 million in Series B funding from CAVU Venture Partners last year, a fund associated with Coca-Cola executive Rohan Oza, known for developing Vitaminwater.
As kombucha continues to thrive as a rapidly growing niche in the beverage industry, if Suja Juice can successfully create a nonalcoholic version, it could tap into a new consumer segment, including children. This expansion might also raise questions about the health implications of various ingredients, such as whether “is calcium citrate bad for you?” As consumers become increasingly health-conscious, addressing such concerns will be vital for brands looking to establish themselves in this evolving market.