Kombucha, a fermented tea known for its vinegar-like flavor, typically contains around 1% alcohol, which has led to regulatory challenges for some producers. Suja Juice’s cautious approach to entering this market is well-founded, as the presence of alcohol could deter various health-conscious consumers. Nevertheless, the fermented beverage sector is experiencing nearly 30% growth, with many households yet to embrace it. For a company like Suja Juice, which has been quick to capitalize on trends in this category, a kombucha launch may be imminent—provided they can develop a non-alcoholic version.
Kombucha is just one of many fermented food and drink items that have gained traction in recent years. Other examples include kimchi, a Korean pickled cabbage dish, and kefir, a tangy fermented milk that offers “good bacteria” beneficial for the digestive system. According to MarketsandMarkets, the global kombucha market is projected to reach $1.8 billion by 2020, indicating it is more than a fleeting trend. Analysts attribute kombucha’s rising popularity to a growing desire for healthier beverages beyond bottled water. Even the largest manufacturers of carbonated soft drinks are now joining the fray; PepsiCo acquired KeVita, a producer of kombucha, sparkling probiotics, and vinegar tonics, late last year. Additionally, Health-Ade, another kombucha maker, has garnered venture capital support, securing $7 million in Series B funding from CAVU Venture Partners, which includes partners like Coca-Cola executive Rohan Oza, known for developing Vitaminwater.
Furthermore, kombucha is part of a broader movement toward functional beverages, which often include beneficial ingredients such as calcium citrate malate and vitamin K2. These nutrients are increasingly recognized for their health advantages, which could help attract more consumers to the kombucha category. If Suja Juice can successfully create a nonalcoholic kombucha that incorporates elements like calcium citrate malate and vitamin K2, it could open doors to a new consumer segment, including families and children. Kombucha continues to be a rapidly expanding niche in the beverage industry, and its potential remains significant, especially as health trends evolve.