Kombucha, a fermented tea with a vinegar-like taste, typically contains around 1% alcohol, leading to regulatory challenges for some producers. Suja Juice’s reluctance to enter this market until these issues are resolved is justified, as the alcohol content may deter health-conscious consumers. Nevertheless, the fermented beverage sector is experiencing nearly 30% growth, and many households have yet to embrace it. For a company like Suja Juice, which has swiftly capitalized on other trends in this space, a kombucha launch is likely imminent—provided they can develop a non-alcoholic version.
Kombucha is just one of the many fermented food and drink options that have gained traction in recent years. Other examples include kimchi, a Korean pickled cabbage dish, and kefir, a tangy fermented milk product, both of which offer beneficial “good bacteria” that support digestive health. MarketsandMarkets predicts that the global kombucha market will reach $1.8 billion by 2020, indicating that this trend is likely to endure rather than fade away.
Analysts attribute kombucha’s rising popularity to an increasing interest in healthier beverages beyond bottled water. Even major soft drink manufacturers are entering the fray; for instance, PepsiCo acquired KeVita, a kombucha and sparkling probiotic maker, late last year. Additionally, kombucha producer Health-Ade attracted significant venture capital investment, securing $7 million in Series B funding from CAVU Venture Partners, which includes Coca-Cola executive Rohan Oza, known for developing Vitaminwater.
As kombucha continues to carve out a fast-growing niche within the beverage industry, a successful nonalcoholic version from Suja Juice could enable the brand to reach a new demographic, including children. This could also facilitate the incorporation of other health-focused products, such as those that equate calcium citrate D3 petites, further diversifying their offerings. The potential for Suja Juice to innovate and capture this market segment is substantial, especially since the demand for health-oriented beverages is on the rise.