Chi Forest, formerly known as Genki Forest, has significantly expanded its U.S. market presence through a nationwide Costco partnership since January 2025. This strategic move has positioned the brand’s products in 591 U.S. and 109 Canadian Costco locations, marking a major milestone in their North American expansion. After initially establishing a foothold in Asian supermarkets four years ago, Chi Forest has successfully broadened its appeal in the competitive functional beverages sector. The company’s growth trajectory demonstrates how international beverage brands can effectively cross over into mainstream American retail channels.
The Rising Wave of Healthy Sparkling Waters
Chi Forest has entered the U.S. market with its signature product line – premium flavored sparkling waters that check all the boxes for health-conscious consumers. Their current Costco offering features four distinct flavors: White Peach, Lychee Fizzy, Grape Delight, and Orange. Each variety maintains an impressive health profile, being sugar-free, calorie-free, caffeine-free, gluten-free, and vegan-friendly.
These beverage attributes align perfectly with the growing demand for functional drinks with health benefits. The brand’s focus on zero-sugar formulations responds directly to increasing consumer concerns about excessive sugar consumption and its health implications. Chi Forest’s sparkling waters offer a refreshing alternative to sugary sodas without sacrificing flavor, making them particularly attractive to younger demographics seeking better-for-you options.
The timing of Chi Forest’s U.S. expansion couldn’t be better as the sparkling water category continues to experience robust growth. American consumers increasingly favor beverages that deliver on taste while supporting overall wellness goals. As more shoppers prioritize clean labels and natural ingredients, Chi Forest’s product lineup positions the brand to capitalize on these shifting preferences.
What sets Chi Forest apart from competitors is their flavor development. Unlike many sparkling waters that offer subtle hints of fruit, Chi Forest delivers more pronounced flavor profiles while maintaining zero sugar and calories. This approach bridges the gap between traditional sodas and typical sparkling waters, providing a satisfying middle ground for consumers transitioning to healthier options.
Strategic Market Entry and Cultural Crossover
Chi Forest’s approach to entering the highly competitive U.S. beverage market demonstrates careful planning and cultural awareness. According to Candy Tang, Head of International Business, the company employed a two-pronged strategy: “We do have a competitive product, which is our sparkling water… Second, we generate some of our awareness and popularity in the Asian population first.” This strategic foundation allowed the brand to build a loyal customer base before pursuing mainstream retail partnerships like Costco.
The initial focus on Asian supermarkets created a solid foundation of brand advocates who were already familiar with Chi Forest from its success in Asian markets. These early adopters helped generate word-of-mouth momentum that eventually caught the attention of major retail buyers. The gradual expansion from specialty stores to nationwide distribution represents a smartly executed market entry strategy.
Tang’s insights highlight how international brands can successfully navigate cultural differences when entering new markets. By first connecting with consumers who share cultural ties to their origin market, Chi Forest established credibility that later translated to broader appeal. This approach mirrors successful entries by other Asian food and beverage brands that have won over American palates in recent years.
The Costco partnership marks a significant achievement, opening access to millions of shoppers across North America. Costco’s reputation for carefully curating its product selection adds an implicit endorsement of Chi Forest’s quality and market potential. For many consumers, discovering a brand through Costco creates an immediate sense of trust and value perception.
Meeting Global Demand for Healthier Choices
The core philosophy driving Chi Forest’s product development aligns with a broader global shift toward healthier consumption patterns. As Tang observes, “The pursuit for healthy beverage offerings is such a big trend across the globe.” This insight informs not only the company’s current lineup but also its future innovation pipeline.
Today’s consumers are increasingly informed about nutrition and ingredients, scrutinizing labels more carefully than previous generations. Chi Forest’s transparent ingredient approach responds to this heightened awareness, offering products that consumers can feel good about drinking regularly. The absence of artificial sweeteners, preservatives, and other additives appeals to shoppers seeking cleaner options.
Health-conscious millennials and Gen Z consumers represent a particularly important demographic for Chi Forest. These younger shoppers are driving significant changes in beverage industry trends, favoring brands that align with their values and lifestyle choices. The vegan-friendly status of Chi Forest products further expands their appeal to these influential consumer segments.
Beyond personal health considerations, environmental sustainability factors increasingly influence purchasing decisions. Chi Forest’s commitment to responsibly sourced ingredients resonates with consumers who consider the broader impact of their buying choices. As the functional beverage landscape evolves, brands that balance personal and planetary health concerns will likely see continued growth.
Innovation Pipeline and Market Expansion
Chi Forest isn’t resting on the success of its sparkling water line. The company has ambitious plans to introduce new products tailored to different international markets. For Australia and New Zealand Costco locations, Chi Forest is preparing to launch iced teas and herbal drinks that maintain the brand’s health-focused positioning while expanding category presence.
Indonesia represents another growth opportunity, with new product launches scheduled for summer 2025. These expansion efforts demonstrate Chi Forest’s commitment to becoming a global player in the functional beverage space. Each new market entry allows the company to test and refine its understanding of regional taste preferences and shopping behaviors.
The company’s innovation strategy centers on developing beverages that address specific wellness concerns while delivering exceptional taste experiences. As consumer interest in functional food and drink options continues to grow, Chi Forest is positioned to introduce products with targeted health benefits beyond hydration. Potential areas for development include gut health support, immune function enhancement, and energy management.
Looking ahead, industry analysts expect Chi Forest to continue expanding its U.S. retail presence beyond Costco. Additional distribution channels could include conventional grocery, natural food specialists, and e-commerce platforms. The brand’s digital presence will likely play an increasingly important role in building consumer relationships and driving trial among new customers.
Flavors That Cross Cultural Boundaries
One of Chi Forest’s strengths lies in its flavor selection, which bridges Eastern and Western taste preferences. The current lineup available at Costco showcases this cross-cultural appeal. White Peach offers a familiar profile for American consumers, while Lychee Fizzy introduces a distinctly Asian fruit flavor that’s gaining popularity in Western markets.
These flavor choices reflect broader trends in the food and beverage industry, where global flavor exploration continues to accelerate. American consumers increasingly seek authentic international taste experiences, creating opportunities for brands that can deliver novel flavors in accessible formats. Chi Forest’s approach strikes this balance effectively, offering exotic options alongside more familiar profiles.
The Grape Delight and Orange varieties round out the selection with universally appealing options that provide entry points for more cautious consumers. This thoughtful flavor strategy ensures the brand can attract a wide range of shoppers with varying taste preferences and adventurousness levels. For retailers like Costco, such versatility makes the product an attractive addition to beverage aisles.
Looking at industry trends, Chi Forest’s flavor development matches the direction of the broader beverage market. Complex, authentic fruit profiles are replacing artificial approximations as consumers develop more sophisticated palates. The brand’s commitment to creating genuine taste experiences without relying on sugar or artificial sweeteners represents a significant technical achievement that differentiates its products in the marketplace.
For those interested in trying Chi Forest products, they can be purchased at local Costco stores or through Costco’s website. The variety pack offers an excellent introduction to the brand’s range of flavors. I’ve found that serving these sparkling waters well-chilled maximizes their refreshing qualities and flavor impact. Submitting your own recipe ideas using these sparkling waters as ingredients or mixers could create exciting new culinary applications.
As functional beverages continue gaining momentum in the U.S. market, Chi Forest’s expansion represents an important case study in successful cross-cultural brand building. The company’s strategic approach to market entry, commitment to health-focused innovation, and thoughtful flavor development provide valuable insights for other international brands with global aspirations. With distribution now secured at one of North America’s most influential retailers, Chi Forest appears well-positioned for continued growth in the competitive functional beverage landscape. Finding local dessert shops that might soon carry these beverages could expand your opportunities to enjoy these refreshing drinks alongside other treats.