The global bubble tea market revenue was valued at USD 2.46 billion in 2023 and is projected to grow from USD 2.63 billion in 2024 to USD 4.78 billion by 2032, reflecting a compound annual growth rate (CAGR) of 7.74%.
Originating in Taiwan, bubble tea has successfully expanded to Western countries, including Canada and the U.K., becoming a popular and beloved beverage. This sweetened drink combines high-quality milk, liquid sweeteners, tapioca pearls, creamer, fruit powders, and other sweeteners. As a cultural symbol, bubble tea represents Taiwan’s culinary creativity and its growing influence on the global food service industry. According to Nextrends Asia 2021, Taiwan’s exports of pearl milk tea base ingredients—including raw materials, packaging, and machinery—have seen a remarkable 330% increase since 2018. The rise of gastronomic tourism, the growing number of health-conscious consumers, and the influence of social media have all played significant roles in driving the increasing popularity of bubble tea.
This information is provided in the report titled “Bubble Tea Market, 2024-2032” by Fortune Business Insights™.
Segments:
Black Tea Segment to Experience Monumental Growth from 2023 to 2030
As global health awareness continues to rise, the black tea segment is expected to see significant growth during the forecast period. Known for its antioxidant, anti-aging, and anti-diabetic properties, black tea is gaining traction among health-conscious consumers. The increasing preference for natural and organic food and beverages is further driving the growth of this market segment. In addition, the green tea segment is expected to capture a substantial share of the bubble tea market, with black tea following closely behind in popularity.
Fruit Flavor Gaining Popularity in the Coming Years
The bubble tea market is divided into various flavor segments, including coffee, fruit, chocolate, original, and others. In 2019, the fruit flavor category dominated the market, proving to be more popular than other flavors. This category offers a variety of options such as lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, lemon, and more. Given its high nutritional value compared to other flavors and the increasing popularity of tea-based fruity beverages, the fruit flavor segment is expected to experience strong growth throughout the forecast period. Additionally, the chocolate flavor segment is anticipated to grow at the fastest rate, fueled by the rising demand for chocolate-flavored beverages across all age groups.
Report Coverage
The report offers:
- Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
- Comprehensive insights into regional developments.
- List of major industry players.
- Key strategies adopted by the market players.
- Recent industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers and Restraints
Expanding Range of Boba Tea Offerings to Augment Market Share
Consumer preferences today are shaped by a variety of factors such as taste, price, brand, and accessibility. As a result, tea manufacturers must focus on creating high-quality products that align with these preferences. The rising popularity of bubble milk tea is largely driven by its appealing taste, easy accessibility, and the constant innovation in traditional tea recipes.
The diverse range of bubble milk tea options, including fruit-flavored, green jasmine, and black tea varieties, showcases its vast market potential. For example, in April 2022, the U.S.-based startup Bubluv Inc. launched three new boba tea flavors made with tapioca starch and konjac. These kinds of innovations are key to driving the continued growth of the bubble tea market.
Regional Insights
Asia Pacific to Dominate As Consumers Explore New Beverage Options
In 2022, the Asia Pacific region led the bubble tea industry with a market valuation of USD 0.96 billion, with Vietnam and Taiwan projected to be the primary drivers of bubble tea sales. To capture consumer attention and expand their market share, manufacturers and business owners are opening their own cafes and restaurants. For example, in September 2020, Chen Shucheng launched the Meme Xpress bubble milk tea franchise in Singapore.
The North American bubble tea market ranks as the second-largest after Asia Pacific and is expected to maintain this position throughout the forecast period. The growing popularity of tea-based beverages is driving a steady rise in bubble tea consumption across North America. Similarly, the European market has also experienced an uptick in pearl milk tea consumption, following trends seen in Asia Pacific countries.
Competitive Landscape
Key Players Bid to Launch Innovative Products to Keep Pace with Growing Consumer Popularity
To address the growing consumer demand, key players in the bubble tea industry are improving the functionality of ingredients in their beverages. Companies like Lollicup U.S.A. Inc., Gong Cha, and Chatime are investing in research and development to introduce innovative tea varieties to meet the needs of an expanding market. Other important contributors, such as Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company, are also playing a significant role in shaping the industry. These major competitors are actively expanding their franchise operations into new locations, driven by high customer demand and positive market feedback.
Key Industry Development:
October 2021: Del Monte launched Joyba Bubble Tea in selected outlets, including Costco, Circle K, Albertson’s, Target Stores, and Safeway.
List of the Companies Profiled in the Report:
- Chatime Group (China)
- Gong Cha (Taiwan)
- Coco Fresh Tea & Juice (Taiwan)
- Quickly (U.S.)
- Xing Fu Tang (Taiwan)
- Lollicup USA, Inc. (U.S.)
- TIGER SUGAR (China)
- Yummy Town (Cayman) Holdings Corporation (Happy Lemon) (Taiwan)
- O.I. The Co, LTD. (Taiwan)
