The global bubble tea market size hit USD 2.46 billion in 2023. The market valuation is expected to grow from USD 2.63 billion in 2024 to USD 4.78 billion by 2032 at a CAGR of 7.74%.
The bubble tea trend, which began in its region of origin, has continued to thrive and expand into Western countries such as Canada and the U.K. Its unique blend has established bubble tea as a popular staple. This sweetened tea features high-quality milk, liquid sweeteners, tapioca pearls, creamer, fruit powders, and additional sweeteners. As a cultural icon, bubble tea highlights Taiwan’s food innovation and its impact on the global food service industry. For example, Nextrends Asia 2021 reported a 330% increase in Taiwan’s exports of pearl milk tea base ingredients (including raw materials, packaging, and machinery) compared to 2018. The rise in gastronomic tourism, the growing number of health-conscious consumers, and the influence of social media have all contributed to the expanding potential of bubble tea.
Fortune Business Insights™ presents this information in a report titled, “Bubble Tea Market, 2024-2032."
Segments:
Black Tea Segment to Witness Monumental Demand During 2023-2030
As more customers are becoming health-conscious worldwide, the black tea category is expected to rise at a considerable CAGR throughout the forecast period. Due to its potent antioxidant, anti-aging, and anti-diabetic qualities, black tea is heavily promoted. One of the key aspects that would support the expansion of this market segment is the increase in consumer preference for natural and organic food and beverage items. The green tea segment is anticipated to account for a sizable portion of the bubble tea market share, closely followed by black tea.
Fruit Flavor to Experience Increasing Popularity in the Coming Years
The market is divided into coffee, fruit, chocolate, original, and other taste categories. The market in 2019 was led by fruit flavor, which is more popular than other flavors. Lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, lemon, and other flavors are among the taste variations that are present in it. Due to its high nutritional content in comparison to other tastes, the high popularity of tea-based fruity beverages, and strong consumer preference, this market is predicted to increase significantly over the course of the forecast period. Due to the rising demand for beverages with chocolate as an ingredient across all age groups, the chocolate segment is predicted to develop at the quickest rate in the future years.
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 in today’s market are shaped by several factors, including taste, price, brand, and accessibility. Consequently, tea manufacturers need to produce high-quality teas that align with these preferences. The surge in popularity of bubble milk tea can be attributed to its appealing flavor, accessibility, and the continuous innovation of traditional tea recipes.
Bubble milk tea’s diverse range—encompassing fruit-flavored, green jasmine, and black tea-based options—demonstrates its significant market potential. For example, in April 2022, U.S.-based startup Bubluv Inc. launched three new flavors of boba tea made with tapioca starch and konjac. Such innovations contribute to the expanding growth of the bubble tea market.
Regional Insights
Asia Pacific to Dominate As Consumers Explore New Beverage Options
In 2022, the Asia Pacific market led the bubble tea industry with a valuation of USD 0.96 billion. Vietnam and Taiwan are expected to be the top markets for bubble tea sales. To attract customers and expand their market presence, manufacturers and business owners are opening their own cafes and restaurants. For example, Chen Shucheng launched the Meme Xpress bubble milk tea franchise in Singapore in September 2020.
The North American bubble tea market is the second largest after Asia Pacific and is projected to maintain this position throughout the forecast period. The growing popularity of tea-based beverages is contributing to a gradual increase in bubble tea consumption in North American countries. Additionally, the European market has also experienced a rise in pearl milk tea consumption, mirroring the trends observed in Asia Pacific countries.
Competitive Landscape
Key Players Bid to Launch Innovative Products to Keep Pace with Growing Consumer Popularity
To address the increasing consumer demand, leading players in the bubble tea industry are optimizing the functionality of ingredients in their drinks. Companies such as Lollicup U.S.A. Inc., Gong Cha, Chatime, and others are investing in research and development to offer new tea varieties to a growing market. Key players like Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company are also significant contributors to the market. Major competitors are expanding their franchises into various locations, driven by high customer popularity and positive response rates.
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)
