The global bubble tea market was valued at USD 2.46 billion in 2023. It 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, the bubble tea trend has successfully spread to Western countries, including Canada and the U.K., establishing itself as a beloved staple. This sweetened beverage combines high-quality milk, liquid sweeteners, tapioca pearls, creamer, fruit powders, and other sweeteners. As a cultural icon, bubble tea showcases Taiwan’s culinary innovation and its influence on the global food service industry. Notably, Nextrends Asia 2021 reported a staggering 330% increase in Taiwan’s exports of pearl milk tea base ingredients—including raw materials, packaging, and machinery—compared to 2018. The rise of gastronomic tourism, the increasing number of health-conscious consumers, and the impact of social media have all contributed to the growing popularity of bubble tea.
This information is presented in the report titled “Bubble Tea Market, 2024-2032” by Fortune Business Insights™.
Segments:
Black Tea Segment to Witness Monumental Demand During 2023-2030
As global health consciousness among consumers rises, the black tea segment is expected to grow significantly during the forecast period. Black tea is heavily promoted for its strong antioxidant, anti-aging, and anti-diabetic properties. A key factor driving the growth of this market segment is the increasing consumer preference for natural and organic food and beverage products. Additionally, the green tea segment is projected to capture a substantial share of the bubble tea market, closely followed by black tea.
Fruit Flavor to Experience Increasing Popularity in the Coming Years
The market is categorized into coffee, fruit, chocolate, original, and other flavor segments. In 2019, the fruit flavor category led the market, proving to be more popular than other flavors. This category includes a variety of taste options, such as lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, lemon, and others. Given its high nutritional content compared to other flavors, along with the popularity of tea-based fruity beverages and strong consumer preference, this segment is expected to experience significant growth throughout the forecast period. Furthermore, the chocolate segment is anticipated to grow at the fastest rate in the coming years, driven by the increasing 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 in today’s market are influenced by various factors, including taste, price, brand, and accessibility. As a result, tea manufacturers must focus on producing high-quality teas that meet these preferences. The increasing popularity of bubble milk tea can be attributed to its enticing flavor, ease of access, and ongoing innovation in traditional tea recipes.
The wide variety of bubble milk tea—including fruit-flavored, green jasmine, and black tea-based options—highlights its significant market potential. For instance, in April 2022, the U.S.-based startup Bubluv Inc. introduced three new flavors of boba tea made from tapioca starch and konjac. Such innovations play a crucial role in driving the growth of the bubble tea market.
Regional Insights
Asia Pacific to Dominate As Consumers Explore New Beverage Options
In 2022, the Asia Pacific market dominated the bubble tea industry, with a valuation of USD 0.96 billion. Vietnam and Taiwan are anticipated to be the leading markets for bubble tea sales. To attract customers and enhance their market presence, manufacturers and business owners are establishing their own cafes and restaurants. For instance, 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, following Asia Pacific, and is expected to maintain this position throughout the forecast period. The rising popularity of tea-based beverages is contributing to a gradual increase in bubble tea consumption across North American countries. Additionally, the European market has also witnessed a growth in pearl milk tea consumption, reflecting trends similar to those seen in Asia Pacific countries.
Competitive Landscape
Key Players Bid to Launch Innovative Products to Keep Pace with Growing Consumer Popularity
To meet the rising consumer demand, leading players in the bubble tea industry are enhancing the functionality of ingredients in their beverages. Companies such as Lollicup U.S.A. Inc., Gong Cha, and Chatime are investing in research and development to introduce new tea varieties to an expanding market. Other key players, including Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company, are also significant contributors to the industry. Major competitors are actively expanding their franchises into various locations, motivated by high customer popularity and favorable 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)
