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%.
As a result of its distinctive recipe, the boba tea fad has gained traction in other western nations including Canada and the U.K., where it has now spread. The trend has continued to flourish in its home region. This well-liked sweetened tea is created with premium milk, tapioca pearls for sweetness, creamer, and sweeteners, as well as fruit powder. As a sign of Taiwan's culinary innovation to advance its position within the food service sector, bubble milk tea has become a global cultural icon.
Fortune Business Insights™ presents this information in a report titled, “Bubble Tea Market, 2024-2032."
COVID-19 Impact:
Despite Initial Disruptions, Market Showed Robust Recovery in 2021 and After
Due to the COVID-19 outbreak, businesses such as restaurants, farms, and industries had to close down completely in order to maintain safety standards and institute social segregation. Due to a staffing deficit and fewer consumers visiting coffee shops during the lockdown, this has caused transportation delays and brought both the functioning of supplies (tea estates) and demand for consumption points to a standstill. The lockdown in the tea-growing regions has caused a decrease in crop quantity as well as difficulties in logistics and shipping, according to the Indian Tea Association 2020, which has caused an average increase in tea prices of 25%–40%.
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
The expanding consumer preferences for items in this era are influenced by a number of variables, including taste preferences, price, brand, and location accessibility. Due to all of these factors, tea manufacturers must create high-quality teas while considering consumer preferences. The rise in popularity of bubble milk tea is mostly ascribed to its flavor, accessibility, and ongoing reinvention of the traditional tea formula.
Due to the wide variety of boba teas, including fruit-flavored, green jasmine, and black tea-based milk teas, bubble milk tea has considerable market potential. For instance, a U.S.-based startup company called Bubluv Inc. introduced three flavors of tapioca starch and konjac-based boba tea in April 2022. These factors augment bubble tea market growth.
Regional Insights
Asia Pacific to Dominate As Consumers Explore New Beverage Options
The market in Asia Pacific, which was valued at USD 0.96 billion in 2022, had the highest share. The nations with the highest sales are anticipated to be Vietnam and Taiwan. To draw customers and increase their market share, manufacturers and business owners in the boba tea sector are opening their own cafes and restaurants. For instance, Chen Shucheng launched Meme Xpress, a new bubble milk tea franchise, in Singapore in September 2020.
The North America bubble tea market share emerged as the second-largest after Asia Pacific and is anticipated to hold onto that position for the duration of the projection period. The popularity of tea-based beverages is driving a modest increase in the consumption of this tea in North American nations. Meanwhile, the European market also saw a rise in pearl milk tea consumption around the same time as APAC countries.
Competitive Landscape
Key Players Bid to Launch Innovative Products to Keep Pace with Growing Consumer Popularity
To meet the growing consumer demand, top players are maximizing the functionality of the ingredients in boba drinks. To provide new tea varieties for a burgeoning market, businesses including Lollicup U.S.A. Inc., Gong Cha, Chatime, and others have made research and development investments. Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company are other key companies in the market. The major competitors in the market are franchising their companies into various locations as a result of their strong client popularity and 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)
