The global bubble tea market revenue, valued at USD 2.46 billion in 2023, is projected to grow to USD 2.63 billion in 2024 and reach USD 4.78 billion by 2032, reflecting a compound annual growth rate (CAGR) of 7.74%.
Originally created in Taiwan, bubble tea has become a global sensation, gaining significant popularity in Western markets like Canada and the U.K. This sweet and versatile beverage combines premium milk, liquid sweeteners, tapioca pearls, creamer, fruit powders, and various other ingredients. As a cultural symbol, bubble tea showcases Taiwan’s culinary innovation and its growing presence in the international food service industry.
According to Nextrends Asia 2021, Taiwan’s exports of pearl milk tea base components—such as raw materials, packaging, and equipment—have increased by an astounding 330% since 2018. Factors like the rise in gastronomic tourism, health-conscious consumer trends, and the influence of social media have fueled bubble tea’s global popularity.
This information is derived from the report “Bubble Tea Market, 2024-2032” by Fortune Business Insights™.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/bubble-tea-market-101564
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)
Segments:
Black Tea Segment Poised for Significant Growth from 2023 to 2030
The black tea segment is set to witness substantial growth during the forecast period, driven by increasing global health awareness. Valued for its antioxidant, anti-aging, and anti-diabetic properties, black tea is gaining traction among health-conscious consumers. The rising preference for natural and organic food and beverage products further supports the segment’s expansion. While green tea is projected to dominate a significant portion of the bubble tea market, black tea remains a close contender in terms of popularity.
Fruit Flavors Set to Gain Momentum
The bubble tea market is segmented by flavor, including coffee, fruit, chocolate, original, and others. In 2019, fruit flavors led the market, outpacing other categories in popularity. This segment offers a diverse array of options, such as lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, and lemon. With high nutritional value and growing consumer demand for tea-based fruity beverages, the fruit flavor segment is expected to experience robust growth throughout the forecast period. Meanwhile, the chocolate flavor segment is anticipated to grow at the fastest rate, fueled by the increasing demand for chocolate-infused 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 are shaped by various factors, including taste, price, brand reputation, and accessibility. To meet these demands, tea manufacturers must prioritize producing high-quality products tailored to these preferences. The rising popularity of bubble milk tea can be attributed to its delightful flavor, convenience, and continuous innovation in traditional tea recipes.
The bubble milk tea market offers diverse options, including fruit-infused blends, green jasmine tea, and black tea variations, underscoring its significant growth potential. For example, in April 2022, U.S.-based startup Bubluv Inc. launched three innovative boba tea flavors made with tapioca starch and konjac. These creative developments are instrumental in fueling the ongoing expansion of the bubble tea industry.
Regional Insights
Asia Pacific to Dominate As Consumers Explore New Beverage Options
In 2022, the Asia Pacific region led the bubble tea market, achieving a valuation of USD 0.96 billion. Vietnam and Taiwan are anticipated to be the primary contributors to bubble tea sales in this region. To attract consumers and strengthen their market presence, manufacturers and entrepreneurs are increasingly establishing dedicated cafes and restaurants. For example, in September 2020, Chen Shucheng launched the Meme Xpress bubble milk tea franchise in Singapore.
North America holds the second-largest share of the bubble tea market, following Asia Pacific, and is expected to retain this position throughout the forecast period. The rising popularity of tea-based beverages continues to drive bubble tea consumption in this region. Similarly, Europe is experiencing increased demand for pearl milk tea, reflecting trends seen in Asia Pacific markets.
Competitive Landscape
Key Players Bid to Launch Innovative Products to Keep Pace with Growing Consumer Popularity
To address growing consumer demand, leading players in the bubble tea industry are focusing on enhancing ingredient functionality in their beverages. Companies like Lollicup U.S.A. Inc., Gong Cha, and Chatime are investing in research and development to create innovative tea varieties that align with evolving market trends. Other key contributors, such as Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company, are also instrumental in driving industry growth. These major competitors are actively expanding their franchise networks into new regions, fueled by strong customer demand and positive market feedback.
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Key Industry Development:
October 2021: Del Monte launched Joyba Bubble Tea in selected outlets, including Costco, Circle K, Albertson’s, Target Stores, and Safeway.
