Bubble Tea Market

Market Study on Bubble Tea: Over 1/3 Market Share Held by Black Tea

Bubble Tea Market Segmented By Black Tea, Green Tea, Oolong Tea, White Tea Base Ingredient with Unflavored Bubble Tea, Flavored Bubble Tea in Ready-to-Drink Bubble Tea, Instant Bubble Tea Mix Kits with Tapioca Pearls, Popping Boba, Jellies Topping

Bubble Tea Market Outlook (2022-2032)

Global consumption of bubble tea stood at around US$ 1.46 Bn in 2022, and the market is slated to increase at a high CAGR of 8.3% to reach a valuation of US$ 3.23 Bn by 2032.

Bubble Tea Market Size (2022E)

US$ 1.46 Bn

Projected Sales of Bubble Tea (2032F)

US$ 3.23 Bn

Value CAGR (2022-2032)

8.3%

Value Share of Top 5 Countries (2022A)

53%

The South Asia and Pacific region is projected to hold more than 25% of the global market value share for bubble tea through 2032. As of 2022, by value, worldwide consumption of bubble tea accounted for around 4% to 5% of the global ready-to-drink tea market share.

Find Out More about the Report Coverage

Companies

  • Gong Cha
  • Kung Fu Tea
  • Tiger Sugar
  • Sharetea
  • Boba Guys
  • Tapioca Express
  • Chatime
  • Tea Ren’s Tea Time
  • CoCo Fresh Tea & Juice
  • Quickly
  • Happy Lemon
  • DaBoba
  • Cojiitii
  • TACHUNGHO
  • Others (On Additional Request)

Bubble Tea Consumption Statistics (2017-2021) Vs Market Estimations (2022-2032)

During 2017-2021, the global bubble tea target market expanded at a value CAGR of 6.3%.

Increased demand for bubble tea has been fuelled by pearl milk tea, which is becoming increasingly popular as one of the healthier alternatives to carbonated beverages.

Consumers are looking for beverages prepared with natural ingredients, and demand for unusual flavors is on the rise. Customization is a big reason why these drinks are becoming so popular. A tea base establishes the flavor, which can be improved with fruit flavors such as mango, lychee, and many others.

Customers can choose from traditional tapioca pearls, popping boba (tapioca pearls that explode with fruit juice when chewed), lychee jellies, or aloe vera pieces for texture.

Over the 2022-2032 forecast period, worldwide consumption of bubble tea is predicted to surge at a CAGR of 8.3%.

bubble-tea-market

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How is Demand Growth of Bubble Tea Being Bolstered?

“Use of Healthy Ingredients Driving Bubble Tea Consumption”

Consumer preferences in the beverage industry are rapidly changing. People are seeking foods and beverages that have healthy ingredients as they become more aware of health and health-related issues. As a result, bubble tea manufacturers are focusing on using distinctive and fresh ingredients such as fresh fruits, organic cream, soy milk, and various others. The nutritional content, flavor, and texture of bubble tea are all being improved with these ingredients.

Milk tea has a variety of health benefits, such as adding milk to any beverage is not only delicious but also good for health. Bubble tea contains beneficial properties such as antioxidants and calcium, which provide body strength and make the bones strong.

The carbohydrate content in bubble tea is one of the primary sources of energy required for the brain. It also serves as fuel to the heart muscles and the central nervous system. As a majority of people are working professionals, there are a lot of stressful activities during the day which need to be fulfilled.

Drinking boba tea reduces the tension in the muscles in the body, making it possible to carry out regular tasks easily. It also contains caffeine, which refreshes the body to improve memory and mental functioning of the body.

One of the health benefits of bubble tea is that it boosts the immune system and includes a wide range of antioxidants that prevent oxidative stress from accumulating. Fresh fruits, such as passionfruit and strawberry, can also be added to bubble tea for a variety of adaptations.

Obesity and diabetes, which are also typically linked to sugar consumption, have prompted customers to switch to sugar substitutes such as stevia, agave, and honey. These natural sweeteners are increasingly being used to replace sugar in bubble tea drinks. This is excellent news for health-conscious people and the diabetic population.

“Rising Popularity of Cafés & Quick Service Restaurants Propelling Demand for Bubble Tea”

Rising demand for bubble tea is largely attributable to the expanding popularity of cafés and quick service restaurants in Asia, particularly due to Starbucks' rapid development in the region. Following the launch of companies such as Chatime, Koi, and Tiger Sugar, among others, in cities across Asia that offer the bubble tea version of café culture, the bubble tea fad has only increased.

Coffee shops and cafés are the fastest-growing foodservice categories, particularly in South Asia and Pacific countries. Because of its unique flavors, convenience, and personalized requirements, consumers in this region are predicted to consume more bubble tea. Sales of bubble tea beverages are likely to increase due to growing popularity of the café culture and consumer demand for innovative and unique food & beverage products.

Multinational bubble tea café and foodservice firms are focusing on growing their outlets in emerging markets to attract more customers. Untapped countries are likely to provide significant growth opportunities for bubble tea suppliers.

The cost to make one cup of bubble tea is very minimum. Ingredients such as tapioca pearls, bubble tea powder, and tea leaves are purchased in bulk quantity, which helps making huge quantities of bubble tea at less cost. Moreover, teas may include multiple toppings besides the standard boba, including flavored jellies, red beans, and puddings.

“Market Players Releasing New Innovative Bubble Tea Flavors”

To appeal to the millennial generation, companies are focusing on introducing creative beverages with a variety of flavors such as apple, dry fruits, milk flavors, and many more. Manufacturers have an opportunity to introduce new flavored drinks into the market because millennials are known for their excitement to try new flavors.

Lowering sugar intake or substituting brown sugar for artificial sweeteners can be beneficial, but it is not without risk. Choosing the right ingredients and minimizing the sugar level, in combination with other healthy flavoring syrup options, can be helpful to health. It is always better to consume bubble tea in moderation, even if there is a healthier version of regular bubble tea.

Over the forecast period, sales of bubble tea are expected to grow as flavored bubble tea offers a strong potential for manufacturers. Companies are also focusing on reaching the consumer base in several untapped markets to generate sales and increase revenue.

There are several regions where bubble tea is exported from other countries. As a result, premium products have a higher cost, which has an impact on the sales in these areas. Companies are concentrating their efforts on expanding and manufacturing premium bubble tea in these regions, leading to comparatively low costs.

Low market penetration in a few places, along with the high costs of premium goods provides an opportunity for bubble tea drink manufacturers to expand in untapped markets.

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What Issues are Restraining Sales of Bubble Tea?

“High Preference for Healthy Beverages Might Hamper Market Expansion”

Bubble tea has a higher sugar content as compared to other drinks, and consumers are becoming more conscious of the negative health effects of too much sugar in these drinks, which can lead to health problems.

Bubble tea has approximately 400 calories; hence it's not something that should be consumed on a regular basis. This high sugar level can lead to diabetes, tooth decay, and deterioration in the body's immunity. It is also high in carbohydrates and lacks all the vital nutrients such as vitamins, minerals, fiber, etc.

Various specialists have highlighted how high-calories calculations might harm one's health if ingested on a daily basis, and this is predicted to limit bubble tea market growth. Furthermore, customers are shifting their preferences toward organic beverages as a result of the presence of artificial preservatives in some bubble tea variants, hampering global bubble tea market growth.

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Country-wise Insights

Which Country is holding a Major Share in the Europe Bubble Tea Market?

The U.K. bubble tea market holds a major share in Europe and is expected to expand at a CAGR of 8.5% through 2032.

Bubble tea sales in the U.K. are expected to reach a market valuation of US$ 134.5 Mn by 2032 as people are highly enthusiastic and willing to try new beverages in the country.

Who is Leading Market Growth in Latin America?

In the Latin American region, the Brazil bubble tea market is expected to expand at a CAGR of 8.6% over the forecast period (2022-2032).

Rising product awareness is leading to rapidly rising demand for bubble tea, which will promote market growth in the country.

Category-wise Insights

Which Bubble Tea Toppings are Most Popular?

Based on topping, the tapioca pearls category has the largest market share; however, popping boba, jellies, and other segments of bubble tea are anticipated to boost overall sales even more because of the innovations and flavors offered by manufacturers.

Market value share of tapioca pearls is 36.3% in 2022, which is projected to be valued at US$ 1.19 Bn by the end of 2032.

Why are Business to Consumer Sales of Bubble Tea Higher?

On the basis of distribution channel, business to consumer sales of bubble tea are expected to show promising growth and register a CAGR of 8.5% during the forecast period (2022-2032).

The segment is expected to reach US$ 2,141.2 Mn by 2032. As people are more interested in ready-to-drink cans and instant mix kits, this segment is expected to proliferate over the coming years.

Competitive Landscape

Prominent manufacturers of bubble tea are focusing on expanding their market share by entering into new markets as it helps gain a competitive advantage and allows branding opportunities by establishing multiple revenue streams.

  • Gong Cha offers an assortment of delicious tea flavors in New York City and New Jersey. Gong Cha tea is available in more than 1,650 cafes across 20 countries, and the company is open to expanding its business by a franchise model.
  • Sharetea has more than 450 stores in 16 countries such as the United States, Canada, U.K., Australia, Singapore, Malaysia, the Philippines, and Indonesia, with different franchise models and branches.
  • Tiger Sugar has its presence in Europe, Asia, Taiwan, Oceania, and America. It is expanding its presence by opening branches in Hong Kong, Korea, Afghanistan, Germany, and many others.
  • Chatime has over 125 outlets in Australia with more than 1,000 outlets in 30 countries such as Taiwan, Malaysia, China, India, Macau, Vietnam, Singapore, Hong Kong, Thailand, Korea, the Philippines, Indonesia, Australia, Dubai, Vietnam, Canada, U.K., Mexico, and the United States.

Bubble Tea Industry Report Scope

Attribute

Details

Forecast period

2022-2032

Historical data available for

2017-2021

Market analysis

USD million for Value

Key regions covered

  • North America
  • Latin America
  • Europe
  • South Asia and Pacific
  • East Asia
  • The Middle East Africa

Key countries covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • BENELUX
  • Nordic
  • Poland
  • Russia
  • India
  • ASEAN
  • Oceania
  • China
  • Japan
  • South Korea
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key market segments covered

  • Base Ingredient
  • Flavor
  • Format
  • Topping
  • Distribution Channel
  • Region

Key companies profiled

  • Bobble Bobble
  • Yen Chuan International Co., Ltd
  • Gong Cha USA
  • Empire Eagle Food Co., Ltd.
  • Quickly Corporation
  • Boba Guys, Inc.
  • Chatime
  • 8tea5
  • Kung Fu Tea
  • Ten Ren Tea, Inc.
  • Tapioca Express, Inc.
  • Boise Boba
  • Woop Bubble Tea
  • Coco Tea
  • Sharetea
  • BobaTea Factory
  • Possmei international Co., Ltd
  • Bubble Tea House Company
  • The Inspire Food Company
  • TACHUNGHO

Report coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Bubble Tea Industry Survey by Category

Bubble Tea Market by Base Ingredient:

  • Black Tea
  • Green Tea
  • Oolong Tea
  • White Tea

Bubble Tea Market by Flavor:

  • Unflavored Bubble Tea
  • Flavored Bubble Tea
    • Taro
    • Coffee
    • Fruit Flavors
    • Others

Bubble Tea Market by Format:

  • Ready-to-Drink Bubble Tea
  • Instant Bubble Tea Mix Kits

Bubble Tea Market Topping:

  • Tapioca Pearls
  • Popping Boba
  • Jellies
  • Others

Bubble Tea Market by Distribution Channel:

  • Business to Business Sales of Bubble Tea
  • Business to Consumer Sales of Bubble Tea
    •  Hypermarkets/Supermarkets
    • Convenience Stores
    •  Online Retail

Bubble Tea Market by Region:

  • North America Bubble Tea Market
  • Latin America Bubble Tea Market
  • Europe Bubble Tea Market
  • South Asia and Pacific Bubble Tea Market
  • East Asia Bubble Tea Market
  • The Middle East and Africa Bubble Tea Market

Media Release

- FAQs -

The global bubble tea market is currently valued at over US$ 1.46 Bn.

Increasing use of healthy ingredients, rising popularity of cafés and quick service restaurants, manufacturers highlighting the health benefits of bubble tea, and steady shift in consumer preference toward flavored teas are bolstering demand for bubble tea.

From 2017 to 2021, bubble tea sales increased at a CAGR of 6.3%.

Sales of bubble tea are projected to surge at 8.3% CAGR and be valued at US$ 3.23 Bn by 2032.

Top producers of bubble tea include Tea Ren's Tea Time, Lollicup USA, Chatime, YiFang Bubble Tea, and Kung Fu Bubble Tea, together accounting for an approximate market share of 5%-15%.

The U.K. bubble tea market in Europe is predicted to progress at around 8.2% CAGR.

The U.S., ASEAN, China, India, and Canada account for highest bubble tea consumption.

The North America bubble tea market is anticipated to reach 84,159 tons by the end of 2032.

The Oceania bubble tea market is anticipated to reach US$ 126.5 Mn by 2032.

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