Bubble Tea Market Analysis - Industry Report - Trends, Size & Share 2022-2030

Industry Prospective:

The global bubble tea market size was worth around $3.12 Billion in 2021 and is predicted to grow to around $7.82 Billion by 2030 at a CAGR rate of 9.01% over the forecast period. In this report, we will cover the full overview, growth drivers, opportunities, and obstacles of the bubble tea market from 2022 to 2030.

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Bubble Tea Market: Overview

Bubble tea is a Taiwanese beverage invented in Taichung. Bubble tea recipes usually entail a tea base mixed with fruit or milk along with the bubbling tapioca balls to make it chewier. Fruit jellies are a staple addition to this recipe to make it more delectable.

There are two versions in which the drink is devoured, one is the ice-blended and the other is the normal hot one. The ice-blended version is mixed with syrup and is squashier than the normal version. A wide range of ingredients is added to the beverage to give some variety to the drink. The main classifications of bubble tea include bubble milk tea with tapioca balls and bubble milk green tea with tapioca.

Bubble tea is also known by different names such as boba juice, boba tea, bubble milk tea, or pearl tea. The flavors which are common for bubble tea are lychee, honeydew, passion fruit, mango, plum, coffee, strawberry, and chocolate. The tapioca balls used in the tea also differ to give different textures to the tea while also varying in flavors according to the preference of people. It is widely consumed in the prominent western regions making it a staple drink or a common refresher.

Covid-19 Impact:

Covid-19 had an extensively negative impact on the global bubble tea market. Strict closures of restaurants, farms, and supermarkets led to a sudden standstill in the supply of the product thereby bringing down the consumption as well. The transportation delays and shortage of manpower in major commercial outlets also led to a reduction of customer visits and demand during the lockdown. The tea cost along with its raw ingredients went up due to the travel ban and reduction of crop size declining the tea export considerably. These paralyzed logistics movements hampered the market growth considerably.

Key Insights

• As per the analysis shared by our research analyst, the global bubble tea market is expected to grow annually at a promising CAGR of around 9.01% during the forecast period 2022-2030.
• In terms of revenue, the global bubble tea market was worth around $3.12 billion in 2021 and is predicted to grow to around $7.82 billion by 2030.
• An incessant rise in the health consciousness of people to consume healthy drinks such as green tea, black tea, and white tea indirectly induces growth in the global bubble tea market.
• Based on ingredient, the black tea segment held the largest market share in 2021.
• Based on flavor, the fruit segment held the dominating market share in 2021.
• Based on region, the North American region held the largest market share in 2021.

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Bubble Tea Market: Growth Drivers

Rising popularity and availability of a wide range of beverage attracting millennials drives market growth

The rising popularity of bubble tea aids in the increased attention of the growing market. An incessant rise in the health consciousness of people to consume healthy drinks such as green tea, black tea, and white tea indirectly induces growth in the global bubble tea market. Moreover, the rise in consumption of flavored bubble tea amongst the younger generation seems to have spiked up the demand. Apart from all this the commercial endorsements and advertisements supporting the drink are aiding the market to grow excessively.

Varieties available in bubble tea such as fruit-flavored, green, jasmine, and black tea also increase its leverage by catering to even lactose-intolerant people thereby boosting the market growth. Many commercial outlets on the rise across the world are launching new flavors and formulations by attracting millennials exclusively. This factor acts as a growth driver for the global market promptly.

The sweeteners added to the bubble tea are honey, syrups, or agave which are a fitting alternative to sugar. Hence patients with obesity or diabetes have shifted towards consuming bubble tea to a large extent. This shift in consumption is also seen as a probable growth factor for the global market.

Bubble Tea Market: Restraints

Excess sugar content and rampant availability of caffeinated drinks act as restraint for global market growth

The sugar content in these drinks is the reason for health issues such as diabetes and obesity. This factor impedes bubble tea industry growth to a large extent. The presence of preservatives in bubble tea also makes people shift their preference to organic beverages, which indirectly impacts the market negatively. Apart from this, the wide availability and the popularity of coffee over any other drink along with its enhanced consumption act as restraints for the growth of the global bubble tea market.

Bubble Tea Market: Opportunities

Recent emergence of various new flavors and increasing demand amongst the millennials for bubble tea are greater opportunities for the global market

There has been a recent introduction of various new flavors and blend versions which trigger high demand amongst the younger generation. This factor provides lucrative opportunities for global bubble tea market expansion. Alternative options such as black, green tea, and white tea have attracted lactose-intolerant people as well. This availability of different options will draw more attention thereby providing an opportunity for market growth.

Bubble Tea Market: Challenges

The increase in demand has led to massive production which poses a challenge to the market

Tea production in western countries has gone up because of the increasing demands in western countries and amongst the young working population across the world. This triggers an increase in the sales of the product along with production. The availability of infrastructure, equipment, and raw components needed for this massive production to satisfy the shooting up demands of the people will be a major challenge for the global bubble tea market.

Rising raw components prices are a bigger challenge to the global market

Some additives, preservatives along sweeteners are added to the bubble tea as ingredients. The inflation in the prices of these raw ingredients increases the production cost of bubble tea. Hence this increase in the cost of raw components to make bubble tea indirectly poses a challenge to the global bubble tea market considerably.

Bubble Tea Market: Segmentation

The global bubble tea market in this research analysis is divided into ingredient, flavor, component, and region.

The type is classified as black tea, green tea, oolong tea, and white tea. The black tea segment held the largest market share in 2021 and is further predicted to occupy a dominant status during the forecast period. The major reason for the growth of this segment is the natural and genuine flavor of black tea.

The flavor is divided based on original flavor, coffee flavor, fruit flavor, chocolate flavor, and others. The fruit flavor segment held the largest market share in 2021 and is further expected to maintain the dominant status during the forecast period. The reason for the growth of this segment is mainly attributed to changes in lifestyle and subsequently the preference among consumers as they tend to incline towards beverages that are healthy and tasty at the same time.

Distribution channels are hypermarkets, convenience stores, specialty stores, supermarkets, and non-store-based.

Finally, the components consist of sweetener, liquid, flavor, creamer, tapioca pearls, and others.

Recent Developments:

• In February 2019, Boba Box Limited introduced 14 new flavors in the European market.
• In April 2020, Bubble Tea Supply Inc announced the introduction of bubble tea with a range of tastes including traditional milk, mango, lychees, etc. with additional 14 toppings.
• In April 2022, BUBLUV, Inc., an innovative New York-based company, announced the launch of its first ready-to-drink beverage called BUBLUV Bubble Tea. It is a refreshing beverage and gives a light sweet taste. The bottle carries less than 50 calories and has zero artificial ingredients and zero added sugar. In addition, BUBLUV Bubble Tea is not only gluten-free but also keto-friendly.
• In January 2023, BobaBam, a Los Angeles-based beverage company, announced the launch of its new flavors namely Milk Tea and Taro. The company is launching these variety packs across the West Coast and Northeast at more than 200 locations. Every pack of their pristine flavors is completely gluten-free, nut-free, vegan, and non-GMO.

Bubble Tea Market Report Scope:

Bubble Tea Market: Regional Landscape

North America region held the largest market share in 2021 and is further expected to grow rapidly

North America dominates the global bubble tea market as the largest consumer of bubble tea due to its therapeutic effect and health benefits it offers for the prevention of cardiovascular diseases, cancers, and lowered cholesterol. Owing to the increase in the health consciousness of people in this region, the market here is about to witness prominent growth. The bubble tea market in Asia Pacific region is also experiencing rapid growth due to the increasing popularity and leverage of bubble tea that prevails here. The wide varieties of flavors along with high disposable income boosts greater growth in this region.

Bubble Tea Market: Competitive Landscape

The key players in the global bubble tea market are:

• Bobabox Limited

• Bubble Tea House Company
• Cuppotee
• Fokus Inc
• Gong Cha
• Sumo’s Sdn Bhd
• Troika JC
• Fokus Inc.
• Coco Fresh
• T Bun International
• Grand Chainly
• Share Tea
• Fanale Drinks
• Ten Ren’s Tea Time
• Kuaikeli Enterprise co.ltd.
• COCO International Co. Ltd.
• Kung Fu Tea
• Lollicup USA Inc.

Global bubble tea market segmentation follows

By Ingredient

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

By Flavor

• Original Flavor
• Coffee Flavor
• Fruit Flavor
• Chocolate Flavor
• Others

By Distribution Channels

• Supermarkets

• Hypermarkets
• Convenient Stores
• Specialty Stores
• Non-Store-Based

By Component

• Sweetener

• Liquid
• Flavor
• Creamer
• Tapioca Pearls
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa