According to a new report published by Allied Market Research, titled, “Bubble Tea Market by Base Ingredient, Flavor,and Component: Opportunity Analysis and Industry Forecast, 2019–2027,”the bubble tea market size was valued at $2.4 billion in 2019 and is estimated to reach $4.3 billion by 2027, registering a CAGR of 7.80% from 2020 to 2027. In 2019, the black tea segment accounted for more than half of the share in the total bubble tea market and is expected to grow at a CAGR of 7.50% throughout the forecast period.North America is one of the prominent regionsin the market that accounted for asizeable share of the total market in 2019.
Bubble tea, popularly known as boba tea, is a Taiwanese drink invented in Tainan and Taichung in the 1980s. It is prepared with tea or milk as the base component. This tea is glazed with boba, which are soft, chewy, and gummy tapioca pearls extracted from cassava root. Other ingredients, such as jelly and fruit balls, are used to enhance the texture of the tea. Bubble tea is served in a hot or cold form, according to the preference of consumers and a fat straw is used through which the pearls can be easily eaten by consumers.The adoption of bubble tea has been quite high in developed regions such as the U.S., Canada, and Germany, while emerging countries such as China, Brazil, and India are catching up quickly.
The global bubble tea market has witnessed significant growth over the years and is expected to grow at a steady pace and helps ti grow the bubble tea market size during the forecast period. This can be attributed to the growing health awareness and rise in adoption of bubble tea, owing to its health benefits and popularity among health-conscious consumers and young generation. Availability of bubble tea at lower prices and introduction of additional healthy ingredients in it by different market players drive the global bubble tea market growth. In addition, rise in number of vegan people also helps to drive the growth of the market. However, excess sugar content in these drinks lead to health issues and trend of coffee consumption are expected to restrict the market growth. In addition, due to the presence of artificial preservatives in the bubble tea, consumers are changing their preference toward organic beverages, which hampers the growth of the global bubble tea market. On the contrary, introduction of various new flavors and blends and high demand among young population for a variety of teas are expected to provide lucrative opportunities for the market expansion.
The report segments the global bubble tea market based on base ingredient, flavors, component, and region. By base ingredient, it is divided into black tea, green tea, oolong tea, and white tea. On the basis of flavor, it is categorized into original flavor, coffee flavor, fruit flavor, chocolate flavor, and others. By component, it is classified into flavor, creamer, sweetener, liquid, tapioca pearls, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
According to the bubble teamarket analysis, in 2019,theblack tea segment generated the highest revenue and is expected to remain dominant throughout the forecast period. This can be attributed to rise in the popularity of bubble tea with black tea as thebase ingredient across the globe. However, the green tea segment is expected to grow at the highest CAGR duringthe forecast period. This is due to growing number of health-conscious consumers worldwide.
According to the global bubble tea market trends, the fruit flavor segment was the most prominent segment accounting for the highest share in the bubble tea market. This can be attributed to change in preference of consumers toward healthy beverages and better taste. However, the chocolate flavor segment is expected to witness highest growth, owing to increase in its popularity of in all age groups.
On the basis of component, the liquid component segment generated maximum revenue in 2019 and is expected to continue this trend throughout the forecast period. This can be attributed to the availability of various options such as combination of various liquid flavors and syrups. However, the sweeteners segment is expected to grow at the highest CAGR duringthe forecast period, owing to availability of organic sweeteners such as honey-based sweeteners for bubble teas.
Region wise, North America accounted for the maximum share in the global market in 2019 and is expected to remain dominant during the forecast period.This can be attributed to higher expenditure of the consumers on healthy beverages. Moreover, aggressive marketing and celebrity brand endorsements for various flavors of bubble tea help push sales in this region.However, Europe is expected to grow with the highest CAGR throughout the forecast period, owing to changes in the buying behavior of people andrising awareness of bubble tea in this region.
Key Findings Of The Study
- The bubble tea market was valued at $2.4 billion in 2019 and is estimated to reach $4.3 billion by 2027,growing at a CAGR of 7.80% through the forecast period.
- Based on base ingredients, the green tea segment is anticipated to witness the fastest growth, registering a CAGR of 8.20% during the forecast period.
- In 2019, based on flavor, thefruit flavor segment held the highest share, accounting for more than half of the global market share.
- In 2019, China was the most prominent market in Asia-Pacific and is expected to grow at a significant CAGR throughout the forecast period.
- North America was the dominant region in 2019, accounting for more the one third of the global bubble tea market share.
The key players in the bubble tea industry, profiled in the report include Bobabox Limited, Bubble Tea House Company, Cuppotee, Fokus Inc., Gong Cha, Lollicup USA, Inc., Sumo's (M) Sdn Bhd, Ten Ren's Tea Time, The Bubble Tea Company, and Troika JC.
The other players operating in the global bubble tea market are Bubble Tea Supply Inc., ChaTime, CoCo Fresh, Quickly, Kung Fu Tea, Boba Loca, Happylemon, Share Tea, T Bun International, Fanale Drinks, Grand Chainly, and Huey-Yuhe Enterprise.