According to a new report published by Allied Market Research, titled, “Bubble Tea Market," The Bubble Tea Market Size was valued at $3 billion in 2022, and is estimated to reach $5.4 billion by 2032, growing at a CAGR of 6.3% from 2023 to 2032.
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 during the forecast period. This is attributed to the growth in 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 helps to drive the growth of the market. However, excess sugar content in these drinks leads to health issues and trend of coffee consumption is expected to restrict the market growth. In addition, due to the presence of artificial preservatives in bubble tea, consumers have changed 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 market expansion.
The bubble tea market is segmented on the basis of base ingredient, flavor, component, and region. On the basis of 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. On the basis of component, it is classified into flavor, creamer, sweetener, liquid, tapioca pearls, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Consumers all around the world have become very conscious about their health and body image. They look for viable alternatives to unhealthy food and beverages. Bubble tea is a healthy beverage with a number of benefits such as it helps to protect the body against free radicals that cause cellular damage. Moreover, it is available in different taste and is quite a novel drink outside of southeast Asian countries which boost its attractiveness as a product.
According to the bubble tea market analysis, in 2022, the black tea segment generated the highest revenue and is expected to remain dominant during the forecast period. This is attributed to rise in the popularity of bubble tea with black tea as the base ingredient across the globe. However, the green tea segment is expected to grow at the highest CAGR during the Bubble Tea Market Forecast period owing to growth in number of health-conscious consumers across the globe.
On the basis of flavor, the fruit flavor segment was the most prominent segment accounting for the highest Bubble Tea Market Share. This is 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 Bubble Tea Market Trends 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 during the forecast period, owing to availability of organic sweeteners such as honey-based sweeteners for bubble teas.
On the basis of region, North America accounted for the maximum share in the global market in 2022 and is expected to remain dominant during the forecast period. This is attributed to higher expenditure of 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 and is thus likely to bring myraid Bubble Tea Market Opportunities, owing to changes in the buying behavior of people and rise in awareness of bubble tea in this region.
The key players operating in the Bubble Tea Industryinclude Lollicup USA, Inc., CuppoTee Company, Bubble Tea House Company, Ten Ren's Tea Time, Boba Box Limited, Sumos Sdn Bhd, Gong Cha USA, Boba Tea Company, Troika JC. (Qbubble), and Fokus Inc.
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.
Key Market Findings
- Based on flavor, fruit flavor segment dominated the global market in the year 2022 and is likely to remain dominant during the forecast period.
- Based on base ingredient, black tea segment dominated the global market in the year 2022 and is likely to remain dominant during the forecast period.
- Based on component, liquid segment dominated the global market in the year 2022 and is likely to remain dominant during the forecast period.
- Based on region, Asia-Pacific region dominated the global market in the year 2022 and is likely to remain dominant during the forecast period.