The global bubble tea market, valued at approximately USD 2.46 billion in 2023, is projected to experience significant growth, reaching USD 2.63 billion in 2024 and expanding further to USD 4.78 billion by 2032. This growth translates to a compound annual growth rate (CAGR) of 7.74%, according to a recent report from Fortune Business Insights™.
Bubble tea, characterized by its unique combination of sweetened tea, premium milk, tapioca pearls, and various flavorings, has gained considerable traction in Western countries, including Canada and the United Kingdom. Originating from Taiwan, bubble tea has become a cultural phenomenon, highlighting the island’s innovative contributions to the global food service industry.
The report titled “Bubble Tea Market, 2024-2032” details several key factors driving this expansion. Leading companies profiled in the report include:
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 Holdings Corporation (Happy Lemon) (Taiwan)
O.I. The Co, LTD. (Taiwan)
As consumer health consciousness rises globally, the black tea segment of the bubble tea market is expected to witness substantial growth over the next several years. Promoted for its antioxidant, anti-aging, and anti-diabetic properties, black tea is gaining popularity among consumers seeking natural and organic food and beverage options. The green tea segment is also anticipated to capture a significant market share, following closely behind black tea.
The bubble tea market is segmented into various flavor categories, including coffee, fruit, chocolate, and original. Notably, fruit flavors dominated the market in 2019, appealing to consumers with options such as lychee, mango, passion fruit, and strawberry. This trend is projected to continue as tea-based fruity beverages become increasingly popular due to their nutritional benefits and strong consumer preferences. Meanwhile, the chocolate segment is expected to grow rapidly, fueled by rising demand across all age groups.
The report on the bubble tea market provides insights into:
Major growth drivers, challenges, and opportunities.
Detailed regional developments.
Profiles of leading industry players.
Key strategies employed by bubble tea market participants.
Recent developments, including product launches, partnerships, and mergers.
The rising popularity of bubble tea is driven by shifting consumer tastes, competitive pricing, brand influence, and improved accessibility. Tea producers are responding by developing premium products and continuously innovating traditional recipes, enhancing the appeal of bubble milk tea.
The potential for market expansion is significant, with a diverse range of options available, including fruit-flavored, green jasmine, and black tea-based milk teas. Noteworthy innovations, such as Bubluv Inc.’s introduction of new boba tea varieties made from tapioca starch and konjac, illustrate the industry’s commitment to diversification.
In 2022, the Asia Pacific region dominated the bubble tea market, valued at USD 0.96 billion. Taiwan and Vietnam are pivotal players, driving high sales figures through the proliferation of dedicated bubble tea cafés and restaurants. For instance, Chen Shucheng’s launch of Meme Xpress in Singapore in September 2020 reflects the ongoing trend of market expansion.
North America ranks as the second-largest bubble tea market, with continued growth expected as tea-based beverages gain popularity. Similarly, the European market is witnessing an increase in pearl milk tea consumption.
Major players in the bubble tea market, including Lollicup U.S.A. Inc., Gong Cha, and Chatime, are investing heavily in research and development to introduce innovative tea varieties that cater to evolving consumer preferences. Other notable competitors, such as Boba Box Limited and Sumos Sdn Bhd, are also franchising their operations, capitalizing on strong customer interest and positive market responses.
As the bubble tea market continues to expand, companies are focusing on enhancing their product offerings to maintain competitive advantage in a rapidly growing sector.
Related Topics:
