The global bubble tea market revenue was valued at USD 2.46 billion in 2023 and is forecasted to grow from USD 2.63 billion in 2024 to USD 4.78 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.74%.
Originally developed in Taiwan, bubble tea has gained widespread popularity in Western countries such as Canada and the U.K., becoming a favorite beverage among diverse audiences. This sweetened drink features a unique blend of high-quality milk, liquid sweeteners, tapioca pearls, creamer, fruit powders, and other ingredients. As a cultural emblem, bubble tea highlights Taiwan's culinary ingenuity and its expanding influence within the global food service sector.
According to Nextrends Asia 2021, Taiwan’s exports of pearl milk tea base ingredients—including raw materials, packaging, and machinery—have surged by an impressive 330% since 2018. The increasing popularity of bubble tea has been driven by factors such as the rise of gastronomic tourism, the growing health-conscious consumer base, and the impact of social media.
This data is sourced from the report titled “Bubble Tea Market, 2024-2032” by Fortune Business Insights™.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/bubble-tea-market-101564
List of the Companies Profiled in the Report:
- 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 (Cayman) Holdings Corporation (Happy Lemon) (Taiwan)
- O.I. The Co, LTD. (Taiwan)
Segments:
Black Tea Segment to Experience Significant Growth from 2023 to 2030
As global health awareness continues to rise, the black tea segment is expected to experience substantial growth during the forecast period. Known for its antioxidant, anti-aging, and anti-diabetic benefits, black tea is becoming increasingly popular among health-conscious consumers. The growing preference for natural and organic food and beverages is further fueling the expansion of this market segment. While green tea is anticipated to capture a significant share of the bubble tea market, black tea is closely following in popularity.
Fruit Flavors Gaining Momentum in the Coming Years
The bubble tea market is segmented into various flavor categories, including coffee, fruit, chocolate, original, and others. In 2019, the fruit flavor segment emerged as the dominant category, outpacing other flavors in popularity. This segment offers a wide variety of options, such as lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, and lemon. With its high nutritional value and the increasing demand for tea-based fruity beverages, the fruit flavor segment is poised for robust growth throughout the forecast period. Additionally, the chocolate flavor segment is expected to grow at the fastest rate, driven by the rising demand for chocolate-flavored beverages across all age groups.
Report Coverage
The report offers:
- Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
- Comprehensive insights into regional developments.
- List of major industry players.
- Key strategies adopted by the market players.
- Recent industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers and Restraints
Expanding Range of Boba Tea Offerings to Augment Market Share
Consumer preferences are influenced by several factors, including taste, price, brand, and accessibility. As a result, tea manufacturers need to focus on producing high-quality products that cater to these preferences. The growing popularity of bubble milk tea is largely due to its appealing flavor, ease of access, and the ongoing innovation in traditional tea recipes.
The wide variety of bubble milk tea options, such as fruit-flavored, green jasmine, and black tea blends, highlights the extensive market potential. For instance, in April 2022, U.S.-based startup Bubluv Inc. introduced three new boba tea flavors made with tapioca starch and konjac. Such innovations play a crucial role in driving the continued growth of the bubble tea market.
Regional Insights
Asia Pacific to Dominate As Consumers Explore New Beverage Options
In 2022, the Asia Pacific region dominated the bubble tea market, with a valuation of USD 0.96 billion. Vietnam and Taiwan are expected to be the key drivers of bubble tea sales in this region. To capture consumer attention and expand their market presence, manufacturers and business owners are increasingly opening their own cafes and restaurants. For instance, in September 2020, Chen Shucheng launched the Meme Xpress bubble milk tea franchise in Singapore.
The North American bubble tea market holds the second-largest share, following Asia Pacific, and is anticipated to maintain this position throughout the forecast period. The growing popularity of tea-based beverages is fueling a steady increase in bubble tea consumption across North America. Similarly, the European market has seen a rise in pearl milk tea consumption, mirroring trends observed in Asia Pacific countries.
Competitive Landscape
Key Players Bid to Launch Innovative Products to Keep Pace with Growing Consumer Popularity
To meet the increasing consumer demand, key players in the bubble tea industry are enhancing the functionality of ingredients in their beverages. Companies such as Lollicup U.S.A. Inc., Gong Cha, and Chatime are investing in research and development to introduce innovative tea varieties that cater to the evolving needs of the market. Other significant contributors, including Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company, are also playing a vital role in shaping the industry. These major competitors are expanding their franchise operations into new locations, driven by high customer demand and favorable market feedback.
Key Industry Development:
October 2021: Del Monte launched Joyba Bubble Tea in selected outlets, including Costco, Circle K, Albertson’s, Target Stores, and Safeway.
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