Bubble Tea Market - Forecast(2023 - 2028)

Bubble Tea Market

Bubble Tea Market size was estimated at $2.1 billion in 2020, projected to increase at a CAGR of 6.8% during the forecast period 2021-2026. Apart from the variety of flavors available, one of the primary elements fueling the expansion of bubble tea Industry is the health benefits. Bubble Tea is a famous non-alcoholic beverage drink that first became popular in Taiwan in the 1980s. Bubble tea is also known as pearl milk tea or bubble milk tea. The main ingredient in bubble tea is tea, which is combined with flavorful chewy tapioca balls manufactured of tapioca starch. Bubble tea is extremely popular in Asian countries like China, Thailand, and Taiwan, and it is only now beginning to spread to other parts of the world. There is an increasing number of people who are concerned about their health and fitness, as well as a growing number of people who drink tea.

Bubble Tea Market Report Coverage

The report: “Bubble Tea Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Bubble Tea Market.

By Tea Type: Oolong Tea, Green Tea, Black Tea, White Tea, Black Tea, and Others
By Flavor: Original, Coffee, Fruit, and Others
By Boba Type: Clear Boba, Black Boba, Flavored Tapioca Boba, and Others
By End User: Kids, Teenagers, Adults
By Geography: North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina and Rest of South America), and Rest of the World (Middle East and Africa)

Key Takeaways

• The global bubble tea industry is being driven by a growing fitness and health concerned population, as well as an increase in the number of tea drinkers.
• Furthermore, low prices and a steady shift in tea drinkers’ preferences from conventional to flavored teas are propelling the bubble tea business.
• To increase their market share, major corporations around the world provide a variety of boba tastes. Boba Box Limited, a UK-based boba maker, sells mini boba in a variety of flavors, including blueberry, cherry, green apple, lemon, passion fruit, peach, raspberry, and more.
• However, the availability of substitute drinks like coffee, as well as the negative consequences of excessive tea intake and the addition of artificial colors to bubble tea, are some of the issues that are limiting market expansion.

Bubble Tea Market: Market Share (%) by Region, 2020

Bubble Tea Market Segment Analysis – By Product Type

Based on Product Type, Bubble Tea Market is segmented into Oolong Tea, Green Tea, Black Tea, White Tea, Black Tea, and Others. Black Tea segment is accounted for the largest revenue market share in 2020 owing to its rich aroma, and the true natural flavor of black tea is credited with its expansion. Furthermore, black tea aids in the reduction of blood sugar and bad cholesterol, as well as the improvement of gut health. It’s also a fantastic source of antioxidants. According to studies conducted by the Tea Association of the United States, over 150 million individuals in the United States drink tea on any given day, with black tea accounting for 82% of all tea drank. The green tea product segment, on the other hand, is expected to grow at the fastest rate of 7.2% from 2021 to 2026. The rise in popularity is owing to the increased understanding of the health advantages of drinking green tea. Tea is a versatile beverage that is easily the most widely drank beverage on the planet. Tea makers have been experimenting with its zesty and appealing aroma for years, treating consumers to various flavors, including oolong tea and green tea.

Bubble Tea Market Segment Analysis – By Flavor

Based on Flavor, Bubble Tea Market is segmented into Coffee, Fruit, and Others. The fruit flavor segment held the largest market share in 2020 and is likely to continue throughout the forecast period. The availability of varied fruit flavors such as strawberry, passion fruit, mango, pineapple, cantaloupe, watermelon, avocado, coconut, grape, lychee, peach, honeydew, kiwi, and banana is fueling the segment's expansion. Furthermore, the market players offering various flavors to attract a wide range of customers are driving the segment growth. For instance, Fokus Inc., a Taiwanese bubble tea supplier, sells bursting boba in various flavors, including grape, mango, plum, peach, strawberry, passion fruit, cranberry and lychee. Owing to the expanding demand for coffee as a healthy energy drink, coffee is expected to be the fastest-growing taste segment, with a CAGR of 7.4% from 2021 to 2026. European and Scandinavian countries, in particular, dominate coffee consumption.

Bubble Tea Market Segment Analysis – By Geography

Based on Geography, in 2020, the Asia-Pacific Bubble Tea Market accounted for 38% of total sales. Asia-Pacific is expected to lead the bubble tea market owing to its high production and consumption of various types of tea, including oolong tea, black tea, and green tea. Thailand, in addition to Taiwan, has emerged as a prospective market for bubble tea consumption. Thailand consumed an average of 6 cups of bubble tea per person per month in 2019, according to the ASEAN Post. During the projection period, the Bubble Tea Market in North America is predicted to grow at the fastest rate. In Taiwan, zhenzhu naicha boba tea, bubble tea, and pearl milk tea are fundamentally the same drink. The names vary by area, as well as a personal choice. In the United States, the East Coast prefers bubble tea to the West Coast’s boba. Boba pearls are created from tapioca starch, which comes from the cassava root, so vegetarians may rest comfortably knowing that no gelatin is used to produce these delightful little balls. According to studies conducted by the Tea Association of the United States, over 150 million individuals in the United States drink tea on any given day, with black tea accounting for 82 percent of all tea drank. According to data published by the United States Food and Agriculture Organization (FAO), around 3.8 billion gallons of tea were consumed in the United States in 2016, with black tea accounting for 80% of consumption, followed by green tea (16%), and oolong tea, white, and dark tea accounting for the remainder (4%). According to the United Nations’ Food and Agricultural Organization, the United States is the world’s fourth-largest importer of tea, drinking tea in about 80% of households.

Bubble Tea Market Drivers

Availability of Wide Range of Flavors is Boosting the Market Growth:

Bubble tea is also known as bubble milk tea, boba juice, boba tea, or pearl tea by people all over the world. Bubble tea, often known as "pearl milk tea," is brewed with conventional tea ingredients and chewy tapioca balls. Depending on the flavor of the tapioca starch balls, bubble tea comes in a variety of flavors, including peach, plum, mango, passion fruit, coffee, chocolate, and strawberry. Furthermore, leading companies in the bubble tea market are focused on new product introductions to increase their market share. For example, in 2017, BossenStore.com introduced Bursting Boba Pure25, a vegetarian, cholesterol-free, fat-free, low-calorie, and sodium-free bursting boba with flavors such as strawberry, mango, lychee, kiwi, blueberry, and passion fruit. As a result, increased product releases are likely to drive market growth.

Rising Awareness on Health Benefits of Consuming Oolong Tea is Boosting the Market Growth:

Obesity and diabetes has driven consumers to seek out sugar replacements such as stevia, agave, and honey, which are connected to a high sugar intake. These are the sweeteners used in boba tea to replace or lessen the amount of sugar consumed. Natural sweeteners are preferred by health-conscious people and diabetics over sugar because of their antioxidant, anti-inflammatory, and anti-carcinogenic properties. As a result, numerous tea makers are shifting their focus to healthier teas with reduced fat and calorie content. Many are even using taglines to promote their products, emphasizing their bubble tea’s antioxidant and anti-inflammatory effects. It is frequently sold at a low price to introduce customers to several flavors and encourage them to establish a bubble tea habit over time. Many people add fruits and jellies to their bubble tea to offer it to new markets.

Bubble Tea Market Challenges

Health Hazards owing to intake of high sugar-containing Drinks is Dampening the market growth:

Bubble tea is growing in popularity as a result of its diverse flavors, appealing colors, and boba types. On the other hand, bubble tea is heavy in sugar and includes a lot of trans fats. The chewy tapioca balls don’t have a lot of calories in them. According to studies, a 1.1 ounce of uncooked pearls contains 68 calories, but when tapioca balls are soaked in sugar mixture, condensed milk, their calorie count rises, potentially slowing the market’s growth. The average amount of sugar in one serving of bubble tea is 34 grams, almost 68% of the World Health Organization’s recommended sugar intake. The trans-fats in bubble tea are utilized to improve the drink’s taste and texture. Trans-fats are harmful to one’s health since they raise bad cholesterol (LDL), lower good cholesterol (HDL), impair cognition and reproductive function, and increase the risk of heart disease, diabetes, and stroke, among other things. As a result, these health risks are projected to stifle the bubble tea market’s expansion during the forecast period.

Bubble Tea Market Segment Landscape:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Bubble Tea Market. Bubble Tea Market top 10 companies are:

• Teapioca Lounge
• OCOCO International Co., Ltd.,
• Kung Fu Tea
• Lollicup Coffee & Tea
• Vivi Bubble Tea
• Chatime, Boba Guys
• Chill Bubble Tea
• Boba Tea Company
• Real Fruit Bubble Tea
• Boise Boba

Acquisitions/Product Launches:

• In April 2020, Bubble Tea Supply Inc announced the launch of bubble tea in its Bubble Tea Club, which includes 14 distinct topping tastes and classic milk, mango, green apple, lychee, and Thai tea Fruity flavor with honeydew.
• In June 2019, Secret Recipe announced the release of a new line of bubble tea in various flavors. Boba milk tea, Boba trademark fruit tea, Boba brown sugar with milk, Boba midnight blue, and other varieties are available.

Related Reports:

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