Bubble Tea Market

The Global Bubble Tea Market is valued at USD 2.15 Billion in 2022 and is projected to reach a value of USD 3.80 Billion by 2030 at a CAGR of 7.40% over the forecast period.

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Bubble Tea (pearl milk tea, bubble milk tea, boba tea, or boba juice) is a Taiwanese tea-based drink that has its roots in Taiwan. Most Bubble Teas are tea-based drinks that often contain fruit or milk, to which chewy tapioca balls (Bubble, pearls, or boba) and fruit jellies are added. Bubble Tea is available in the form of zero-fat and low-calorie-based content. The primary driver for the Bubble Tea market growth can be increased consumption of tea and coffee in the form of nootropic drinks among the student and working-class population.

Health experts recommend that moderate tea consumption improves brain functionality and concentration. Bubble Tea is also gaining popularity owing to its distinctive taste and the availability of various flavors, including fruits, coffee, chocolate, and a simple classic taste. Also, Bubble Tea is prepared using various supplements such as sugar, ice, and other flavored syrups. Ice-blended versions of Bubble Tea often produce a consistent slushy-type consistency. Consumers prefer such Bubble Tea based on their texture. Additionally, increasing consumption of hot beverages is expected to augment the growth of the global Bubble Tea market.

Bubble Tea are increasing consumption in mature economies such as Canada, the U.S., and Germany, while emerging economies such as China, Brazil, and India are experiencing an increased adoption rate. Additionally, increasing Bubble Tea sales have risen due to an ongoing trend of healthy consumption of healthy beverages, including green tea, oolong tea, and white tea. These factors are expected to widen the global Bubble Tea market growth. Additionally, manufacturers and suppliers are marketing their products aggressively, using celebrity endorsements and a huge social media presence. The introduction of new flavors and rising demand among consumers and the young population for a wide range of Bubble Tea are expected to provide a lucrative opportunity for the global Bubble Tea market to flourish.

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Bubble Tea provides an exceptional health boost due to certain antioxidant agents. These can help in slowing cellular damage to the human body. Bubble Tea can be consumed in larger quantities due to its anti-inflammatory properties. The lactose-intolerant population has been given the option to consume black, green jasmine, and green tea. The increasing propensity of obesity and diabetes-related disorders has increased due to increased sugar intake. Consumers are shifting towards sugar alternatives such as stevia, honey, and agave to curb sugar intake and enjoy beverages. This wider availability and appeal to a wider range of consumers is expected to propel the growth of the global Bubble Tea market during the forecast period.

Top Market Trends

1. Wider Availability of Products to Propel Market Growth: Bubble Tea is available in fruit flavored, green jasmine, and black tea. Additionally, they can be found in sweetened and unsweetened fruit drinks. This wider availability of flavors will fulfill the demand for a wider consumer base, increasing Bubble Tea market viability.

2. Increasing Healthier Consumption of Products: Increasing number of people diagnosed with diabetes, obesity, and other cardiovascular-related disorders is on the rise. Bubble Tea is often prepared using sugar alternatives, such as honey, agave, and stevia.

3. Rising Awareness Regarding Health Benefits Associated with Bubble Tea: Bubble Tea contains many antioxidants and anti-inflammatory properties. Studies have also indicated that Bubble Tea consumption can be considered healthy as it contains calcium and can lead to stronger bone formation.

4. Increasing Quick Service and Fast-Food Restaurants: Bubble Tea is primarily sold directly to consumers at casual dining restaurants as they provide a refreshing taste before or during the main course. Additionally, the increasing inclination of consumers towards nootropic beverages will push the Bubble Tea market growth.

5. Aggressive Marketing & Social Media Presence: Manufacturers are using social media to market products directly to consumers effectively. Additionally, leaders in the Bubble Tea market often rely on celebrity endorsements to provide their products to a wider consumer base.

6. Bubble Tea Franchise Being Held by Younger Entrepreneurs: Studies have indicated that many Bubble Tea franchises are owned and operated by young, well-educated, and social media-savvy entrepreneurs. These franchises are looking for young business prospects and are increasing their consumer base across their demographics.

7. Increased Product Attraction in the Millennial Population: Bubble Tea can be served hot or coldly. A wide variety of flavors and textures is expected to attract a wider aspect of the millennial population towards extending an attractive Bubble Tea market growth.

8. Availability of Flavors to Propel Market Growth: Bubble Tea is available in a wide range of flavors, such as banana, jackfruit, lemon, watermelon, pineapple, and kiwi, among others. This will prompt a wider consumer base for the Bubble Tea market during the forecast period.

9. Online Retailing of Product Distribution to Increase Market Demand: Online retailing of Bubble Tea is expected to widen the consumer base due to the inclining preference for distribution owing to the convenience it offers

Market Segmentation

The global Bubble Tea market can be categorized on the following: Base Ingredients, Flavors, Components, and Region. Based on Base Ingredients, the market can be categorized into Black Tea, Green Tea, Oolong Tea, and White Tea. By Flavor, the market can be segmented across Original Flavor, Coffee Flavor, Fruit Flavor, Chocolate Flavor, and Other Flavors. In terms of Components, the market can be fragmented across Flavors, Creamer, Sweeteners, Liquids, Tapioca Pearls, and Other Components. Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Base Ingredients

Black Tea to Witness Largest Market Share Owing to an Authentic Natural Flavor

The black tea segment is expected to occupy the largest market share, and this trend is expected to extend its dominance during the forecast period. Black Bubble Tea has an authentic natural flavor. Studies have further indicated that consumers prefer this drink as increased consumption has been found to reduce blood sugar levels and bad cholesterol. Additionally, it also improves gut health as it contains a good number of antioxidants. The green tea segment will grow with the fastest growing CAGR during the forecast period owing to rising awareness regarding health benefits. Green tea also helps reduce weight gain when consumed regularly.

Based on Flavors

Fruit Flavor to Dominate Market Owing to Increasing Consumer Preference Towards Healthy Beverages

The fruit flavor will reign dominance during the forecast period in revenue. Recent studies have indicated that consumers prefer healthy beverages that taste better. Fruit-flavored Bubble Tea contains a natural and pulpy taste. Additionally, fruit flavors include honeydew, peach, mango, lychee, avocado, plum, strawberry, banana, jackfruit, lemon, watermelon, pineapple, kiwi, and others are available for consumption. This gives consumers many products to choose from as per their choice. The chocolate flavor Bubble Tea will grow with the fastest growing CAGR during the forecast period owing to increased stimulating of brain functioning and relieving physical stress.

Based on Components

Liquid Segment to Occupy Largest Market Share while Sweetener to Grow at the Fastest Rate

The liquid segment is expected to occupy the largest market share as combining Bubble Tea with liquid flavors such as green tea, black tea, and oolong tea will drive incremental market growth. Various fruit juices and syrups are combined to create a tangible taste for the Bubble Tea. Such aspects are expected to boost the demand for the liquid sub-segment during the forecast period. Sweeteners are expected to grow with the fastest-growing CAGR as they provide a sweet and tangy flavor. These sweetening flavors can be used in the form of honey and stevia, reducing sugar consumption among consumers.

Based on Region

Asia Pacific to Navigate Largest Share in Terms of Revenue Owing to a Higher Prevalence of Tea

Asia Pacific is expected to register a huge sales trajectory during the forecast period as the region is home to many larger tea producers. Increasing growth for the Bubble Tea market can be further attributed to a higher prevalence of tea cultures in countries such as China, South Korea, India, Japan, and New Zealand, among others. Rising health consciousness among the general population and increasing availability of a wide range of Bubble Teas in the region will contribute to the budding market. Studies have indicated that the region's consumption of white and green tea has increased due to numerous health benefits and providing an excellent energy source.

North America will grow with the fastest growing CAGR as increased consumption of Bubble Tea is expected owing to rising availability in various flavors, including coffee, fruit, and chocolate. The rising popularity of tea-based fruity flavors and declining demand for carbonated drinks will propel market growth.

Competitive Landscape

The leaders in the Bubble Tea market are constantly improving their product portfolio by capitalizing on the functionality of Bubble Tea ingredients. Consumers are products that can provide an excellent taste in the form of healthier outcomes. Many startups are emerging in the marketplace by continuously appealing to a wider range of consumers. Collaborations and increased investments in their research and development departments have led to a widened consumer base for their products.

The key players in the global Bubble Tea market are Bobabox Limited (UK), Bubble Tea House Company (US), Cuppotee (Taiwan), Fokus Inc. (Taiwan), Gong Cha (UK), Lollicup USA Inc. (US), Sumo's (M) Sdn Bhd (Malaysia), Ten Ren's Tea Time (US), The Bubble Tea Company (US), Troika JC (US) to name a few.

Recent Market Developments

· August 2019: TA Associates, a private equity firm, announced that they invested in Gong Cha Group (a Taiwanese bubble & milk tea company). This investment was made considering the higher-growth opportunity business for Bubble Tea products.

· June 2019: Secret Recipe announced that they would introduce a series of boba tea flavors such as boba caramel milk tea, boba brown sugar with milk, boba brown sugar milk tea, boba kopi-C, boba midnight blue, and boba cham.

Segmentation of the Global Bubble Tea Market