Global Bubble Tea Market By Type (Green Tea, Black Tea, and Other), By Flavor (Original Flavor, Coffee Flavor and Other ), By Component, By Distribution Channel, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Global Bubble Tea market size is expected to be worth around USD 5.6 Bn by 2032 from USD 2.8 Bn in 2022, growing at a CAGR of 7.4%. during the forecast period from 2023 to 2032.

Bubble tea is a unique beverage that originated in Taichung, prepared by blending tea bases with milk, flavors, or sweeteners and then adding tapioca pearls. Bubble tea comes with zero fat and low-calorie contents, which boosts the demand for this beverage. Different ingredients are added to the bubble tea Market, making it available in a wide range of drinks.

The famous variety of bubble tea comes with bubble milk green tea with tapioca and bubble milk tea with tapioca balls. For giving different textures and flavors to the tea, different tapioca balls are used. Other flavors are Coffee Flavor, Fruit Flavor, Chocolate Flavor, and honeydew.

Type Analysis

Black tea dominated the market because of its health benefits.

Black tea Market dominated with the highest revenue share of 48% in 2022. The authentic natural flavor of black tea is increasing its growth. The segment growth is attributed due to health awareness and health benefits with its properties like strong antioxidant, antiaging, and anti-diabetic. Furthermore, the drink comes with zero fat and low-calorie content, which helps reduce bad cholesterol and blood sugar levels and improve gut health.

Followed by black tea, green tea held a significant market share in 2022, and this segment is expected to grow at the highest CAGR throughout the forecast period. The growth of the segment can be due to the rising awareness about the health benefits associated with the consumption of green tea. Healthy ingredients in green tea help prevent weight gain and also induce weight loss when consumed regularly.

Flavor Analysis

Fruit flavor dominated the market with high nutritional value

Based on flavor, the Bubble tea market is segmented into coffee, fruit, chocolate, original, and other flavors. The fruit flavor segment dominated the market with the largest revenue share of more than 39% in 2022 and is expected to uphold the top position over the forecast period. The high popularity of tea-based fruity beverages and their high nutritional value compared to other flavors dominated this segment. Flavor variants such as mango, lychee, peach, passion fruit, plum, strawberry, avocado, banana, lemon, grape, and kiwi are also in demand.

During the forecast period, chocolate-based drinks are expected to grow at the fastest rate because they are widely consumed by people of all ages. Due to the escalating demand for coffee as a healthy beverage, coffee flavor is also expected to hold a strong market share during the forecast period. In chocolate-flavored milk tea, chocolate powder is blended with milk to enhance its taste.

Component Analysis

Tapioca pearl dominated the market by providing the perfect texture.

Based on the components, the Bubble Tea market is segmented into creamer, sweetener, liquid, tapioca pearls, flavor, and other types. Tapioca pearl dominated the market due to its perfect texture. Having the perfect texture means not being too soft or too hard. The perfect chewiness is similar to that of a fresh gummy bear. Additionally, the drink should be tasty and smooth. It is important that cool beverages taste good and feel refreshing. It is important to serve warm beverages at the right temperature to keep one's body warm. There are a variety of flavors and textures available in bubble drinks.

Distribution Channel

Online Retailing Dominated the market by offering convenience to the consumer.

Based on the distribution channel, the Bubble Tea market is segmented into direct (B2B), direct (B2C), and Online Retail. The online retail segment dominated the market and is expected to grow at a CAGR of 12% during the forecast period. The online retail segment is growing due to consumer preference for the convenience it offers. Various bubble tea Market brands offer direct (B2B), and direct (B2C) product delivery that is arranged to be delivered at a specific time and pre-booked.

Key Market Segments

Type

• Green Tea
• Black Tea
• Oolong Tea
• White Tea

Flavor

• Original Flavor
• Coffee Flavor
• Fruit Flavor
• Chocolate Flavor
• Other Flavor

Component

• Creamer
• Sweetener
• Liquid
• Tapioca Pearls
• Flavor
• Other Types

Distribution Channel

• Direct (B2B)
• Direct (B2C)
• Online Retailing

Market Dynamics

Drivers

Increasing Adoption of Healthy Beverages is Driving the Market

Growing health awareness is inclining people towards healthy eating and drinking, adoption of healthy beverages such as black tea, green tea, white tea, and oolong tea among consumers is driving the market growth. The consumption of Bubble Tea market consumption helps to boost the energy and immune system, decline inflammation, and enhance cardiovascular health. The rise in the prevalence of diabetes, oral bacteria, and cardiovascular diseases is accelerating market growth.

Consumption of Tea

Tea has stimulating properties; hence it is consumed by the working-class population in large amounts to avoid sleep and increase concentration. The bubble Tea market comes with additional benefits, properties, and a variety of flavors than normal tea, so the preference for bubble tea is growing. Moreover, increased flavored bubble tea consumption among the young generation fuels the bubble tea market growth.

Restraints

High cost and coffee consumption trend

The trend of coffee consumption is expected to restrict the market growth. Bubble Tea market comes with lots of health benefits, but the excess sugar content in these drinks may not be preferable for diabetic patients. Also, the consumer preference towards organic beverages is supposed to hamper the market growth. The high cost of bubble tea components such as additives, preservatives, along sweeteners compared to normal tea is a challenge for market growth.

Opportunity

The Launch Of New Bubble Tea Flavors Anticipated To Create Enormous Growth Opportunities In Market

The emergence of new bubble tea flavors and the increasing preference of consumers for bubble tea create opportunities for market growth. The launch of new fruit flavors and blend versions is anticipated to create enormous growth opportunities in the market. Other flavors of bubble tea include ginger, almond, coffee, and others.

Moreover, different toppings such as ice cream, cookie crumbs, red bean, cheese cream, fresh fruit, and others can be added to the bubble tea. Various puddings such as caramel, barley, taro, mocha, rose, lavender, and others are available. All these factors are expected to create enormous growth opportunities in the upcoming years.

Trends

A positive outlook for the market is major growth in the global food and beverage industry. There is huge competition in restaurants and cafes. They are increasingly experimenting with food and beverages to provide their consumers with innovative variations of the beverage. An increase in the experiment of bubble tea with innovative flavor variations is on trend.

Other factors, such as consumers' rising expenditure capacities and the proliferation of social media, are predicted to drive market growth. Additionally, various product innovations, such as the launch of bubble teas in aesthetically appealing packaging and exotic flavors, are supporting the market growth.

Regional Analysis

In 2022, APAC dominated the market with the largest revenue share of 43% and is anticipated to grow at a CAGR of 7.5% during the forecast period. There has been a rise in the number of tea consumers in APAC due to the rising millennial population and the growing popularity of bubble tea. Growth in the region is attributed to the high prevalence of tea culture in countries like India, Japan, China, South Korea, and others. Rising consumer awareness, consumer spending, and disposable income are anticipated to increase the market growth in this region.

North America holds the second-largest bubble tea market share in 2022. The growing health awareness about healthy eating and drinking, the popularity of fruity beverages, and the decline in carbonated demand will likely drive the demand for the Bubble Tea market in North America during the forecast period.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Emerging key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Several bubble tea market companies are concentrating on expanding their existing operations and R&D facilities.

In addition, several key players are now focusing on different marketing strategies, such as spreading awareness about natural ingredients, which is boosting the target products' growth.

Furthermore, companies are focusing on enhancing their product portfolio and business capacity, increasing competitive rivalry. Listed below are some of the most prominent Bubble Tea industry players.

Market Key Players

• Lollicup USA, Inc
• Bubble Tea Supply, Inc.
• Boba Loca USA Inc.
• Cuppotee
• BUBLUV, Inc.,
• Fokus Inc.
• Kung Fu Tea
• Kuaikeli Enterprise Co., Ltd.
• Fanale Drinks
• Sumos Sdn Bhd
• Boba Guys
• Coco Fresh
• Other key Players

Recent Developments

• In January 2023, beverage company BobaBam announced the launch of Milk Tea and Taro, its two new flavors. The specialty of these flavors is that they are completely gluten-free, vegan, and nut-free; they are also non-GMO.
• In April 2022, New York-based company, BUBLUV, Inc., announced the launch of BUBLUV Bubble Tea, which is the first ready-to-drink beverage of this company. The super refreshing and light sweet taste was the specialty of this beverage. This Bubble Tea is glutin-free and keto-friendly

Report Scope