The Global Bubble Tea Market Size Was Valued At USD 2.17 Billion In 2021. The Market Is Projected To Grow From USD 2.29 Billion In 2022 To USD 3.78 Billion By 2030, Exhibiting A CAGR Of 7.40% During The Forecast Period.

Bubble Tea Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. As a result, demand for bubble tea is lower than expected in all regions compared to levels before the pandemic. Based on our research, the world market grew by 2.76% less in 2020 than it did in 2019.

The popularity of Bubble Tea kept growing in the area where it started. It then spread to other western countries, like Canada and the U.K., and is now considered a mainstay because of its unique recipe. This popular sweetened tea is made with high-quality milk, tapioca pearls, fruit powder, creamer, and sweeteners. Bubble milk tea has become a cultural icon around the world. It represents Taiwan's efforts to promote its place in the food service industry by coming up with new food ideas. Nextrends Asia 2021 showed, for example, that Taiwan's exports of the raw materials, packaging, and machinery used to make pearl milk tea (among other things) were up 330% from 2018 to 2021. Also, the rise of gastronomic tourism, the rise of health-conscious people, and the influence of social media have all helped the country's potential to grow.

Market Dynamics:

Latest Trends:

A big trend is that people are becoming more interested in versatile teas with new, strong flavours.

People all over the world are talking about Bubble Tea because of its growing popularity and uniqueness. Consumers are becoming more interested in new drinks with bold flavours and are willing to try out different flavours, which is keeping their attention and helping the market grow. Bubble milk tea has become one of Gen Z's trademarks because more young people drink it than any other age group. For example, a study by the "Business Times Newspaper" found that in August 2021, Southeast Asia spent around USD 3.7 billion on introducing "milk tea" and other similar new drinks to meet the growing demand from young people. Also, a study by the finance startup Momentum Works and the payment startup Qlub found that Indonesia's bubble milk tea market was the best in all of Southeast Asia. Aside from this, the fact that bubble tea is low in fat and calories and has many health benefits, such as a high antioxidant value, also makes it more popular in both the domestic and international markets.              

Driving Factors:

Having a wide range of products to attract the younger generation is important for growth.

In this day and age, more and more people are choosing products based on things like taste, price, brand, and how easy they are to get to. All of these things make it important for manufacturers to make high-quality teas that meet consumer needs. The rise in popularity of bubble milk tea is mostly due to how good it tastes, how cheap it is, and how often the basic tea recipe is being changed. Bubble milk tea has a big market potential because it comes in many different types and flavours, like fruit-flavored, green jasmine, and black tea-based milk teas. For example, in April 2022, a U.S. company called Bubluv Inc. started selling bubble tea made with tapioca starch and konjac in three flavours: black milk tea with tapioca pearls, matcha soy latte with tapioca pearls, and oolong guava with tapioca pearls.

Also, the companies are paying attention to the fact that lactose intolerance is becoming more common and are working to give people lactose-free bubble milk tea options. For example, in April 2020, Chatime, a company that makes bubble tea, started selling oat milk-based teas like Chatime Pearl Milk Tea and Grass Jelly Roasted Milk Tea for people who can't have lactose. People have a lot of choices when it comes to milk tea because there are different kinds. These new product lines are also a marketing strategy to attract a large number of customers all over the world. Also, the growth has been helped by the fact that millennials are now more interested in these kinds of products because they want high-quality teas with unique flavours.

Consumers' move towards healthier options will help growth.

People with busy lives are more likely to have health problems like obesity and diabetes. This has led them to switch to healthier drinks like ginger tea and boba teas, which are easy to customise. Milk tea is becoming more popular because it is easy to make it your own with different tea bases and toppings like jelly, fruit bits, syrups, and tapioca balls. Studies have shown that milk tea made with green tea can help lower blood pressure and the risk of getting cancer. Due to the yoghurt, cream, fruit bits, and other ingredients in bubble milk tea, it also helps keep the right balance of vitamins and minerals in the body. A study published in the National Library of Medicine in 2022 says that chewing tapioca pearls can raise the levels of C-protein (CRP) and calcium (Ca) in the saliva. People in the Middle East and Africa are also becoming more and more interested in milk tea, just like people in the U.S. and Asia. For example, in September 2021, many new tea shops serving bubble tea opened in Dubai. Brands like Koi The Co, Moge Tee, and M.A.D. Modern Asian Desserts grew their business in the country by opening more boba milk tea shops.

Restraining Factors:

Growth Will Be Slowed by the Availability of Other Caffeinated Drinks

Even though there is a growing demand for these new types of tea drinks, market growth is threatened by the wide availability of other caffeinated and traditional drinks, like coffee and chocolate, and by the fact that Western countries drink a lot of coffee. Coffee and tea are the most popular and socially accepted nootropic drinks around the world. Many people depend on these caffeinated drinks to get them going in the morning. The growth of the global market is also slowed by the fact that there are good alternatives, such as unsweetened tea, coconut water, fruit-infused teas, and others, that offer similar benefits. Also, they are very dependent on Asian countries to get raw materials like tapioca balls from Taiwan, which slows down the production process and has an effect on how they run their business as a whole. All of these problems make it harder for the global market to grow.

Segmentation Analysis:

By Type Analysis:

Black tea's health benefits are causing more people to buy it, which is good for the market.

During the forecast period, the black tea segment is expected to grow at a high CAGR. This is because health-conscious consumers in every region like black tea more and more. People are encouraged to drink black tea because it has powerful antioxidant, anti-aging, and anti-diabetic properties. Natural and organic food and drinks are becoming more popular with consumers. This is one of the main things that will help this market segment grow.

The black tea segment is expected to have the most market share, followed by the green tea segment. NCBI says that healthy, natural ingredients like green tea can help prevent weight gain and cause weight loss when they are eaten regularly. Green tea has been shown to give people more energy over time and to help keep their weight in check.

By Flavor Analysis:

Fruit Flavor Segment is Dominating High customer preference backs it up

By flavour, the market is divided into coffee, fruit, chocolate, original, and others. Fruit flavour is the most popular, and this part of the market dominated the market in 2019. It comes in flavours like lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, lemon, and more. This segment is expected to grow a lot over the next few years because it has a higher nutritional value than other flavours, consumers prefer it, and tea-based fruity drinks are very popular.

In the coming years, the chocolate segment is expected to grow the fastest because people of all ages want more drinks with chocolate in them. Chocolate-flavored milk tea is very popular. To make it taste better, chocolate powder is mixed with milk. Aside from this, coffee flavour is also expected to have a large market share over the next few years because coffee is becoming more popular as a healthy drink.

Regional Insights:

In 2021, the Asia-Pacific market had the biggest share, worth USD 0.90 billion. The most sales are likely to happen in places like Vietnam and Taiwan. Manufacturers or business owners in the boba tea industry are opening their own restaurants or cafes to attract customers and strengthen their presence in the market. For example, Chen Shucheng opened Meme Xpress, a bubble milk tea franchise, in Singapore in September 2020.

After Asia Pacific, North America has the second-largest share of the bubble tea market, which is likely to stay the same during the forecast period. Countries in North America are slowly drinking more of this tea because tea-based drinks are becoming more popular. Also, the number of boba stores has grown in the U.S. and Canada because people are now more interested in no-alcohol and low-alcohol drinks. This has helped the market grow even more.

Around the same time that the pearl milk tea market grew in Asia, it also grew in Europe. In 2009, brands like CHATIME and Bubbolitas opened their first factories to make boba drinks. Since then, the market has been on an upward trend. For example, a crowdfunding campaign helped the first Italian bubble tea chain, Frankly, grow by about 148% in June 2022 compared to the previous year. The campaign will go on longer because it made so much money. This makes the company want to expand its product line and brand position. These kinds of projects help the companies' huge growth potential even more.

Also, Europe and other Scandinavian countries have strong tea and coffee cultures and are eager to try new fruity, herbal, and pearl milk teas. Also, Europe doesn't make a lot of tea on its own. Instead, it gets most of its tea from other places. This slows the growth of the market.

In the coming years, it is expected that the number of sales in South America will grow. As a result of globalisation, new trends have started to hit the food service market, making young people more likely to try new drinks. But in South American countries like Argentina and Brazil, people don't drink tea as much as they drink coffee. Still, companies are trying to bring new drinks like bubble milk tea to the market.

In the Middle East and Africa, where pearl milk tea is often drunk as a social drink or as a sign of hospitality, growth is slower. The region is seeing a trend of eating food from different cultures, and the growing interest in health and wellness is also likely to help the growth. Using new techniques like molecular nitrogenation adds a new twist to the traditional recipe. This gives the market even more ways to grow and help it grow faster.

Scope Analysis

Recent Development:

• April 2022: BUBLUV, a New York-based startup, introduced better boba alternatives nationwide. The drink is essentially keto-friendly and gluten-free and comes in three flavors: Black Milk Tea with Tapioca Pearls, Matcha Soy Latte with Tapioca Pearls, and Passionfruit Oolong Guava with Tapioca Pearls.
• May 2022: Barroco by Café De Bangkok offers boba tea in approximately 21 flavors, including cotton candy and Japanese sweet potato, to meet consumer demand. The café also serves exciting Thai bubble tea served with cream cheese.
• March 2022: The pearl milk tea trend is gaining traction in the global market, with several cities in India, including Thiruvananthapuram, starting to feature this Taiwanese drink on their menus.
• November 2021: Jollibee Foods Corporation (JFC) announced it is acquiring a majority stake in Milkshop International, one of Taiwan's operators of boba tea cafes. JFC acquired approximately 51% of the organization for US$12.8 million.
• October 2021: Del Monte announces the launch of "Joyba Bubble Tea" available only in select stores such as Costco, Albertson's, Circle K, Safeway and Target Stores.

Market Segmentation

By Type:

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

By Flavor:

• Fruit
• Original
• Chocolate
• Coffee
• Others

By Companies:

• 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)
• Others