Global Bubble Tea Market Extends at a Healthy CAGR of 8% by 2030

Introduction

Bubble tea, popularly known as boba tea, is a Taiwanese drink that originated in Tainan and Taichung in the 1980s. It is created with tea or milk as the foundation component. This tea is coated with boba, which are soft, chewy, and gummy tapioca pearls made from cassava root. Other additions, like jelly and fruit balls, are utilized to enhance the texture of the tea. Bubble tea is provided in a hot or cold form, according to customers' preference, and a thick straw is utilized through which consumers may readily swallow the pearls.

The worldwide bubble tea market has witnessed substantial expansion over the years and is likely to grow steadily during the forecast period. This might be ascribed to the increased health consciousness and surge in the adoption of bubble tea, owing to its health benefits and appeal among health-conscious consumers and the young population. The availability of bubble tea at cheaper rates and the introduction of new healthy ingredients by different industry players promote the growth of the bubble tea market. In addition, the rise in the number of vegan people also contributes to driving the development of the market.

Market Dynamics

Health benefits associated with Bubble Tea to Drive the Global Bubble Tea Market

Tea is among the most consumed beverages worldwide. The numerous health benefits of bubble tea, which is rich in antioxidants such as polyphenols, flavonoids, and catechins, drive its popularity. By stabilizing the damaging free radicals found in the human body, they prevent large-scale cellular damage. In addition to vitamins (C, K, B12, B6, and E) and minerals (trace amounts of potassium, manganese, magnesium, and calcium), this tea contains amino acids (L-theanine). Moreover, according to research undertaken by various reputable organizations, tea has been shown to prevent different types of cancer, lower cholesterol, increase immunity, promote weight loss, and prevent neurological illnesses. Thus, these elements are predicted to stimulate market expansion.

Introduction of New Flavors to Provide Opportunities for the Global Bubble Tea Market

To increase their product offerings and market share, market participants in the bubble tea industry are introducing new varieties, including fruit taste, chocolate flavor, and other coffee beverage flavors. Attractive fruit flavors include plum, lychee, banana, green apple, kiwi, watermelon, and cantaloupe. Other flavorful ingredients include barley, caramel, lavender, and avocado. This variety of flavors allows consumers to select their preferred bubble tea, creating a significant prospect for future market expansion.

Regional Insights

Region-wise, the global bubble tea market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America was the highest revenue contributor and is estimated to grow at a CAGR of 7.6%. Tea is a beverage that is widely enjoyed throughout the world. Because of its range of tastes, bubble tea appeals to young consumers. Increasing numbers of shops and companies in the bubble tea sector contribute to the expansion of the market. In addition, new flavor innovations and the rising popularity of bubble tea across all age groups in North America are crucial for driving market growth in this region. In North America, the United States contributes the most to the expansion of the bubble tea market. Most of the U.S. population eats coffee and chocolate-flavored bubble tea, and the per capita consumption of tea has increased over the years due to people's growing demand for healthful beverages and increasingly hectic lifestyles. Furthermore, Canada and Mexico are dominated by consumers of green and black bubble tea due to the health benefits of these beverages.

The Asia Pacific stands second in the global bubble tea market. It is projected to reach an expected USD 1550  million by 2030, registering a CAGR of 8.4%  during the forecast period. Due to increased consumption, the demand for bubble tea in Asia-Pacific has expanded dramatically. China, Japan, India, South Korea, Taiwan, and Australia are the most significant contributors to this region's economic growth. The bubble tea market is driven by the high penetration rate of packaged and unpackaged bubble tea in Asia-Pacific, the expansion of product offerings by established manufacturers, and the population increase. Key regional businesses are actively investing in advertising campaigns and marketing to boost their brand recognition and impact the market, which is anticipated to create expansion prospects.

Europe is the third largest region. European customers are pretty selective when selecting beverages. In addition, the number of health-conscious consumers in this region has increased over the previous two decades. European consumers favor luxury tea items and are constantly keen to try something new. Green and black bubble teas with fruit-flavored tapioca balls are among Europe's most popular bubble teas. Consumers favor high-priced specialty teas that provide a unique experience while sipping bubble tea and are aware of the various tea types. In addition, an increase in the health consciousness of the youthful population encourages the use of healthy bubble teas, which contributes to the expansion of the market. This gives bubble tea suppliers additional chances to offer distinctive tea blends, tastes, and ready-to-drink bubble teas.

Key Highlights

• The global bubble tea market was worth USD 2800 million in 2021 and is estimated to reach an expected value of USD 5600 million by 2030, registering a CAGR of 8% during the forecast period (2022 -  2030).
• Based on base ingredients, the global bubble tea market is divided into black tea, oolong tea, green tea, and white tea. The black tea segment was the highest contributor to the market and is estimated to grow at a CAGR of 7.7% during the forecast period.
• based on flavor, the global bubble tea market is categorized into original flavor, coffee flavor, fruit flavor, chocolate flavor, and others. The fruit flavor segment was the highest contributor to the market and is estimated to grow at a CAGR of 8.2% during the forecast period.
• By component, the global bubble tea market is classified into flavor, creamer, sweetener, liquid, tapioca pearls, and others. The liquid segment was the highest contributor to the market and is estimated to grow at a CAGR of 8.5% during the forecast period.

Competitive Players

Recent Developments

Recent Developments

• April 2024 - Boba Bhai, a quick-service restaurant (QSR) brand that specializes in bubble tea and other culinary products, raised Rs 12.5 crore. Along with Arjun Vaidya, other well-known angel investors included in the round were DEVC, Warm-up Ventures, Varun Alagh, Mandeep Sodhi, Prabhraj (Simba Beer), FinFirst, Neha Patil, Abhinav Sinha from Oyo, 1947 Rise Fund by Shiva Singh Sangwan, Percheque, Varun Alagh, Mandeep Sodhi, and Asit Oberoi.
• April 2024 - At the Gloucester Premium Outlets, a brand-new Asian-inspired company was opened, i.e., Real Fruit Bubble Tea, one of the most beautiful Asian tea shops.

Segmentation

1. By Base Ingredient
   1. Black tea
   2. Green tea
   3. Oolong tea
   4. White tea
2. By Flavor
   1. Original flavor
   2. Coffee flavor
   3. Fruit flavor
   4. Chocolate flavor
   5. Others
3. By Component
1. Flavor
2. Creamer
3. Sweetener
4. Liquid
5. Tapioca pearls
4. By End Use
1. Generation Z 
2. Millennials
3. Generation X