The global bubble tea market size was valued at 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). Taiwanese drink bubble tea, also called boba tea, was developed in Tainan and Taichung in the 1980s. Tea or milk are used as the starting materials in its preparation. The tapioca pearls known as boba, which are soft, chewy, and gummy, are used for glazing this tea. Jelly and fruit balls are among the additional components added to improve the tea's texture. Customers can choose whether they want their bubble tea served hot or cold, and a thick straw is utilized so that they can easily chew the pearls.
The market for bubble tea has grown significantly over the years and is anticipated to continue expanding steadily over the projected period. This is due to rising health awareness and increased adoption of bubble tea due to its health benefits and appeal to young and health-conscious consumers. The availability of bubble tea at more affordable rates and the addition of additional healthy ingredients by various market players fuel the expansion of the global bubble tea industry. Additionally, a growing vegan population contributes to the market's growth.
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Health benefits associated with Bubble Tea
One of the most widely favored drinks consumed worldwide is tea. Due to its numerous health advantages and high content of antioxidants like polyphenols, including flavonoids and catechins, bubble tea is becoming increasingly popular. These stop widespread cellular degeneration by stabilizing dangerous free radicals prevalent in the human body. This tea's nutritional profile includes trace amounts of potassium, manganese, magnesium, and calcium, as well as vitamins C, K, B12, B6, and E. (L-theanine). Moreover, as per research conducted by different organizations, tea is proven to prevent various cancers, lower cholesterol, boost immunity, facilitate weight loss, and prevent neurological diseases. Thus, such factors drive market growth.
Expansion in the Retail Market
The economic sector, known as the retail industry, consists of businesses and people selling goods and finished products to consumers. Numerous retail outlets, including grocery stores, forecourt merchants, discounters, convenience stores, and hypermarkets, sell bubble tea drinks and related goods. The bubble tea industry's three fastest-growing merchants are online sales, discounters, and convenience stores.
These stores act as global marketing tools that assist in building an impressive premium image and increase brand exposure to a wide variety of bubble tea products. Hence, retail expansion is a significant factor that accelerates market growth.
Addition of Artificial Preservatives, Color, and Excess Sugar in Bubble Tea
Bubble tea is slowly gaining popularity in different regions worldwide, owing to its refreshing taste and chewy texture of tapioca balls. This has led companies to produce ready-to-drink bubble tea in mass volumes. This mass-produced bubble tea contains a large volume of artificial preservatives & color that increases its shelf life and makes its appearance attractive. The use of artificial preservatives & color in bubble tea leads to various health problems in the long run. Furthermore, bubble tea contains high sugar levels, which increases the risk of developing Type 2 diabetes. Owing to an increase in health consciousness, individuals are constantly looking for organic and natural ingredients used in the manufacturing of bubble tea. Thus, using artificial preservatives & color and excess sugar in bubble tea restrains the market's growth.
Introduction of New Flavors
Players operating in the bubble tea market are launching different flavors, such as fruit, chocolate, and varying coffee beverage flavors, to expand their product portfolio and sales. Fruit flavors include plum, lychee, banana, green apple, kiwi, watermelon, cantaloupe, and other attractive flavors. Different distinctive flavors include barley, caramel, lavender, and avocado. This wide range of flavors allows consumers to choose their favorite bubble tea, thus providing a significant opportunity for future market growth.
The global bubble tea market is segmented by base ingredient, flavors, component, and region.
By base ingredient, the global bubble tea market is divided into black tea, green tea, oolong 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. Black tea is considered a dietary source of antioxidant nutrients. It is a rich source of antioxidant nutrients such as carotenoids, tocopherols, minerals such as Cr, Mn, Se, or Zn, and certain phytochemical compounds. These nutrients aid in removing free radicals from the body, which can damage or change cells. Moreover, black bubble tea's components help prevent chronic diseases like cardiovascular disease, diabetes, obesity, and cancer. Such health benefits of black bubble tea are responsible for driving the growth of the bubble tea market.
The green tea segment is the second largest. Among health-conscious consumers, bubble tea is a preferred diet beverage. Green tea serves as the base ingredient. Green tea enhances the body's physical performance and speeds up fat burning. Additionally, green tea can kill germs, which improves tooth health and reduces the risk of oral infection, increasing demand for the beverage. Moreover, an increase in the number of physic-conscious consumers also raises the demand for bubble tea with green tea as a base ingredient, which, in turn, drives the growth of the market.
The Oolong tea segment is the third largest. Oolong tea is partly fermented and mainly produced in northern and southern Fujian province, Guangdong province, and Taiwan in China. Oolong tea is a combination of green and black tea. Therefore, it has qualities of both. Among the total oolong tea production, 2% is consumed mainly in Taiwan, southern China, and most Eastern countries. The bubble tea with oolong tea as a base ingredient comes with various beneficial properties, which include antioxidant activity, anti-inflammation, anti-obesity, anti-cancer, hypoglycemic effect, prevention of heart disease, anti-aging, and anti-microbial effect. In addition, it helps to prevent skin from allergies and tooth decay. These properties make it popular among health-conscious consumers and boost the market's growth.
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. There are various types of bubble tea fruit flavors available in the market, which include avocado, banana, cantaloupe, coconut, grape, green apple, jackfruit, kiwi, lemon, pineapple, and watermelon. Health-conscious and vegan people prefer such different types of bubble tea flavors. Hence, owing to the rise in the number of vegan people and health-conscious consumers, the demand for fruit-flavored bubble tea also increases, which is responsible for the growth of the bubble tea market.
The chocolate flavor segment is the second largest. The brain is stimulated by chocolate, and it also relieves physical tension. All age groups are starting to like chocolate-flavored beverages. Bubble tea with a chocolate taste also helps the heart and reduces body fat. As a result, the market is expected to grow due to the increased customer demand for beverages flavored with chocolate and the health benefits of chocolate and bubble tea.
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. Health-conscious and young consumers much prefer bubble tea. These consumers are always eager to test new flavors in all beverages, such as tea, coffee, and cold beverages. The popularity of the combination of bubble tea with different liquid components such as black tea, green tea, fruit juice, coffee, and juice syrups is rising among consumers across the globe, which boosts the growth of the bubble tea market.
The sweetener segment is the second largest. Three types of sweeteners are generally used in bubble tea such as white or brown sugar, fructose, and honey. Sweeteners are sugar substitutes used for preservation and fermentation for brewing and winemaking. Artificial sweeteners are produced using harmful chemicals, which can cause indigestion and other health-related issues as the human body cannot handle harsh chemicals. Awareness regarding the detrimental effects of artificial sweeteners among consumers has promoted the growth of natural or organic sweeteners such as honey.
The creamer segment is the third largest. Creamer thickens bubble tea, which is either non-dairy or dairy based. Different types of creamers are used in bubble tea to increase its thickness. The creamers used for bubble tea include vegan ginger creamer, pumpkin creamer, and milk creamer. Creamer helps to change the texture and taste of the tea. The function of creamers is to develop a desirable color change and impart body to the tea. The popularity of thick Iced tea is growing in Asia-Pacific and LAMEA. Such factors help in the growth of the bubble tea market.
Region-wise, the global bubble tea market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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North America was the highest revenue contributor and is estimated to grow at a CAGR of 7.6%. Tea is a beverage that people across the globe consume highly. Young consumers are attracted to bubble tea due to its variety of flavors. A growing number of shops and businesses in the bubble tea industry further boost the market's growth. Moreover, innovations in flavors and increased popularity of bubble tea among all age groups in North America is responsible for driving the development of the bubble tea market in this region. In North America, the U.S. is the highest contributor to the growth of the bubble tea market. Most of the US population consumes coffee and chocolate-flavored bubble tea. Over the years, the per capita consumption of tea has been increasing, owing to the rise in preference for healthy beverages and the hectic lifestyle of people. Moreover, Canada and Mexico are dominated by green and black bubble tea-consuming populations, owing to the health benefits offered by these teas.
The Asia Pacific is the second largest region. It is estimated to reach an expected USD 1550 million by 2030, registering a CAGR of 8.4% during the forecast period. The demand for bubble tea in Asia-Pacific has grown significantly over the years, owing to its consumption. China, Japan, India, South Korea, Taiwan, and Australia are the major contributors to the growth of this region. The high penetration rate of packaged and unpackaged bubble tea in Asia-Pacific, expanding product range by established manufacturers, and increase in population drive the bubble tea market. Key regional players are actively investing in advertising campaigns and marketing to enhance their brand recognition and influence the market, which is projected to provide potential opportunities for market expansion.
Europe is the third largest region. European consumers are very much particular about their beverage selection. Moreover, the number of health-conscious consumers in this region has been rising for the past two decades. European consumers prefer premium tea products and are always eager to welcome a new taste in tea. Green and black bubble tea infused with fruit flavor tapioca balls are some of Europe's most frequently consumed bubble teas. Consumers prefer high-value specialty teas that offer a unique experience while drinking bubble tea and are knowledgeable about tea varieties. In addition, an increase in the health consciousness of the young population boosts the adoption of healthy bubble teas, which supplements the market growth. This further offers opportunities for bubble tea suppliers to provide unique tea blends, flavors, and ready-to-drink bubble teas.