Bubble Tea Market Forecasts to 2028 – Global Analysis By Type (Green Tea, Oolong Tea, Black Tea and White Tea), Flavor (Strawberry, Classic, Fruit, Original and Other Flavors’), Component (Creamer, Sweetener, Liquid and Other Components), and By Geography

Bubble Tea Market Forecasts to 2028 – Global Analysis By Type (Green Tea, Oolong Tea, Black Tea and White Tea), Flavor (Strawberry, Classic, Fruit, Original and Other Flavors’), Component (Creamer, Sweetener, Liquid and Other Components), and By Geography

According to Stratistics MRC, the Global Bubble Tea Market is accounted for $2.29 billion in 2022 and is expected to reach $3.94 billion by 2028 growing at a CAGR of 9.51% during the forecast period. Bubble tea is a Taiwanese dish that is produced by combining a tea base with milk, fruit, and fruit juices before adding the distinctive bubbles—delicious tapioca pearls that settle at the bottom. These delightful fruit or tea infusions provide a pleasant and delightfully unusual drink and snack and may be served hot or cold. With a thick straw and clear glass, bubble tea is presented so that when you sip, tapioca balls, also known as pearls or boba, shoot up and can be eaten along with the delectable tea. The tapioca balls and the spherical bubbles produced by the vigorous shaking used in blending give bubble tea its name.

According to NCBI, healthy and natural ingredients such as green tea help in preventing weight gain and also in inducing weight loss when consumed regularly.

Market Dynamics

Driver

Expanding range of products

Consumers' rising product choices are influenced by a variety of variables, including brand, price, accessibility, and taste preferences. Because of all these factors, producers must create premium-quality teas while taking consumer preferences into consideration. The flavour, affordability, and growing reinvention of the traditional tea formula are mostly responsible for the spike in popularity of bubble milk tea. Since it provides several variations and flavours of boba teas, including fruit-flavored, black tea-based milk tea, and green jasmine, all over the world, bubble tea has a huge market potential.

Restraint

Availability of alternative caffeinated drink

The vast availability of other caffeinated and traditional drinks, such coffee and chocolate, together with the prevalent coffee consumption tendencies in Western nations, constitute a danger to market development despite the growing desire for such inventive tea beverages. The most popular and socially acceptable nootropic liquids worldwide are coffee and tea, and many users depending heavily on these caffeinated beverages to get their days started. Additionally, the expansion of the worldwide market is hampered by the availability of alternative options with equivalent benefits.

Opportunity

Consumers are moving towards healthier options

Owing to the ease of customization of healthy beverages like ginger tea and boba teas, customers are being encouraged to switch to them owing to the development of lifestyle illnesses like obesity and diabetes related with the busy lifestyles of consumers. Due to its versatility in terms of tea bases and toppings like jellies, fruit pieces, syrups and tapioca balls, milk tea is becoming a more popular speciality. Green tea-based milk tea has been shown in studies to be effective for reducing blood pressure and the risk of cancer. Due to the presence of diverse additions like yoghurt, cream, fruit pieces, and others, drinking bubble tea enhances the balance of vitamins and minerals in the body.

Threat

Presence of artificial preservatives and other harmful ingredients

Many operators apply preservatives to the tapioca pearls or boba in order to increase the earning prospects. These preservatives have been shown to be harmful to human health. Additionally, boba tea with added sugar, sweeteners, and colours has been related to various negative health impacts. Obesity, diabetes, and heart disorders are all associated with these dangerous components. The existence of such dangerous components in bubble or boba tea is noticed to operate as a restraint on the market's growth since the majority of people are transitioning to a healthier lifestyle.

Covid-19 Impact

Government agencies were obliged to impose stringent closures of eateries, farms, and industries in order to maintain safety precautions and create social segregation as a result of the COVID-19 epidemic. Transport delays have resulted from this, and the operation of both supply and demand for consumption points has come to a halt due to a staff shortage and a decrease in consumer visits to coffee shops during the lockdown. The Indian Tea Association 2020 claims that the lockdown in the tea-growing regions, which resulted in a reduction in crop size and difficulties in logistics and transportation, has caused an average increase in tea prices.

The black tea segment is expected to be the largest during the forecast period

The black tea segment is estimated to have a lucrative growth, due to the rising inclination of health-conscious customers in every area, the black tea category is anticipated to expand at a considerable CAGR throughout the forecast period. Due to its potent antioxidant, anti-aging, and anti-diabetic qualities, black tea is heavily promoted as well as the increase in consumer preference towards natural and organic food and beverage items.

The fruit segment is expected to have the highest CAGR during the forecast period

The fruit segment is anticipated to witness the highest CAGR growth during the forecast period, due to the fruit flavour, which is more popular than other flavours. Lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, lemon, and other flavours are among the flavour variations that are present in it. Due to its high nutritional content in comparison to other flavours, the great popularity of tea-based fruity beverages, and strong customer preference, this category is predicted to increase considerably over the course of the projection period.

Region with highest share

Asia Pacific is projected to hold the highest market shares during the forecast period owing to the nations with the highest sales are anticipated to be Vietnam and Taiwan. To draw customers and increase their market share, producers and business owners in the boba tea sector are opening their own cafés and restaurants.

Region with highest CAGR

South America is projected to have the highest CAGR over the forecast period, owing to the sales volume of the items would increase in South America. Different trends have begun to affect the food service industry due to globalisation, which has influenced the younger generation to try different beverages. However, in South American nations like Argentina and Brazil, where tea is less popular than coffee, it is still consumed.

Key players in the market

Some of the key players profiled in the Bubble Tea Market include Chatime Group, Gong Cha, Coco Fresh Tea & Juice, Tiger Sugar, Lollicup USA. Inc, Xing Fu Tang, Quickly, Yummy Town, Bobabox Ltd, Bubble Tea House Company, Fokus, Inc, T Bun International, Ten Ren’s Tea Time, Troika JC, Boba Tea Company, CuppoTee Company and Kuaikeli Enterprise Co., Ltd.

Key Developments

In July 2022, Chatime Launch Pokémon GO at U.K. and Taiwan Locations based AR game with more than 1 billion downloads worldwide since 2016.

In January 2020, Tiger Sugar, announced the expansion of its business production capacity in South Korea by selling with boba brown sugar milk tea known as “heukdang,” in Korea. The company’s franchise launched around 15 additional stores in the country and is keenly investing in spreading the awareness about the latest pearl milk tea.

Types Covered
• Green Tea
• Oolong Tea
• Black Tea
• White Tea

Flavours Covered
• Strawberry
• Classic
• Fruit
• Original
• Chocolate
• Coffee
• Other Flavours

Components Covered
• Creamer
• Sweetener
• Liquid
• Tapioca Pearls
• Other Components

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements