Bubble Tea Market: Current Analysis and Forecast (2021-2027)

Bubble Tea Market: Current Analysis and Forecast (2021-2027)

Bubble Tea Market is anticipated to display a CAGR of around 7.7% over the forecast period (2021-2027). The global Bubble Tea market was valued at US$ XX million in 2020 and is expected to witness exponential growth of XX% during the forecast period reaching US$ XX million by 2030. Due to the growing popularity of café culture, sales of bubble tea or pearl milk tea are growing astronomically. In addition to this, increasing demand for healthier alternatives to carbonated drinks is fueling the bubble tea market growth. Moreover, another prominent factor driving the growth of the bubble tea market is a surge in the consumption of flavored bubble tea among the young population. Furthermore, aggressive advertising and celebrity endorsements have helped the market to reach new heights.

However, health concerns associated with excess sugar content in these drinks, changing consumer preference toward organic beverages, and rising trend of coffee consumption are the most challenging factors projected to restrain the market growth.

Insights Presented in the Report

“Amongst Type, Black Tea segment held significant market share in 2020”

Based on the type, the market is bifurcated in Black Tea, Green Tea, Oolong Tea, and White Tea. Among these segments, the black tea segment acquired the largest share of the market and is projected to continue this trend throughout the forecast period. This is primarily due to the increasing popularity of bubble tea with black tea as a base ingredient. Along with this, rising consumption of black tea by health-conscious consumers is likely to contribute to the segment growth Additionally, a gradual shift in consumer preference towards natural and organic food and beverage products is another crucial factor driving the demand for black tea.

However, the green tea segment is expected to experience the fastest growth during the forecast period, owing to a surge in the number of health-conscious consumers across the world. According to NCBI, consumption of healthy and natural ingredients like green tea help in reducing weight gain when consumed regularly.

“Amongst Flavor, Fruit Flavor to witness fastest growth rate”

Based on flavor, the market is segmented into Original Flavor, Fruit Flavor, Chocolate Flavor, and Coffee Flavor. Among these segments, the fruit flavor segment is the most prominent segment attaining the highest share in the bubble tea market. It is mainly due to the rising demand for healthy beverages along with better taste among consumers. There is numerous flavor available in the market such as mango, lychee, plum, peach, strawberry, banana, avocado, kiwi, grape, lemon, and others. The demand for fruit flavor is projected to increase significantly during the forecast period owing to its high nutritional value and presence of diversity in flavor.

Moreover, chocolate and coffee flavor is also expected to capture a substantial share in the market owing to their high popularity among all age groups. Adding chocolate flavor to tea offers various health benefits like motivating the functioning of the brain and relieving physical stress. Also, these flavors are widely adopted as healthy energy drinks, thereby contributing to the overall market growth.

“North America will Dominate the Market During the Forecast Period”

North America acquires the largest share of the global bubble tea market. The region’s growth is attributed to the soaring awareness regarding healthy lifestyles and increasing adoption of healthy beverages by health-conscious consumers. Along with this, high disposable income and mounting consumer expenditure on healthy beverages boost the popularity of bubble tea in the region. Countries in North America are gradually shifting their preference towards the consumption of bubble tea owing to the rising attractiveness of tea-based fruity beverages. Moreover, there has been a surge in the bubble tea stores in the region, which, in turn, is contributing to the bubble tea market growth. Also, rising consumer inclination towards no and low-alcoholic beverages is another factor encouraging the growth of the bubble tea market in North America.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
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• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry