Bubble Tea Market

Bubble Tea Market Outlook (2024 to 2034)

The global bubble tea market size is estimated to reach a size of US$ 1.71 billion in 2024. The market has been projected to climb to a value of US$ 3.72 billion by the end of 2034, expanding at a CAGR of 8.1% over the next ten years.

Growing demand for bubble tea is driven by the drink's diversity, with most bubble tea recipes containing the base mixed with fruit and milk, as well as chewy tapioca balls gaining popularity due to their slushy consistency.

Bubble tea serves a wide range of flavors. It has been identified as a modified beverage and is gaining enormous popularity in various regions.

Key Market Growth Drivers

• Pearl milk tea, increasingly popular as a healthier alternative to carbonated beverages, has significantly boosted demand for bubble tea. Consumers prefer beverages made with natural ingredients, and there is a rising demand for unique flavors. Customization is a major factor driving their popularity, with a tea base setting the flavor tone, complemented by fruit flavors such as mango and lychee.
• Ever-increasing consumption of tea and nootropic drinks among the working-class population and students, coupled with options featuring zero-fat and low-calorie content available at bubble tea shops, is a key driver of global market demand.
• Bubble tea is gaining traction in the food and beverages industry, driven by consumer interest in innovative beverages with bold flavors.
• Bubble tea offers many health benefits. It acts as an antioxidant, helping to slow cell damage, and its anti-inflammatory properties can lower cholesterol and triglyceride levels. It is also believed to have potential benefits for treating depression and other health issues.
• Popular flavors include fruit, green jasmine, and black tea. The availability of lactose-free options is further contributing to the expansion of the bubble tea market size.

Report Attribute	Detail
Bubble Tea Market Size (2024E)	US$ 1.71 Billion
Projected Market Value (2034F)	US$ 3.72 Billion
Global Market Growth Rate (2024 to 2034)	8.1% CAGR
East Asia Market Growth Rate (2024 to 2034)	8.4% CAGR
North America Market Share (2024E)	23.7%
Black Tea Segment Value (2024E)	US$ 736.2 Million
Flavored Bubble Tea Segment Value (2024E)	US$ 1.45 Billion
Key Companies Profiled	Kung Fu Tea; Ten Ren Tea, Inc.; Boise Boba; Woop Bubble Tea; Coco Tea; Empire Eagle Food Co.; Yen Chuan International Co., Ltd.; Gong Cha USA Ltd.; Quickly Corporation; BobaTea Factory; Possmei International Co., Ltd.; Bubble Tea House Company; Boba Guys, Inc.; Chatime; 8tea5; Tapioca Express, Inc.; The Inspire Food Company; TACHUNGHO; Sharetea.

What is Behind Rising Popularity of Bubble Tea?

“Role of Bubble Tea in Reducing Muscle Tension and Enhancing Cognitive Function”

Bubble tea franchises are increasingly being owned and operated by entrepreneurs who are adept at social media, seeking new business opportunities to expand their consumer base across demographics and devise effective growth strategies. Bubble tea contains carbohydrates, which are primary sources of energy for the brain, and it also supports cardiovascular health and the central nervous system.

Given the demands of professional life, which often involve multiple stressful activities throughout the day, drinking bubble tea can help reduce muscle tension, making daily tasks more manageable. Its caffeine content provides refreshment and aids in memory and cognitive function. Additionally, bubble tea strengthens the immune system and contains a variety of antioxidants that combat oxidative stress.

What are the Key Challenges Faced by Bubble Tea Producers?

“Negative Health Effects of Excessive Sugar Consumption”

Bubble tea contains more sugar than other drinks, and consumers are becoming more aware of the negative health effects of excessive sugar consumption, which can lead to health problems. Bubble tea contains approximately 400 calories; therefore, it should not be consumed regularly. This high sugar level can cause diabetes, tooth decay, and a decline in the body's immunity. It is also high in carbohydrates and deficient in essential nutrients such as vitamins, minerals, fiber, etc.

Country-wise Insights

East Asia is expected to hold a global bubble tea market share of 22.2% in 2024. Growing demand for bubble tea is primarily due to the growing popularity of cafés and quick-service restaurants in Asia, particularly Starbucks' rapid expansion in the region. The bubble tea craze has only grown since the introduction of companies such as Chatime, Koi, and Tiger Sugar in Asian cities that offer the bubble tea version of café culture.

Coffee shops and cafés are the fastest-growing foodservice segments, particularly in South Asian and Pacific countries. Bubble tea consumption in this region is expected to increase due to its unique flavors, convenience, and personalized requirements. Sales of bubble tea beverages are expected to rise due to the growing popularity of café culture and consumer demand for innovative and unique food.

What are the Opportunities for Bubble Tea Companies in the United States?

“Rising Consumption of Non-Aloholic Beverages and Plant-Based Food”

Attribute	United States
Market Value (2024E)	US$ 179.3 Million
Growth Rate (2024 to 2034)	8.5% CAGR
Projected Value (2034F)	US$ 407.3 Million

The United States is estimated to account for a market share of 44.3% in North America in 2024. More of the general population of the United States is increasingly consuming non-alcoholic beverages and vegan and plant-based food, which is a key bubble tea market trend in the country. Fruity beverages are also becoming more popular among the population, which is influencing the growth of the bubble tea market in the country. The number of people looking for something different to consume as far as beverages are concerned is constantly rising, and bubble tea manufacturers are leveraging this trend to bolster their market position.

Why is China a Key Market for Producers of Bubble Tea?

“Increasing Consumer Spending on Healthy Beverages”

Attribute	China
Market Value (2024E)	US$ 184.7 Million
Growth Rate (2024 to 2034)	8.1% CAGR
Projected Value (2034F)	US$ 403.2 Million

China is expected to have a key influence on the East Asia market with a revenue share of 48.7% in 2024. China is amongst the leading manufacturers of bubble tea across the globe. Consumers are spending a lot on healthy beverages, and ongoing projects are expected to help the region grow even more. While bubble tea originated in Taiwan, it has become extremely popular in mainland China, particularly since the mid-2010s.

Popularity of bubble tea is primarily driven by younger consumers. Bubble tea is gaining popularity on Chinese social media platforms such as Weibo and Douyin (TikTok) due to its visually appealing nature. A lot of the bubble tea shops in China use mobile ordering and payment systems, which makes purchases easier for tech-savvy customers.

Category-wise Insights

Based on topping, the tapioca pearls category occupies a substantial market share; however, popping boba, jellies, and other segments of bubble tea are projected to account for increased sales even more because of the innovations and flavors offered by manufacturers. Based on distribution channels, business-to-consumer sales of bubble tea are projected to show an upward trend during the forecast period.

Why is Demand for Green Tea So High Worldwide?

“Health Consciousness Trend Driving Consumption of Green Tea”

Attribute	Green Tea
Segment Value (2024E)	US$ 538.1 Million
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 1.19 Billion

The green tea segment is poised to account for 31.5% market share in 2024. This segment is growing in popularity as people are becoming more health conscious, preventing them from gaining weight and inducing weight loss through regular consumption. Green tea has also demonstrated long-term energy-inducing properties that have a positive influence on body metabolism regulation, driving market growth.

What Makes Fruit Flavors Such as Lychee and Mango Popular?

“Nutritional Value, Organic Nature, and Sugar-Free Properties of Fruit Flavored Bubble Tea”

Attribute	Flavored Bubble Tea
Segment Value (2024E)	US$ 1.45 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 3.17 Billion

The flavored bubble tea segment is poised to account for 84.8% of the overall market share in 2024. Fruit flavors are the most popular among consumers. Flavors include lychee, passion fruit, mango, plum, avocado, strawberry, banana, grape, lemon, and more. This segment is expected to expand significantly over the forecast period due to its high nutritional value, organic nature, and sugar-free properties when compared to other artificial flavors.

Consumers prefer beverages made with natural ingredients, and the demand for unusual flavors is increasing. Customization is a major reason why these drinks are so popular. A tea base establishes the flavor, which can be enhanced with fruit flavors such as mango and lychee, among others.

Competition Landscape

Key players in the bubble tea market are focusing on introducing innovative beverages with a wide range of flavors, including apple, dry fruits, milk flavors, and many more. Manufacturers have the opportunity to introduce new flavored drinks to the market because millennials are known for their eagerness to try new flavors.

• Chill Bubble Tea offers bubble tea that is kosher, halal, gluten-free, and gelatin-free. It also manufactures tea especially for vegans and lactose-free customers.
• Frothtea Bubble Tea achieved Singapore Food Agency certification recently by adhering to strict food hygiene practices and guidelines. It also uses Halal-certified raw materials.
• Sharetea operates more than 450 stores in 16 countries, including the United States, Canada, the United Kingdom, Australia, Singapore, Malaysia, the Philippines, and Indonesia, using various franchise models and branches.
• Tiger Sugar has operations in Europe, Asia, Taiwan, Oceania, and America. It is expanding its operations by opening branches in Hong Kong, Korea, Afghanistan, Germany, and other locations.

Fact.MR provides detailed information about the price points of leading manufacturers of bubble tea positioned across the world, sales growth, production capacity, and technological advancements, in this recently updated market report.

Segmentation of Bubble Tea Market Research

• By Ingredient :

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

• By Flavor :

  • Unflavored
  • Flavored

• By Format :

  • Ready-to-Drink
  • Instant Bubble Tea Mix Kits

• By Topping :

  • Tapioca Pearls
  • Popping Boba
  • Jellies

• By Distribution Channel :

  • Business to Business
  • Business to Consumer

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa