Global Bubble Tea Market Size & Growth Trends Analysis Report

The prevalence of bubble tea, often referred to as pearl milk tea, has increased tremendously in recent years. Several important reasons that have contributed to bubble tea's success and universal appeal can be attributed to its expansion. The exclusivity and versatility of bubble tea is one of its fundamental growth factors. Unlike regular tea or coffee, bubble tea comes in a wide variety of flavors, including milk teas, coffee-based drinks, and teas flavored with fruit. Its versatility enables users to customize their drinks to suit their unique taste preferences, making it very appealing to a wide range of consumers. Additionally, adding tapioca pearls or other chewy toppings provides the beverage with a distinctive texture and a playful element, strengthening its allure.

The popularity of bubble tea has grown significantly as a result of social media's rise and its impact on food & beverage trends. The visual culture of cuisine has emerged because of recreational applications like Instagram and TikTok, where aesthetically pleasant and photogenic foods are hugely popular. With its tiered presentation, and recognizable bubble tea straw, bubble tea has become a popular topic on social media. As consumers seek out these fashionable & Instagrammable drinks, the trend of sharing visually appealing food & beverage experiences online has pushed bubble tea into the spotlight and contributed to its growth.

The accessibility of bubble tea has also contributed to its growth as well. Earlier, it was common to find bubble tea stores in metropolitan cities in Asia. However, independent & and chain bubble tea stores have started to appear in suburban and small-town regions, therefore, the beverage is widely available currently. Its popularity as a beverage solution has also grown as a result of the greater accessibility that has made bubble tea more widely known and appreciated.

However, the global bubble tea market faces restraints that can impact its growth and profitability. Consumers who are concerned about their health have questions about the possible repercussions of high sugar content and artificial additives. A risk is posed by shifting consumer trends and preferences, as demand may be impacted by desires for healthier substitutes or different flavors. Shops that sell bubble tea have responded by producing healthier varieties as more people look for drinks with natural ingredients and low sugar content. Consumers who are looking for a tasty and refreshing substitute to sugary sodas or artificially flavored beverages have been drawn to options including fresh fruit teas, tea-based drinks without additional sugars, and plant-based milk substitutes.

Impact of COVID-19

The COVID-19 pandemic also had a huge effect on the market. The bubble tea market experienced a decline in size, with an estimated value of USD 2.1 Billion in 2020, compared to USD 2.4 Billion in 2019, indicating a decrease in market value during the specified period. Numerous businesses had to shut down as a result of the broad lockdowns and limitations put in place to stop COVID-19 from spreading, which in turn also disrupted the industry's supply chain.

Consumer demand for bubble tea decreased as a result of decreased foot traffic and social distance-building strategies, which also affected business sales and revenue. The trend towards remote learning and work-from-home arrangements has also reduced the number of options for impulsive purchases and bubble tea shop trips. However, few companies adjusted by providing delivery and takeaway choices, utilizing internet platforms, and adopting creative packaging. The bubble tea market is steadily rebounding and has restored its growth pace as the pandemic situation improved and restrictions were removed.

Segmentation

The diverse market for bubble tea can be segregated into type, flavor, and component. The bubble tea type can be further segmented into black tea, green tea, and, oolong tea. With a market share of about 42.85% in 2022, the black tea category had the highest in the sector, and it is anticipated that it will continue to dominate for the duration of the projection. This achievement is attributable to its real-deal natural flavor and health advantages, which include lowering blood sugar and bad cholesterol levels, enhancing digestive health, and offering a tonne of antioxidants.

Similarly, the flavor segment can be further sub-segmented into fruit, taro, classic, coffee, and others. In 2022, the fruit flavor category accounted for the highest percentage of revenue—more than 37.85% and is anticipated to hold onto the top spot. The primary factor promoting the segment's expansion is the accessibility of a variety of fruit flavors, including strawberry, mango, passion fruit, watermelon, pineapple, cantaloupe, avocado, peach, coconut, lychee, grape, honeydew, kiwi, and banana. Furthermore, the component segment can be further segmented into liquid, flavor, creamer, sweetener, and others.

Regional Analysis

North America has the lead in the global bubble tea market in 2022, accounting for more than 36% of total revenue. Notably, the U.S. has seen an upsurge in the number of bubble tea shops across the nation, setting it up to acquire the greatest market share in the North America regional market for the duration of the projected period.

Correspondingly, The Asia-Pacific region has seen a tremendous increase in the bubble tea market in recent years which mainly includes Taiwan, China, and other major countries in Southeast Asia, as they are the originators of the growing bubble tea industry. On average, consumers in Southeast Asia spend a total of USD 3.66 Billion each year on bubble tea and other similar drinks. With a projected USD 1.6 Billion yearly turnover, Indonesia is the largest market in the area. Thailand came in second with USD 749 Million from its more than 31,000 bubble tea shops and other retail outlets. Singapore comes in fourth with USD 342 Million, followed by Vietnam in third place with USD 362 Million. Even though Singapore has the smallest population among the six major markets in Southeast Asia, it has the highest purchasing power when it comes to spending on bubble tea and other "new tea" beverages.

Moreover, due to changing consumer preferences and an upward trend in the desire for innovative and distinctive beverages, the bubble tea market in Europe has seen impressive growth. Popular bubble tea markets in the region now include the UK, Germany, France, and Spain. Particularly in the UK, the popularity of bubble tea has increased, leading to the opening of a large number of bubble tea shops in the region. A growing number of people are embracing the fad in Germany and France, where bubble tea culture is also expanding.

Competitive Analysis

Bubble tea businesses frequently concentrate on innovation and distinctiveness to stand out in this cutthroat market. Major key players of global bubble tea are Dama Foods International Co., Ltd, Lollicup USA Inc., Fokus Inc., Cuppo Tee Company Limited, Sumo's (M) Sdn Bhd, Huey-Yuhe Enterprise Co., Ltd., Boba Box Limited, Zacely Limited, Boba Box Limited, Zacely Limited (Bubble Tea House Company), CAFÉ POS, LLC, Kevito Ltd., Qbubble Troika J C Inc., KOI Thé CO, LTD., CoCo Fresh Tea & Juice, Tiger Sugar, Yummy-Town USA LLC, Ichibanya Co., Ltd. and Biju Bubble Tea. These companies have a significant presence in Asia, notably in Taiwan and China, where the beverage originated.

To draw customers, Bubble tea players experiment with ingredients, introduce new flavors, and come up with interesting pairings. Brands that can consistently provide a pleasurable bubble tea experience will likely draw repeat customers as well as gain an advantage over rivals. To draw in potential customers, businesses invest in appealing store designs, inventive packaging, and interesting social media advertising. BUBLUV, Inc., a New York-based startup, announced the arrival of its eagerly anticipated BUBLUV Bubble Tea in April 2022. The product is the first Ready-To-Drink (RTD) healthier boba replacement with fewer than 50 calories per bottle and no added sugar or chemical ingredients. They use influencers and digital platforms to market their goods and foster brand loyalty.

The price wars and smaller profit margins are the results of fierce market competition within the beverage industry. Businesses should prioritize quality and innovation, diversify their product offerings, and remain adaptable to shifting consumer demands in order to remain profitable in the market.

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The global bubble tea market is segmented as follows:

By Type (Revenue: USD Billion, 2018 – 2030)
●    Black Tea
●    Green Tea
●    Oolong Tea

By Flavor (Revenue: USD Billion, 2018 – 2030)
●    Fruit
●    Taro
●    Classic
●    Coffee
●    Others

By Component (Revenue: USD Billion, 2018 – 2030)
●    Liquid
●    Flavor
●    Creamer
●    Sweetners
●    Others

By Region (Revenue: USD Billion, 2018 – 2030)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe
 
● Asia Pacific
o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America
o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa
o GCC Countries
o South Africa
o Rest of Middle East & Africa