The global bubble tea market revenue was valued at USD 2.63 billion in 2024 and is expected to expand from USD 2.83 billion in 2025 to USD 4.78 billion by 2032, registering a CAGR of 7.81% during the forecast period. In 2024, Asia Pacific dominated the market, holding a 43.35% share.
The bubble tea trend, which originated in Asia, has rapidly gained popularity in Western countries such as Canada and the U.K.. Now a staple beverage, bubble tea is recognized for its unique formulation, consisting of high-quality milk, sweetener liquid, tapioca pearls, creamer, and fruit powder. More than just a drink, bubble tea has become a global cultural icon, symbolizing Taiwan’s food innovation within the food service industry.
For instance, Nextrends Asia 2021 reported a 330% surge in Taiwan’s exports of pearl milk tea base ingredients, including raw materials, packaging, and machinery, compared to 2018. Additionally, the rise of gastronomic tourism, increasing health-conscious consumers, and the impact of social media have significantly contributed to the market’s growth and future potential.
Information Source:https://www.fortunebusinessinsights.com/industry-reports/bubble-tea-market-101564
Segments
Black Tea Segment to Experience Significant Demand from 2023 to 2030
As global consumers become increasingly health-conscious, the black tea segment is expected to grow at a notable CAGR during the forecast period. Black tea is widely promoted due to its powerful antioxidant, anti-aging, and anti-diabetic properties. A key driver of this segment’s growth is the rising consumer preference for natural and organic food and beverage products. Additionally, the green tea segment is projected to capture a substantial share of the bubble tea market, following closely behind black tea.
Fruit Flavor Gaining Popularity in the Coming Years
The market is segmented into coffee, fruit, chocolate, original, and other flavors. In 2019, fruit flavor dominated the market, outpacing other flavors in popularity. The segment includes a variety of flavors such as lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, and lemon. The increasing demand for tea-based fruity beverages, combined with their higher nutritional value compared to other flavors, is expected to drive significant market growth. Meanwhile, the chocolate flavor segment is anticipated to witness the fastest growth in the coming years due to rising consumer demand for chocolate-infused beverages across all age groups.
Report Coverage
The report provides:
- Analysis of major growth drivers, challenges, opportunities, and restraints impacting the market.
- Comprehensive insights into regional market developments.
- A list of key industry players shaping the competitive landscape.
- Overview of strategic initiatives adopted by market participants.
- Recent industry advancements, including product launches, partnerships, mergers, and acquisitions.
Drivers and Restraints
Expanding Variety of Boba Tea Offerings to Drive Market Growth
Consumer preferences are shaped by several factors, including taste, pricing, branding, and accessibility. As a result, tea manufacturers must develop high-quality and diverse offerings that cater to evolving consumer tastes. The rising popularity of bubble milk tea is primarily attributed to its flavor, accessibility, and continuous reinvention of traditional tea recipes.
The market holds immense potential due to the availability of various boba tea options, including fruit-flavored, green jasmine, and black tea-based milk teas. For instance, in April 2022, U.S.-based startup Bubluv Inc. introduced three new flavors of tapioca starch and konjac-based boba tea, reflecting the industry’s efforts to innovate and expand.
Regional Insights
Asia Pacific to Lead as Consumers Explore New Beverage Options
In 2022, Asia Pacific held the largest market share, valued at USD 0.96 billion. Vietnam and Taiwan are expected to be the highest revenue-generating markets. To attract consumers and expand their market presence, many manufacturers and entrepreneurs in the boba tea industry are opening their own cafés and specialty tea shops. For example, in September 2020, Chen Shucheng launched Meme Xpress, a new bubble milk tea franchise in Singapore.
Meanwhile, North America held the second-largest market share and is expected to retain this position throughout the forecast period. The increasing popularity of tea-based beverages is driving steady growth in North American countries. Additionally, Europe has also witnessed a rise in pearl milk tea consumption, following a similar trend seen in Asia-Pacific.
Competitive Landscape
Leading Companies Focus on Innovation to Meet Growing Consumer Demand
To cater to rising consumer demand, key market players are enhancing ingredient functionality in boba tea beverages. Companies such as Lollicup U.S.A. Inc., Gong Cha, Chatime, Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company are actively investing in research and development to introduce new and exciting tea varieties. Many major competitors are also expanding their franchise networks into new locations, leveraging their strong brand popularity and customer loyalty.
List of the Companies Profiled in the Report:
- Chatime Group (China)
- Gong Cha (Taiwan)
- Coco Fresh Tea & Juice (Taiwan)
- Quickly (U.S.)
- Xing Fu Tang (Taiwan)
- Lollicup USA, Inc. (U.S.)
- TIGER SUGAR (China)
- Yummy Town (Cayman) Holdings Corporation (Happy Lemon) (Taiwan)
- O.I. The Co, LTD. (Taiwan)
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Key Industry Development:
- October 2021 – Del Monte introduced Joyba Bubble Tea in select retail outlets, including Costco, Circle K, Albertsons, Target, and Safeway.