Bubble Tea Market Expected to Reach $5.4 Billion by 2033

According to a new report published by Allied Market Research, titled, “Bubble Tea Market," The bubble tea market size was valued at $3.1 billion in 2023, and is estimated to reach $5.4 billion by 2033, growing at a CAGR of 5.9% from 2024 to 2033. In 2023, the black tea segment accounted for more than half of the total bubble tea market share and is expected to grow at a CAGR of 5.7% throughout the forecast period. North America is one of the prominent regions in the market that accounted for a sizeable share of the total market in 2023.

Bubble tea is a Taiwanese drink invented in Tainan and Taichung in the 1980s. It is prepared with tea or milk as the base component. This tea is glazed with boba, which are soft, chewy, and gummy tapioca tea pearls extracted from cassava root. Other ingredients, such as jelly and fruit balls, are used to enhance the texture of the tea. Bubble tea is served in a hot or cold form, according to the preference of consumers and a fat straw is used through which the pearls can be easily eaten by consumers. The adoption of bubble tea has been quite high in developed regions such as the U.S., Canada, and Germany while emerging countries such as China, Brazil, and India are catching up quickly.

The global bubble tea market has witnessed significant growth over the years and is expected to grow at a steady pace during the forecast period. This is attributed to growth in health awareness and rise in the adoption of bubble tea, owing to its health benefits and popularity among health-conscious consumers and the young generation. The availability of bubble tea at lower prices and the introduction of additional healthy ingredients in it by different market players drive the global bubble tea market growth. In addition, rise in the number of vegan people helps to drive the growth of the bubble tea market.

However, excess sugar content in these drinks leads to health issues restricting the market growth. In addition, due to the presence of artificial preservatives in bubble tea, consumers have changed their preference toward organic beverages, which hampers the growth of the global bubble tea market. On the contrary, the introduction of various new flavors and blends and high demand among the young population for a variety of teas are expected to provide lucrative bubble tea market opportunities for expansion. 

The bubble tea market is segmented on the basis of flavor, base ingredient, component, end user, and region. On the basis of flavor, it is categorized into original flavor, coffee flavor, fruit flavor, chocolate flavor, milk flavor, and others. On the basis of base ingredient, it is divided into black tea, green tea, oolong tea, and white tea. On the basis of component, it is classified into flavor, creamer, sweetener, liquid, toppings, and others. On the basis of end user, it is segmented into Generation Z, millennials, and Generation X. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Consumers all around the world have become very conscious about their health and body image. They look for viable alternatives to unhealthy food and beverages. Bubble tea is a healthy beverage with several benefits such as it helps to protect the body against free radicals that cause cellular damage. Moreover, it is available in different tastes and is quite a novel drink outside of Southeast Asian countries which boosts its attractiveness as a product.

On the basis of flavor, the fruit flavor segment was the most prominent segment accounting for the highest share in the bubble tea market. This is attributed to the change in preference of consumers toward healthy beverages and better taste. However, the chocolate flavor segment is expected to witness the highest growth, owing to an increase in its popularity in all age groups.

According to the bubble tea market analysis, in 2023, the black tea segment generated the highest revenue and is expected to remain dominant during the forecast period. This is attributed to rise in the popularity of bubble tea with black tea as the base ingredient across the globe. However, the green tea segment is expected to grow at the highest CAGR during the forecast period owing to growth in the number of health-conscious consumers across the globe.

On the basis of component, the liquid component segment generated maximum revenue in 2023 and is expected to continue this bubble tea market trend throughout the forecast period. This can be attributed to the availability of various options such as a combination of various liquid flavors and syrups. However, the sweeteners segment is expected to grow at the highest CAGR during the bubble tea market forecast period, owing to the availability of organic sweeteners such as honey-based sweeteners for bubble teas.

On the basis of end user, the millennials segment was the most prominent segment accounting for the highest share in the bubble tea market. The millennial generation's demand for distinctive, personalized drinks and lively social media trends are propelling the growth of the bubble tea industry. Bubble tea is becoming more popular as a choice for both social sharing and casual consumption since this population values innovative tastes, health-conscious options, and visually appealing presentations.

On the basis of region, North America accounted for the maximum share of the global market in 2023 and is expected to remain dominant during the forecast period. This is attributed to the higher expenditure of consumers on healthy beverages. Moreover, aggressive marketing and celebrity brand endorsements for various flavors of bubble tea help push sales in this region. However, Europe is expected to grow with the highest CAGR throughout the forecast period, owing to changes in the buying behavior of people and a rise in awareness of bubble tea in this region.

The key players operating in the market include Lollicup USA, Inc., CuppoTee Company, Bubble Tea House Company, Ten Ren's Tea Time, Boba Box Limited, Sumos Sdn Bhd, Gong Cha USA, Boba Tea Company, Troika JC. (Qbubble), and Fokus Inc.

The other players operating in the global bubble tea market are Bubble Tea Supply Inc., ChaTime, CoCo Fresh, Quickly, Kung Fu Tea, Boba Loca, Happylemon, Share Tea, T Bun International, Fanale Drinks, Grand Chainly, and Huey-Yuhe Enterprise.

KEY FINDINGS OF STUDY

• On the basis of flavor, the fruit flavor segment is the fastest-growing segment with a 6.3% CAGR.
• On the basis of base ingredient, the black tea segment was the largest in the market in 2023.
• On the basis of component, the flavor segment is the fastest-growing segment with a 6.6% CAGR.
• On the basis of end user, the millennials segment was the largest in the market in 2023.
• Region-wise, Asia-Pacific was the highest revenue contributor to the market in 2023.