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The bubble tea market size is estimated to grow by USD 1.29 billion at a CAGR of 7.43% between 2023 and 2028. The rising accessibility and availability of bubble tea through organized retailing, such as tea shops and cafes, are expanding its consumer base. Additionally, the growing tea cafe culture, where bubble tea is often a popular menu item, is driving market growth. Moreover, the perceived health benefits of tea, such as its antioxidant properties and use of natural ingredients, are attracting health-conscious consumers. These factors combined create a favorable environment for the growth of the market.
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The market share growth by the black tea segment will be significant during the forecast period. Black tea is obtained from the extreme oxidation of Camellia sinensis. During the oxidation process, tea leaves are exposed to moist, oxygen-rich air, making black and green tea a popular choice. Thus, the leaves turn into a dark-brownish black color, thereby forming black tea.
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Black tea shows a gradual increase in market share of USD 992.60 million in 2018. Black tea has a strong flavor compared with other types of tea and is the most commonly used variety of tea in the world. Consumers in countries such as the UK and Turkey prefer black tea. However, the consumption of black tea in the UK is witnessing a slight decline due to the increasing competition from substitutes such as coffee. At the same time, black tea consumption in Turkey is continuing to witness a progressive growth rate. Kenya is among the top producers of black tea. However, the most popular black tea comes from the Indian regions of Assam and Darjeeling hills and Sri Lanka. Darjeeling's black tea is considered the world's best black tea and is also known as the champagne of tea. The high consumption of black tea and organic tea is expected to be a major factor driving the growth of the market during the forecast period. Key companies supply black tea in the form of tea bags, leaves, and powder. Therefore, the diversified product offerings by the leading companies are expected to be another prominent factor driving the black tea segment of the market during the forecast period.
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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is expected to hold the largest market share of the market during the forecast period, owing to the high consumption of tea in countries such as India, Japan, and China. The people in these countries generally prefer tea to instant coffee, and tea is consumed multiple times a day. The constant demand for tea from these countries has aided the growth of the tea market, including the market, in this region. Brewing and drinking tea is part of everyday life in most of the countries in APAC and the region has a high availability of high-quality tea leaves. Moreover, the prominent companies in the market, such as Fokus, are based in APAC. These factors will help in the growth of the market in APAC during the forecast period.
Furthermore, the growth of the market in APAC can be attributed to the health benefits of these with the availability of several flavors and variants. With the increasing gross national income in countries such as China, India, and Indonesia, the trend of premiumization appears across APAC. The increasing income is expected to increase the demand for premium tea products such as bubble tea in developing APAC economies such as Indonesia.
The market is witnessing a surge driven by innovative flavors like lychee, mango, passion fruit, and plum, alongside classics such as avocado, banana, and grape. Emerging brands like Momentum Work, Guming Holdings, Koi The Co, and Moge Tee are popularizing these nootropic drinks known for their low-calorie contents and zero fat offerings, appealing particularly to the young generation concerned about health risks such as obesity, heart disease, cognitive decline, and cancer associated with high sugar intake. Emphasizing raw ingredients and reduced sugars, bubble tea continues to evolve with consumer preferences, blending health consciousness with diverse flavor profiles. The market's growth is fueled by ongoing innovation in ingredients and formulations, catering to a global audience seeking refreshing and health-conscious beverage options in a vibrant and competitive landscape.
The rising accessibility and availability through organized retailing are notably driving the market growth. Organized retail has experienced significant growth worldwide, marked by the emergence of hypermarkets, supermarkets, and specialty stores like Walmart in the US and Tesco.com in the UK. Supermarkets, in particular, play a crucial role as major distribution channels for providing nutritious, convenient, and affordable food and beverage items. They offer a wide range of products, providing a superior customer experience compared to other types of stores.
Moreover, the demand for supermarkets is steadily increasing in many developed and developing economies due to rising populations and urbanization. Large organized retailers such as Walmart are key suppliers of ingredients like tapioca balls, popping balls, and tea powder used in making bubble tea. This trendy drink involves a unique formulation, often blending sweetened tea with high-quality milk or creamer, adding fruit powder or flavors, and topping it off with tapioca balls or other ingredients. Supermarkets and hypermarkets attract consumers with hefty discounts and visually appealing product placements, encouraging impulse purchases. These strategies contribute to increased sales of these through retail outlets, driving the growth of the industry in the coming years.
The introduction of new flavors is a major trend in the boba market. The companies have introduced several flavors, ranging from fruity flavors such as peach and strawberry to other flavors such as almond and chocolate, thereby creating a large portfolio of choices for customers. The introduction of a variety of flavors is helping in attracting consumers who have a liking for different tastes. For instance, in June 2021, McDonald's Corp., a quick-service restaurant, launched two new bubble tea flavors-a malty, chocolate Ovaltine flavor, and an aromatic matcha flavor.
Further, millennials and young consumers are experimenting with new flavors, and this has encouraged companies to innovate in terms of flavors. The retailers are coming up with their own customized tea formats that will enable them to change the composition according to consumer demand. Such factors are expected to boost the growth of the industry during the forecast period.
Price volatility of raw materials is a major challenge in the boba market growth. Climatic changes are a major threat to global tea production. Hence, it is expected to limit the growth of the market. Climatic changes have a significant impact on the ecosystem of tea and affect crop yield. The shortage of rainfall in tea-producing areas affects the quantity and quality of tea leaves. Extreme climatic changes due to global issues like global warming and greenhouse gas emissions also affect tea production. This will increase the price of tea, which will adversely affect the adoption.
However, apart from tea, the production of cassava is facing production challenges due to various factors such as low soil fertility, low yields, labor shortages, and competition from weeds. This has impeded the production of cassava, which is required to make tapioca balls. Since tapioca balls are important ingredients in making bubble tea, the decrease in the production of cassava and an associated increase in cassava prices can limit the growth of the industry during the market forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Fanale Drinks - The company's key offerings include a wide variety of bubble tea.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is diversifying with a range of refreshing options including kiwi, lemon, and innovative flavors like watermelon, pineapple, cantaloupe, coconut, and honeydew. Popularized by hot beverages infused with flavored syrups and jelly-like pearls, bubble tea appeals to consumers seeking both indulgence and health benefits. Health experts recognize its potential benefits for concentration and brain function, attributed to ingredients like caffeine and amino acid L-theanine. With a focus on raw material supply and the incorporation of antioxidants and polyphenols, bubble tea promotes gut health and reduces inflammation, while managing blood sugar levels and bad cholesterol. Variants such as the taro flavor offer a vanilla-like taste and creamy, starchy texture, catering to diverse taste preferences and enhancing the market's appeal among health-conscious and flavor-seeking consumers worldwide.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.43% |
Market growth 2024-2028 |
USD 1.29 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.77 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
China, Taiwan, UK, US, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Boba Box, Boba Tea Direct, BossenStore.com, Bubble Tea House Co., Bubble Tea Supply, Chen En Food Product Enterprise Co. Ltd., Empire Eagle Food Co. Ltd., Europe BoBoQ GmbH, Fanale Drinks, Fokus Inc., HUEY YUHE ENTERPRISE CO. LTD., Karat by Lollicup, Krishna Food India, Possmei International Co. Ltd., Sumos M Sdn Bhd., Sunnysyrup Food Co. Ltd., Sunwide Bubble Tea, Troika JC, and Yen Chuan International Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecasting period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Flavor
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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