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The bubble tea market size is estimated to grow at a CAGR of 7.5% between 2022 and 2027. The size of the market is forecast to increase by USD 1,226.22 million. The growth of the market depends on several factors, including the rising accessibility and availability through organized retailing, the growing tea cafe culture, and the health benefits of bubble tea.
This report extensively covers market segmentation by product (black tea, green tea, and others), flavor (fruit flavor, chocolate flavor, coffee flavor, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising accessibility and availability through organized retailing are notably driving the boba market growth. Organized retailers have grown significantly across the world, with the establishment of hypermarkets, supermarkets, and specialty stores such as Walmart in the US and Tesco.com in the UK. Supermarkets are some of the major distribution channels supplying nutritious, convenient, and affordable food and beverage items. People can get a variety of products at supermarkets, and these stores offer a better customer experience compared with other stores.
Owing to the growing population and increasing urbanization, the demand for supermarkets is growing steadily in many developed and developing economies. Ingredients such as tapioca balls, popping balls, and tea powder required for making bubble tea are predominantly sold by large organized retailers such as Walmart. The hefty discounts that supermarkets and hypermarkets offer and the strategy of aesthetic product placing encourage potential consumers to make impulsive purchases. These strategies boost the sales of bubble tea through retail stores such as supermarkets and hypermarkets, which will drive the growth of the global bubble tea industry during the forecast period.
The introduction of new flavors is a major trend in the boba market. Bubble tea vendors 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.
Millennials and young consumers are experimenting with new flavors in bubble tea, and this has encouraged vendors to innovate in terms of flavors. Bubble tea retailers are coming up with their own customized tea formats that will enable them to change the bubble tea composition according to consumer demand. Such factors are expected to boost the growth of the global bubble tea 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 global bubble tea 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 of bubble tea.
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 global bubble tea industry during the forecast period.
The bubble tea 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 Bubble Tea Market Customer Landscape
Vendors 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 operates under multiple segments including tea and flavourings, and toppings among others. 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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. 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 960.31 million in 2017 and continued to grow until 2021. 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 is expected to be a major factor driving the growth of the global bubble tea market during the forecast period. Key vendors supply black tea in the form of tea bags, leaves, and powder. Therefore, the diversified product offerings by the leading vendors are expected to be another prominent factor driving the black tea segment of the global bubble tea market during the forecast period.
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APAC is estimated to contribute 42% 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 global bubble tea 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 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 bubble tea 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 vendors 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 bubble tea market in APAC can be attributed to the health benefits of bubble tea coupled 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.
In 2020, the outbreak of COVID-19 in APAC negatively impacted the regional bubble tea market. However, in 2021, the initiation of vaccination drives, and the lifting of lockdown restrictions resumed activities in hotels and cafes. This has increased the demand for bubble tea offline. With the growing popularity of and fascination for bubble tea, along with the rising millennial population, there has been a rise in the number of tea consumers in APAC. Food promotions on social media are becoming more prevalent, which is influencing customer perception and behavior and expanding their food preferences. It is anticipated that rising consumer spending, consumer awareness, and disposable income will support the regional bubble tea market's expansion. Thus, such factors are expected to drive the growth of the regional bubble tea market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Bubble Tea Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.5% |
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Market growth 2023-2027 |
USD 1,226.22 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.5 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, China, Taiwan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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