Global bubble tea sales are expected to grow at a (CAGR) of 9.5% over the assessment period 2024 to 2034, from an expected USD 3,632.4 million in 2024 to a projected USD 8,887.6 million in 2034.
The bubble tea market has saw notable growth and innovation in recent years, driven by a blend of creative Flavor offerings and the influence of social media. As a beverage that originally emerged from Taiwan, bubble tea, or boba tea, is recognized globally, attracting a diverse customer base which is in the search of the unique taste and products.
One of the most important trend in the bubble tea market is the introduction of innovative flavors. Traditional bubble tea primarily featured classic combinations, such as milk tea with tapioca pearls. However, modern cafes and manufacturers are expanding their flavor profiles to include sensational new choices.
Such as, Popping Boba Bubble Tea has gained immense popularity, featuring popular flavors like peach, lychee, and strawberry. These flavored boba pearls burst with juice when bitten, adding an additional layer of sensory enjoyment to the drink.
Also, tea shops are trying out unique ingredients and combinations, such as matcha, taro, and even savory flavors such as cheese foam. Seasonal offerings, such as pumpkin spice or holiday-themed flavors, allow bubble tea cafes to capitalize on consumer trends and preferences, creating buzz and encouraging repeat visits. This change not only caters to varying taste preferences but also helps bubble tea shops establish a unique identity within a consolidated market.
| Attributes | Description |
|---|---|
| Estimated Global Bubble Tea Market Size (2024E) | USD 3,632.4 Million |
| Projected Global Bubble Tea Market Value (2034F) | USD 8,887.6 Million |
| Value-based CAGR (2024 to 2034) | 9.5% |
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| Particular | Value CAGR |
|---|---|
| H1 | 8.5% (2023 to 2033) |
| H2 | 8.8% (2023 to 2033) |
| H1 | 9.1% (2024 to 2034) |
| H2 | 9.6% (2024 to 2034) |
The table shows the projected compound annual growth rate (CAGR) for the global bubble tea marketplace from 2024 to 2034. The annual growth rate for the first half of this period (H1 2024 to 2034) is expected to rise to 9.1%. This growth is expected due to the rising popularity among the young adults and the customizable flavors and topping options and versatility to go with any other drink format such as the alcoholic beverages, growth is expected to be higher in the second half (H2 2024 to 2034).
Previously, in the first half of the 2023 to 2033 period, the sector growth was lower than the current CAGR owing to people just catching up on the trend of boba tea and limited awareness. However, the market gained momentum in the second half of 2023 to 2033, achieving a growth rate of 8.8%.
This indicates the demand for the bubble tea is increasing in the countries such as UK as there are multiple new bubble tea shops opening up and as the ready-to-drink format of the bubble tea are now seeing on the shelfs of the hypermarkets and the super market.
Increasing Incidences of Outbreaks
Fizzy creations are shaking up the bubble tea market by mixing Boba pearls into carbonated beverages and energy drinks. Even coffee, shakes, and smoothies are coming with the boba. Bubble shakes and smoothies provide extra texture with familiar fruity flavors, while Boba slushies turn traditional bubble tea recipes into trendy iced teas.
As bubble drinks gain popularity, DIY kits and ready-to-drink (RTD) options are getting sold more. These kits come with pre-made Boba pearls and bases, giving consumers freedom to mix and match flavors as per their preference. Some bubble tea shops are even exploring alcoholic bubble drinks, like Bobba’s alcoholic bubble teas in Canad.
The bubble drink category has grown significantly because it fits with current trends in the beverage industry. They are fun, customizable, and offer a unique sensory experience. Plus, their vibrant colors and toppings make them perfect for sharing on social media
Increasing Popularity of Bubble Tea Among Young Adults
Bubble tea, once primarily enjoyed by East Asian communities, has rapidly gained popularity among young women in Europe and North America. Early adopters of bubble tea are often those who have grown up with it, particularly within Asian cultures. However, as they introduce the drink to their friends, the consumer base has become increasingly varied, attracting a wider range of customers.
Market research shows that bubble tea is particularly popular among young female consumers aged 10 to 20. This demographic's desire to drink has been heavily affected by social media and pop culture.
Celebrities, particularly K-pop singers and social media influencers, routinely promote bubble tea on social media platforms. Their popularity has encouraged interest among young people, who are generally more willing to sample novel flavors and beverages inspired by diverse cultures.
Bubble tea, which was first popular among East Asian diaspora communities in the United States and the United Kingdom, is now developing as a trendy beverage for young people who have no direct connection to Asian culture. This trend reflects a rising openness and interest in varied gastronomic experiences among younger generations.
Interestingly, many young people in these locations may not recognize conventional bubble tea preparations since they have been exposed to a variety of novel flavors and toppings that have adapted to local tastes.
The Bubble Tea Boom: A Global Phenomenon in the UK Market
The bubble tea market is experiencing rapid growth globally, with a significant rise in the number of shops and brands emerging in major cities. In the UK alone, there are +1,400 bubble tea shops, making it a central hub for bubble tea manufacturers in UK This quick expansion reflects a strong acceptance of bubble tea among consumers, who are increasingly drawn to its unique flavors and customizable options.
The popularity of bubble tea in the UK is marked from consumer engagement, with an average of 119,000 searches for bubble tea each month. This high search volume indicates a growing interest and curiosity about the drink, as more people look to explore the various offerings available. As bubble tea shops continue to pop up, they are not only catering to traditional tastes but also adapting their menus to attract a wider range of customers.
This trend is further supported by the lively culture supporting bubble tea, fuelled by social media and word-of-mouth channel. As more brands enter the market and consumers search for new flavors and experiences, the bubble tea industry is expected to grow.
Principal Consultant
During the historic period from 2019 to 2023, the bubble tea market experienced a major surge in demand for the unique toppings of the bubble tea. This increase was largely driven by the people again started to gather around and the cafes and the restaurants reopening after the Covid-19 lockdown.
People were excited for going back to new normal and as a result they were looking forward to new and innovative product categories in the market and bubble tea got the attention as it is a vibrant beverage which can be fused with multiple beverage options.
Looking ahead to 2024 to 2034, the bubble tea market is predicted to continue increasing. This rise will be fueled by the introduction of novel package formats such as RTD Cans, which are aimed at providing convenience to consumers with busy lifestyles. For example, Vinut has introduced new flavors of bubble tea in RTD cans that make them easy to carry.
Along with the packaging format, the brand is also focusing on the innovative flavor offerings that grab the consumers' attention. As many consumers are interested in trying out new flavors and parings of the bubble tea, the brands with a variety of the unique flavor offerings and the paring would have an upper hand in the bubble.
In the bubble tea industry, well-established players such as CoCo Fresh Tea & Juice, Gong Cha, and Quickly hold a significant market share, ranging from 10-15%. These Tier 1 players dominate the market in the developed countries as there are more organized chains of the bubble tea shops. These players benefit from standardized practices, extensive marketing strategies, and a strong consumer base that supports consistent quality and branding.
In contrast, the situation is quite different in South Asian countries, where bubble tea has been present for several years but the industry remains less organized. Local shops and small-scale vendors often dominate this market, reflecting a more fragmented approach. These regional players cater to the unique preferences of their communities but may lack the resources and infrastructure that larger chains in developed markets possess.
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The table below shows sales from sales in key countries, along with estimated growth rates of the Bubble Tea sector.
| Countries | CAGR (2034) |
|---|---|
| USA | 12.3% |
| India | 13.1% |
| China | 8.1% |
| Germany | 11.4% |
| Japan | 8.9% |
Convenience is vital in today's fast-paced environment. While bubble tea can be made at home, because of its portable cup and straw packaging, many people choose to buy it from a local bubble tea store. Younger buyers looking for quick and easy answers are drawn to its portable packaging. It is easy to transport and can be consumed while moving or traveling.
Neighbourhood shops are preferred in the USA for bubble tea-like beverages because these shops can quickly offer fresh tea in an easy-to-carry format. However, packaged bubble tea instant kits are likely to gain popularity with fewer restaurants and bubble tea chain options, such as Minnesota, Kansas, and Alaska.
The bubble tea market in the UK is booming, owing to part to the growing number of bubble tea shops in areas with high student populations. Cities with many universities are seeing a surge in these shops, making it easier for students to enjoy their favorite drinks.
This increased presence is supporting to boost sales of bubble tea, as multiple shops mean more options for consumers. Young people, particularly students, are often looking for trendy and fun beverages, and bubble tea fits the requirement.
In addition to the development of bubble tea shops, the availability of ready-to-mix bubble tea drinks in stores is an important factor to growth. Consumers can now find these products in a variety of places, including hypermarkets, supermarkets, convenience stores, and club stores. This availability allows individuals to enjoy bubble tea at home or on the go.
Ready-to-mix bubble tea kits often include pre-made Boba pearls and flavor bases, allowing customers to make their own drinks with little effort. This convenience appeals to busy students and young professionals who want to enjoy a delicious beverage without having to visit a store. The option to modify flavors and create novel combinations increases the thrill of the drink, making it.
In China, bubble tea is a preferred drink that has been enjoyed for many years. Recent surveys by FMI indicate that the demand for bubble tea in China is expected to grow at a steady CAGR. This popularity creates a great opportunity for Chinese bubble tea companies to expand their market reach.
As these companies have prepared to export bubble tea to other countries, they have a significant advantage. They have well established brands, unique flavors, and experience in producing high-quality beverages. This expertise will support these companies to stand out in emerging markets, such as India, Thailand, and Singapore, where bubble tea is also gaining popularity.
In India, for example, the growing young population is wants to try new beverages, and bubble tea could easily catch their attention. Similarly, in Thailand and Singapore, where street food and trendy drinks are part of the culture, the introduction of authentic Chinese bubble tea could meet an increasing demand for diverse and interesting flavors.
By entering these new markets, Chinese bubble tea companies can tap into a wide range of consumers who are excited about trying unique drinks. This expansion not only benefits the companies but also enhances the local beverage scene by introducing more options for consumers.
| Segment | Format- Ready-To-Drink |
|---|---|
| Value Share (2024) | 87.6% |
Because of its convenience and flavor diversity, experts predict that the ready-to-drink bubble tea sector will account for 87.6% of market value in 2024. Consumers can enjoy bubble tea in two forms: ready-to-drink (RTD) and quick mixes, which allow them to blend the ingredients at home to make their favorite bubble tea. The Ready-to-Drink Bubble Tea industry is expected to grow at a 9.3% CAGR, reaching a market value of USD 7,005.4 million in 2033.
Ready-to-Drink Bubble tea is available in a number of tastes, including normal milk tea, fruit tea, and herbal tea, making it easier for customers to pick a flavor that they like. In contrast, instant mixes frequently come in a restricted range of basic flavors.
| Segment | Distribution Channel- Indirect Sales |
|---|---|
| Value Share (2024) | 32.5% |
Increased accessibility to the bubble tea has been provided by these retail stores. Read-To-Drink variety or DIY kits are provided making it the convenient for the consumers who do not have the bubble tea shop in the close proximity. The chances of impulse buying are increased as consumer can easily choose the bubble tea while doing grocery shopping.
A variety of bubble tea products, including ready-to-drink bottles, instant mixes, and bubble tea kits, is carried by these retail channels. This diversity allows choices to be made by consumers between enjoying bubble tea at home or on the go. Different flavors and formats are made available, appealing to a broader audience.
Partnerships with retailers are being formed by many bubble tea brands to increase visibility. Promotional displays or special offers are often created as a result of these collaborations, attracting consumers.
Previously, product portfolios were less diverse, but as demand has grown, major players are now focusing on developing new products. Likewise, the increasing online presence of B2B suppliers is helping them raise awareness about their authentic ingredients and connect with end-user customers.
Suppliers are also pushing novel packaging solutions, such as spill-proof cups, lids, and straws. In addition, companies are employing initiatives such as mergers, acquisitions, partnerships, facility expansions, and collaborations to increase their distribution networks and broaden their global reach.
As per Format type, the industry has been categorized into Ready-To-Drink, and Ready-To-Mix.
As per the Toppings, the industry is sub-segmented into Tapioca Pearls, Popping Bob Bursting Bubbles, Taro Balls, Coconut Jelly, Red Bean, Grass Jelly, and Fruit Bites.
Unflavored, Flavored, Nut Flavored, Honey, Mocha, Caramel, Vanilla, Taro, and others are key Flavors covered in report.
The distribution channel segment includes Food Service Industry, and Direct Sales the direct sales is further categorized into Hypermarket Supermarket, Convenience store, Grocery Retailers, Specialty Retailers, Wholesale Stores.
Industry analysis has been carried out in key countries of the regions such as North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
The global Bubble Tea sales are estimated at a value of USD 3,632.4 million in 2024.
Sales of Bubble Tea increased at 7.4% CAGR between 2019 and 2023.
7 Leaves Café, Boba Guys, Boba Loca, Bubbleology, CoCo Fresh Tea & Juice, DaBoba, Del Monte Foods Inc., Gong Cha, Happy Lemon Bubble Tea, J Way Foods - are some of the leading players in this sector.
The North America sales is projected to hold a revenue share of 22.6% over the forecast period.
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