A rise in health consciousness, a surge in adoption of healthy beverages including green tea, and consumption of flavored bubble tea among the young generation drive the growth of the global bubble tea market.
Allied Market Research published a report, titled, “Bubble Tea Market by Base Ingredient (Black Tea, Green Tea, Oolong Tea, and White Tea), Flavor (Original Flavor, Coffee Flavor, Fruit Flavor, Chocolate Flavor, and Others), and Component (Flavor, Creamer, Sweetener, Liquid, Tapioca Pearls, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027″. According to the report, the global bubble tea industry generated $2.4 billion in 2019 and is anticipated to generate $4.3 billion by 2027, witnessing a CAGR of 7.8% from 2020 to 2027.
Prime determinants of growth
Rise in health consciousness, a surge in adoption of healthy beverages including green tea, oolong tea, black tea, and white tea among consumers, and consumption of flavored bubble tea among the young generation drive the growth of the global bubble tea market. However, excessive inclusion of sugar content in drinks that causes health issues and trend of coffee consumption hinder the market growth. On the other hand, the emergence of new flavors & blends along with increasing demand among the young population for different types of teas present new opportunities in the coming years.
- The outbreak of the COVID-19 pandemic has had a slight negative impact on the growth of the global bubble tea market.
- The pandemic affected the production, revenue, and supply chain of the bubble tea industry.
- Lockdown restrictions, ban on import and export activities, and interruption in supply chain activities created several challenges.
The black tea segment to maintain its leadership status throughout the forecast period
Based on base ingredients, the black tea segment accounted for the largest market share in 2020, holding more than two-fifths of the global bubble tea market, and is estimated to maintain its leadership status throughout the forecast period. This is attributed to a surge in awareness and health benefits including the prevention of chronic diseases such as obesity, diabetes, cardiovascular disease, and cancer. However, the green tea segment is estimated to maintain the highest CAGR of 8.2% from 2020 to 2027, owing to an increase in the number of fitness-conscious consumers across the globe.
The fruit flavor segment to dominate during the forecast period
Based on flavor, the fruit flavor segment accounted for more than three-fifths of the global bubble tea market in 2020 and is projected to continue to dominate during the forecast period. This is due to a surge in the number of vegan people and health-conscious consumers across the globe. However, the chocolate flavor segment would grow at the fastest CAGR of 8.4% from 2020 to 2027, owing to its ability to offer combined health benefits of both chocolate and bubble tea.
North America to maintain its dominant position by 2027
Based on region, North America accounted for more than half of the global bubble tea market in 2020 and is estimated to maintain its dominant position by 2027. This is attributed to rising in the number of tea and coffee consumers in the region. However, Europe is estimated to maintain the highest CAGR of 8.7% from 2020 to 2027, owing to a surge in tourism activities, health consciousness among the young population, and the prominence of bubble tea in the region.
Leading Market Players
- Bobabox Limited
- Bubble Tea House Company
- Fokus Inc.
- Gong Cha
- Lollicup USA, Inc.
- Sumo’s (M) SdnBhd
- Ten Ren’s Tea Time
- The Bubble Tea Company
- Troika JC.
SOURCE: Allied Market Research