In 2024, the global bubble tea market was valued at USD 2.63 billion. This market is projected to rise from USD 2.83 billion in 2025 to USD 4.78 billion by 2032, reflecting a compound annual growth rate (CAGR) of 7.81% during the forecast period. The Asia Pacific region led the market with a 43.35% share in 2024.

Bubble tea continues to flourish in its region of origin and has steadily gained popularity in Western nations like Canada and the United Kingdom. Known for its distinct combination of ingredients, the beverage has established itself as a staple in the global market. Typically made with milk, sweeteners, liquid tapioca pearls, creamer, and fruit powders, bubble tea is now seen as a cultural symbol of Taiwanese culinary innovation. Notably, the 2021 Nextrends Asia report recorded a 330% increase in Taiwan’s exports of bubble tea base components—such as raw materials, packaging, and machinery—compared to 2018. Additionally, factors like the rise of culinary tourism, health-conscious consumer behavior, and the influence of social media have further accelerated market expansion.

Information Source: https://www.fortunebusinessinsights.com/industry-reports/bubble-tea-market-101564 

Market Segmentation

Black Tea Segment to Witness Strong Growth Through 2030

Driven by increasing health awareness among consumers, the black tea segment is anticipated to experience robust growth during the forecast period. Its popularity stems from its antioxidant, anti-aging, and anti-diabetic benefits. The segment's growth is also bolstered by a growing demand for natural and organic food and beverages. Green tea is another rapidly expanding segment, closely following black tea in popularity.

Rising Demand for Fruit-Flavored Varieties

The market is segmented by flavor into coffee, fruit, chocolate, original, and others. Fruit-flavored bubble tea led the market in 2019, with flavors such as mango, lychee, passion fruit, strawberry, kiwi, lemon, and more. These varieties are preferred not only for their taste but also for their enhanced nutritional value. Meanwhile, the chocolate segment is expected to grow at the fastest rate in the coming years due to the increasing demand for chocolate-based beverages across all age demographics.

Report Highlights

The report offers:

• In-depth analysis of key drivers, constraints, challenges, and opportunities shaping the market
• Detailed insights into regional developments and market trends
• Profiles of significant industry players and their strategic initiatives
• Coverage of recent advancements including new product launches, mergers, and partnerships

Growth Drivers and Constraints

Diverse Product Offerings Fueling Market Expansion

Consumer preferences are influenced by factors such as flavor, affordability, branding, and convenience. In response, tea producers are focusing on delivering high-quality, innovative, and diverse offerings. The widespread appeal of bubble tea lies in its flavor, ease of access, and evolving product variations.

The market offers significant growth potential due to the availability of multiple options including fruit-based teas, jasmine green teas, and black milk teas. For instance, in April 2022, U.S.-based Bubluv Inc. introduced three innovative boba tea flavors made with tapioca starch and konjac, reflecting ongoing industry innovation.

Regional Outlook

Asia Pacific Maintains Lead Amid Rising Consumer Exploration

Asia Pacific held the dominant position in 2022, with a market value of USD 0.96 billion. Countries such as Taiwan and Vietnam are expected to generate the highest revenues in the region. Entrepreneurs and companies are launching specialty tea shops and cafés to attract more consumers. For example, in September 2020, Chen Shucheng launched the Meme Xpress bubble tea franchise in Singapore.

North America ranked second and is anticipated to maintain this position throughout the forecast period, fueled by the rising interest in tea-based beverages. Europe is also witnessing increased consumption of pearl milk tea, following trends seen in Asia Pacific.

Competitive Landscape

Innovation as a Core Strategy Among Key Players

To address growing consumer demand, leading companies are investing in enhancing the functional ingredients of their products. Firms such as Lollicup U.S.A. Inc., Gong Cha, Chatime, Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company are actively involved in R&D to bring innovative flavors and formats to the market. Many are also expanding their franchising operations, leveraging strong brand recognition and customer loyalty.

Key Players Covered:

• Chatime Group (China)
• Gong Cha (Taiwan)
• CoCo Fresh Tea & Juice (Taiwan)
• Quickly (U.S.)
• Xing Fu Tang (Taiwan)
• Lollicup USA, Inc. (U.S.)
• TIGER SUGAR (China)
• Yummy Town (Happy Lemon) (Taiwan)
• O.I. The Co, LTD. (Taiwan)

Tariff Impact Analysis for Bubble Tea Market: https://www.fortunebusinessinsights.com/enquiry/request-sample-us-tariff/bubble-tea-market-101564 

Recent Development

• October 2021 – Del Monte launched its Joyba Bubble Tea in select retail chains such as Costco, Target, Safeway, Circle K, and Albertsons.