In 2024, the global bubble tea market revenue was valued at USD 2.63 billion. Projections indicate growth to USD 2.83 billion in 2025, reaching USD 4.78 billion by 2032, with a compound annual growth rate (CAGR) of 7.81% over the forecast period. The Asia Pacific region led the market in 2024, accounting for 43.35% of the total share.

Originally from Taiwan, bubble tea continues to thrive in its domestic market and is gaining strong momentum in Western countries such as Canada and the United Kingdom. This beverage—traditionally crafted with a blend of milk, sweeteners, tapioca pearls, creamers, and fruit powders—is now recognized as a signature of Taiwanese culinary innovation. The 2021 Nextrends Asia report revealed that Taiwan’s exports of bubble tea ingredients, packaging, and equipment surged by 330% between 2018 and 2021. Factors such as culinary tourism, growing health awareness, and social media influence are also fueling market expansion.

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

Market Segmentation

Black Tea Segment Expected to See Strong Growth by 2030

Health and wellness trends are driving demand for black tea, supported by its antioxidant, anti-aging, and anti-diabetic qualities. The growing interest in natural and organic beverages further supports this segment’s expansion. Green tea is also seeing notable growth and remains a close competitor.

Increasing Demand for Fruit-Based Flavors

The market is segmented by flavor into fruit, chocolate, coffee, original, and others. In 2019, fruit flavors led the market, with mango, lychee, passion fruit, kiwi, lemon, and strawberry among consumer favorites—not only for their taste but also for their perceived health benefits. The chocolate segment is projected to see the fastest growth, with rising demand across various age groups.

Key Insights from the Report

The report highlights:

• In-depth analysis of market drivers, challenges, and constraints
• Regional market patterns and emerging trends
• Profiles of leading industry players and their strategic initiatives
• Recent developments, including new product launches, mergers, and partnerships

Market Dynamics

Innovation and Product Variety Drive Demand

Flavor innovation, competitive pricing, brand strength, and convenience are key factors influencing consumer choices. Companies are meeting demand with inventive, high-quality tea offerings. The diversity and versatility of bubble tea contribute to its widespread appeal.

Numerous options—such as jasmine green tea, black milk tea, and fruit-based varieties—promise further growth potential. For instance, in April 2022, U.S.-based Bubluv Inc. introduced three novel boba tea flavors using konjac and tapioca starch, underscoring the market’s continuous innovation.

Regional Insights

Asia Pacific Maintains Market Leadership

In 2022, Asia Pacific accounted for USD 0.96 billion in market value. Taiwan and Vietnam are among the top contributors. Companies are responding by opening dedicated bubble tea cafés and specialty shops. In one example, actor Chen Shucheng launched the Meme Xpress bubble tea franchise in Singapore in September 2020.

North America ranks as the second-largest market, with rising consumer interest in tea-based beverages. Meanwhile, Europe is seeing increased demand for pearl milk tea, inspired by trends from the Asia Pacific region.

Competitive Landscape

Top Players Focus on Innovation and Expansion

Market leaders are prioritizing improvements to functional ingredients and flavor innovation to align with evolving consumer preferences. Companies such as Lollicup USA Inc., Gong Cha, Chatime, Boba Box Limited, Fokus Inc., Sumos Sdn Bhd, Troika J.C. (Qbubble), and Boba Tea Company are investing in research and development, as well as expanding through franchising to build brand loyalty.

Key Market Players:

• 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)

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Industry Update

October 2021 – Del Monte expanded its presence in the U.S. market with the launch of Joyba Bubble Tea across major retail chains, including Costco, Target, Safeway, Circle K, and Albertsons.