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Bubble Tea Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global bubble tea products market was valued at USD 4.7 billion in 2022 and is expected to expand at a CAGR of 8.2% from 2023 to 2030. Bubble tea products are gaining popularity due to the wide range of flavors and ingredient combinations, as well as its unique presentation. The increasing availability of bubble tea products through offline and online channels is driving the market. Furthermore, the growing popularity of bubble tea products among millennials and Generation Z is driving the demand.
The increasing demand for ready-to-drink bubble tea products is driving the market. Furthermore, the demand for tea-based drinks, such as bubble tea, is increasing due to the growing awareness of health benefits associated with tea consumption. Additionally, the rising trend of customization is driving the demand for bubble tea products. For instance, consumers are customizing their bubble tea drinks by adding different toppings, such as popping pearls, jelly, and pudding, as per their preferences.
The increasing demand for bubble tea flavors is driving the market. Bubble tea products are available in a wide range of flavors, including matcha, mango, honeydew, taro, and strawberry. Furthermore, vendors are also introducing new flavors such as coconut, lychee, and winter melon to capture the attention of consumers. For instance, in April 2021, Coco Fresh Tea & Juice launched a new bubble tea flavor, Caramel Coconut Float, which is a combination of coconut, caramel, and fresh milk.
The rising trend of on-the-go bubble tea products is driving the market. Consumers nowadays prefer bubble tea products that are easy to carry and can be consumed without any mess or hassle. To meet this demand, vendors are introducing portable bubble tea products, such as bubble tea sachets, which can be easily stored and carried. For instance, in May 2021, Taiwanese bubble tea brand Xing Fu Tang launched a range of on-the-go bubble tea sachets, which are easy to carry and can be consumed anytime, anywhere.
The increasing demand for bubble tea products from developing countries is driving the market. For instance, the demand for bubble tea products is increasing in countries such as India and China. Additionally, the increasing popularity of bubble tea products among the younger population is driving the market in these countries. Furthermore, vendors in these countries are introducing new flavors and product ranges to capture the attention of consumers. For instance, in April 2021, India-based bubble tea brand Chaayos launched a range of bubble tea products in flavors such as mango, blueberry, masala chai, and chocolate.
Product Insights
The bubble tea powder segment is anticipated to hold the largest share in the bubble tea products market in 2022, owing to its high shelf life, convenience of product storage, and the easy process of making bubble tea beverages with the powder. In addition, the availability of various flavors and the presence of different brands offering bubble tea powder are also driving the growth of the segment. According to a survey conducted by AsiaOne, in 2019, more than 70% of the respondents purchased bubble tea powder to make bubble tea beverages at home.
The bubble tea syrup segment is anticipated to expand at the fastest CAGR of 10.2% over the forecast period. Growing demand for bubble tea syrup products due to their low cost and easy availability is expected to drive the growth of the segment. Moreover, bubble tea syrup products are available in various flavors, which is fuelling the demand for bubble tea products. For instance, according to an article published by PopSugar, in October 2020, the most popular bubble tea syrup flavor is mango.
Distribution Channel Insights
The supermarkets and hypermarkets segment captured the major share of over 35.2% in 2022. Supermarkets and hypermarkets are the most popular distribution channels for bubble tea products, as they offer convenience and a wide range of products. Moreover, customers prefer these supermarkets and hypermarkets due to their attractive discounts and promotional offers. According to a survey conducted by the World Food and Technology Institute in 2021, more than 62% of consumers prefer to buy bubble tea products from supermarkets and hypermarkets.
The online segment is anticipated to expand at the highest CAGR of 11.5% over the forecast period. The increasing penetration of the internet and smartphones has led to the growth of e-commerce platforms, which offer various discounts and promotional offers on bubble tea products. This trend is expected to propel the growth of the online segment of the bubble tea products market. Furthermore, online stores have made it easier for consumers to access various bubble tea products, and this has further increased the demand for bubble tea products through online stores.
Type Insights
The instant bubble tea segment accounted for the largest revenue share of 70.2% in the year 2022. The increasing demand for hassle-free tea products is a major factor driving the growth of the instant bubble tea segment. Instant bubble tea manufacturers are introducing innovative products and flavors to meet the changing consumer preferences. For instance, in June 2022, Tealive, a Malaysian bubble tea brand, launched its new range of bubble tea products, which includes a range of yogurt-based drinks. This product is offered in a variety of flavors, including black tea, white tea, and green tea.
The ready-to-drink bubble tea segment is anticipated to expand at the highest CAGR of 9.7% over the forecast period. The increasing trend of ready-to-drink bubble tea among millennials and Generation Z is a key factor driving the segment. The convenience factor associated with ready-to-drink bubble tea is also likely to boost the market in the forecasted period. For instance, in June 2022, Happy Lemon, a Chinese bubble tea store, launched its ready-to-drink bubble tea range in the U.S. market. The product is available in two flavors, namely, original and winter melon.
Regional Insights
Asia Pacific is expected to hold a leading position in the global bubble tea products market during the forecast period. The presence of key players, such as Gong Cha, CoCo, and The Alley, in the region is driving the growth of the market. The rising demand for bubble tea across countries in the region is further expected to contribute to the market growth. For instance, according to the All Japan Convenience Store Association, bubble tea sales in Japan rose to a record ¥41.6 billion in 2021.
Europe is expected to witness significant growth during the forecast period. The presence of prominent players, such as Bubbleology, Chatime, and Kung Fu Tea, in the region is contributing to the growth of the market. Furthermore, the increasing trend of bubble tea consumption among millennials and young adults is expected to drive the market growth. For instance, in April 2021, Bubbleology opened its first store in Paris, France.
Financial Projections
In this part of the bubble tea products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your bubble tea products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a bubble tea products business comes from the sales of bubble tea products. This includes the sale of tea, tapioca, and other ingredients, as well as the sale of bubble tea equipment and accessories. Additionally, you may consider other sources of profit such as catering services, online sales, partnerships with cafes and restaurants, and the sale of merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the bubble tea products business running will be described. The list of operating expenses includes inventory and supplies, wages, maintenance and repairs, utilities, insurance policies, advertising, and others. Additionally, depending on the business model you choose, you may need to include additional costs such as raw materials, rent, and taxes.
Key companies & market share insights
Some of the key companies operating in the bubble tea market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, bubble tea giant Gong Cha launched a range of vegan-friendly bubble tea products.
– In August 2022, popular bubble tea chain Koi Thé announced the launch of its ‘bubble tea in a can’ product range.
– In October 2022, bubble tea innovator Boba Guys launched its line of ‘real fruit’ bubble tea drinks.
Some of the prominent players in the bubble tea market include:
– Gong Cha
– Boba Guys
– Koi Thé
– Coco
– The Alley
– Sharetea
– Kung Fu Tea
– iTea
– Chatime
– Daboba
Global Bubble Tea Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global bubble tea products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Bubble Tea Mixes
– Bubble Tea Syrups
– Bubble Tea Powders
– Bubble Tea Toppings
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Traditional Bubble Tea
– Fruit-Flavored Bubble Tea
– Milk Tea
– Others
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Current Market Size and Forecast for Global Bubble Tea Products?
[A]: The global bubble tea market size was valued at USD 4.63 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.2% from 2020 to 2027.
[Q]: What are the Key Regions for the Bubble Tea Products Market?
[A]: The Asia Pacific region is the largest and fastest-growing region for the bubble tea products market. The region is driven by the growing demand for bubble tea products in countries such as China, Japan, and South Korea.
[Q]: What are the Major Drivers of the Bubble Tea Products Market?
[A]: The market is driven by factors such as the increasing demand for convenient beverages, the increasing number of bubble tea outlets, and the growing popularity of bubble tea among young people.
[Q]: What are the Major Challenges Facing the Bubble Tea Products Market?
[A]: Major challenges include the health concerns associated with the high sugar and calorie content of bubble tea, and the availability of substitutes such as herbal teas and coffee.
[Q]: What are the Major Companies Operating in the Bubble Tea Products Market?
[A]: Major companies operating in the market include Chatime, Gong Cha, Ten Ren Tea, Boba Guys, CoCo Fresh Tea & Juice, Quickly, Lollicup, Coco, and Jin Tea.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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