The global market for bubble tea – also known as boba tea or pearl milk tea – is expected to grow at a CAGR of 8.3% between now and 2032, to be valued at $3.23 billion (€2.97 billion) at the end of the forecast period, new data has shown.
The global market for bubble tea stood at $1.46 billion in 2022, the from Persistence Market Research data found.
Originating in Taiwan in the 1980s, the popularity of bubble tea has extended across Asia, North America, Europe, fostered by the growth in dedicated bubble tea shops and franchises.
Bubble tea has gained a particularly strong following among younger consumers due to its customisable nature, featuring various flavours, toppings, and combinations to accommodate different preferences.
In North America, for example, bubble tea is associated with youth culture, social gatherings, and urban lifestyles, while in Asia, bubble tea remains dynamic with regional adaptations and advancements. In countries like Japan and South Korea, fruit-based bubble teas and cheese foam toppings have become popular, reflecting local tastes and culinary trends.
Innovation And Differentiation
In spite of the category's rapid growth, challenges remain, according to Ajaykumar Patil, marketing executive at Persistence Market Research.
"Despite its rapid expansion, the bubble tea market faces several challenges, including competition from coffee chains, health concerns related to sugar content, and supply chain disruptions," he explained. "However, these challenges also present opportunities for innovation and differentiation.
"Bubble tea vendors are exploring healthier alternatives by offering sugar-free options, natural sweeteners, and fresh fruit teas to cater to health-conscious consumers. Moreover, sustainability initiatives such as biodegradable straws, eco-friendly packaging, and ethically sourced ingredients are gaining momentum, aligning with consumer demands for eco-conscious practices."
Growth Trends
According to Persistence Market Research, trends that are likely to bolster the performance of the bubble tea category over the coming years include:
- Functional Ingredients: Incorporating functional ingredients like chia seeds, collagen, and superfood powders into bubble tea recipes is becoming more popular. This trend caters to consumers seeking wellness benefits and nutritional value.
- Online Ordering and Delivery: The increasing prevalence of online ordering platforms and delivery services has made bubble tea more accessible to customers.
- Collaborations and Limited Editions: Collaborations between bubble tea brands and popular influencers, celebrities, or food establishments are creating excitement and driving sales. Limited edition flavours, seasonal offerings, and themed promotions capture consumers' attention and generate enthusiasm.
- Global Expansion: The globalisation of bubble tea is ongoing, with emerging markets in Latin America, Africa, and the Middle East presenting untapped opportunities for expansion and market penetration.
