The global bubble tea market size was valued at USD 2.75 billion in 2022 and is projected to reach USD 5.42 billion by 2030, growing at a CAGR of 8.9% from 2023 to 2030. Increasing the intake of tea and coffee as nootropic drinks among working individuals and students is a major factor in the market growth. The global bubble tea market, valued at USD 2.75 billion in 2022, is projected to reach USD 5.42 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 8.9% from 2023 to 2030.

This growth is primarily driven by the increasing consumption of tea and coffee as nootropic beverages among working professionals and students, enhancing concentration and brain function. The appeal of bubble tea is further boosted by its low-calorie content, zero fat, and the growing demand for various hot beverages. Its popularity also stems from its diverse tastes and wide availability of flavors, including fruit, coffee, chocolate, and classic options.

Bubble tea beverages are typically prepared with ice, flavored syrups, and sugar. The rising preference for tea, coffee, and other flavored drinks over carbonated alternatives is expected to further propel product demand during the forecast period. The market experienced a period of slow growth due to the COVID-19 pandemic, which led to widespread lockdowns, raw material shortages, and a halt in the production of tapioca pearls. However, the industry is anticipated to expand rapidly in the post-pandemic era, building on its increasing popularity over the past decades. 

Key Market Trends & Insights

• North America led the industry in 2022 and accounted for the largest share of over 36.00% of the overall revenue. The high share can be attributed to the high demand & consumption of fruity flavors-based tea beverages. The U.S. has seen a rise in the number of bubble tea shops across the country in recent years.

• Based on type, the black tea segment dominated the industry in 2022 and accounted for the maximum share of more than 42.85% of the overall revenue and is expected to maintain dominance over the forecast period. This growth is attributed to the authentic natural flavor of black tea.

• Based on flavor, the fruit flavor segment accounted for the maximum share of more than 37.85% of the overall revenue in 2022.It is expected to maintain the leading position throughout the forecast period. The availability of various fruit flavors, namely strawberry, mango, passion fruit, watermelon, pineapple, cantaloupe, avocado, peach, coconut, lychee, grape, honeydew, kiwi, and banana, is the key factor driving the segment growth.

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Market Size & Forecast

• 2022 Market Size: USD 2.75 Billion
• 2030 Projected Market Size: USD 5.42 Billion
• CAGR (2023-2030): 8.9%
• North America: Largest market in 2022
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Major companies are actively expanding their global reach and introducing new flavors and tea options to gain a competitive edge. 

• In June 2019, Malaysia-based 'Secret Recipe' launched new bubble tea flavors, including boba signature fruit tea, boba brown sugar milk tea, and boba kopi-C.
• In April 2022, BUBLUV, Inc., a New York-based start-up, released its "BUBLUV Bubble Tea," marketed as the first Ready-To-Drink (RTD) healthier boba alternative with less than 50 calories per bottle and no added sugar or artificial components.

Key Players

• Bobabox Ltd.
• Bubble Tea House Company
• Fokus, Inc.
• Gong Cha
• ChaTime
• Lollicup USA, Inc.
• Bubble Tea Supply, Inc.
• T Bun International
• Ten Ren’s Tea Time
• Troika JC

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Conclusion

The global bubble tea market is poised for significant growth, driven by evolving consumer preferences towards healthier and flavorful beverages, the perception of tea and coffee as nootropic drinks, and the increasing availability of diverse flavor options. Despite a temporary setback from the COVID-19 pandemic, the market's strong recovery and expansion are anticipated, with key players focusing on innovation and global presence to capitalize on this growing trend.