The global bubble tea market growth is set to gain traction from its possession of numerous health benefits. Boba tea acts as an antioxidant. It is also preferred by health-conscious consumers owing to its low-fat and low-calorie content. Fortune Business Insights™ published this information in a new report, titled, “Bubble Tea Market Size, Share & Covid-19 Impact Analysis, By Type (Black Tea, Green Tea, Oolong Tea, and White Tea), Flavor (Original, Fruit, Chocolate, Coffee, and Others), and Regional Forecast, 2020 – 2027.” The report further states that the market size was USD 2.02 billion in 2019 and is projected to reach USD 3.39 billion by the end of 2027, exhibiting a CAGR of 7.2% during the forecast period.
COVID-19 Pandemic to Affect Growth Backed by Surging Prices of Tea
The Indian Tea Association mentioned that on an average, the prices of tea surged by 25%-40% owing to the complete lockdown in the major tea growing countries amid COVID-19. Other reasons for this are the drop in crop size and the irregular movement of cargo. The outbreak of this pandemic has also caused several manufacturers to shut their factories down for maintaining social distancing and preventing transmission of the virus. Our reports are specially curated to help you understand the current situation.
This Report Answers the Following Questions:
- What are the significant trends driving the market?
- What are the developments & innovations done by renowned companies?
- What are the challenges, opportunities, drivers, and hindrances for the market?
- Which are the new segments to focus in the coming years for prioritizing investments?
Drivers & Restraints
The emergence of New Flavors & Formulations to Drive Growth
Bubble tea is available in various flavors and types, such as black tea, jasmine, green tea, and fruit-flavored tea. The fruit-flavored ones are further segregated into sweetened fruit drink and cream drink. Consumers are provided with a wide range of products to choose from. To attract more consumers, prominent companies are introducing new formulations and flavors, as well as opening new outlets worldwide. These factors are set to aid the bubble tea market growth in the coming years. However, the increasing trend of consuming coffee in Western countries may hamper demand.
List of the Leading Companies Profiled in the Global Bubble Tea Market are:
- Chatime Group (Taiwan, China)
- Bubble Tea Supply Inc. (Hawaii, United States)
- Gong Cha (Taiwan, China)
- CoCo Fresh Tea & Juice (Taiwan, China)
- Quickly (Taiwan, China)
- Kung Fu Tea (New York City, United States)
- Tiger Sugar Korea (Seoul, South Korea)
- Boba Loca USA Inc. (United States)
- Lollicup USA, Inc. (United States)
- Happy Lemon (United Kingdom)
Black Tea Segment to Grow Rapidly Fueled by Preference by Health-conscious Consumers
Based on type, the black tea segment held 41.70% in terms of bubble tea market share in 2019. This growth is attributable to their rising preference by health-conscious consumers across the globe. Consumers nowadays are inclining rapidly towards organic and natural beverages. It would also spur growth.
Increasing Sales in Taiwan & Vietnam to Augment Growth in Asia Pacific
Geographically, in 2019, Asia Pacific procured USD 823.90 million in terms of revenue. Bubble tea originally came from Taiwan. Later, it spread to the other countries of Asia Pacific. Taiwan and Vietnam would contribute to the maximum growth in this region because of the high rate of sales. North America, on the other hand, would hold the second-largest share because of the rising consumption of boba tea.
Key Players Aim to Open New Outlets Worldwide to Cater to High Demand
Several manufacturers are investing extensively in opening new outlets globally. Some of the others are trying to enhance the flavors and functionality of these teas for meeting the surging demand from the consumers.
Below are the Two Latest Bubble Tea Industry Developments:
- September 2020: BreadTalk, a multinational food and beverage corporation based in Singapore opened Charlie Tea at Takashimaya. The foundation of all beverages is based on three types of tea, namely, Red Phoenix, Mount Wu, and Green Jade.
- September 2020: Chen Shucheng, a Singaporean veteran actor opened a new outlet of Meme Xpress, a Malaysian bubble tea brand in Singapore. It specializes in brown sugar and yoghurt-based beverages.