Bubble Tea Market Benefits from Expanding Franchise Models

The global bubble tea market was valued at USD 2.75 billion in 2022 and is projected to reach USD 5.42 billion by 2030, expanding at a CAGR of 8.9% from 2023 to 2030. Market growth is primarily driven by the increasing consumption of tea and coffee as nootropic beverages among working professionals and students, owing to their perceived benefits in improving alertness, concentration, and cognitive performance.

Key Market Trends and Insights

• North America dominated the global bubble tea market in 2022, accounting for over 36.00% of total revenue.
• The U.S. has witnessed a notable increase in the number of bubble tea outlets nationwide in recent years.
• By type, the black tea segment led the market in 2022, capturing more than 42.85% of overall revenue.
• By flavor, the fruit flavor segment held the largest share of over 37.85% in 2022.
• Asia Pacific is expected to register the fastest growth rate during the forecast period due to rising urbanization and evolving beverage preferences.

Market Size and CAGR

• Market Size (2022): USD 2.75 Billion
• Projected Market Size (2030): USD 5.42 Billion
• CAGR (2023–2030): 8.9%
• Largest Regional Market (2022): North America
• Fastest-Growing Region: Asia Pacific

The rising demand for low-calorie, zero-fat beverages is further supporting market expansion. Additionally, the growing popularity of various hot and specialty beverages is expected to boost bubble tea consumption. Health experts indicate that moderate intake of tea-based beverages may enhance brain function and concentration, contributing to their growing acceptance. Bubble tea continues to gain traction due to its wide variety of flavors, including fruit, coffee, chocolate, and classic milk tea options.

Bubble tea beverages are typically prepared using tea, ice, flavored syrups, sugar, and chewy tapioca pearls. Increasing consumer preference for tea- and coffee-based drinks over carbonated beverages is anticipated to fuel demand over the forecast period. However, the market experienced a temporary slowdown during the COVID-19 pandemic due to prolonged lockdowns, raw material shortages, and disruptions in tapioca pearl production. Despite these challenges, the popularity of bubble tea has steadily increased over the decades, and the industry is expected to witness strong post-pandemic recovery.

Market growth is partially restrained by health concerns associated with high sugar content in traditional bubble tea formulations. Excessive sugar consumption can lead to obesity, cardiovascular diseases, cognitive decline, Non-Alcoholic Fatty Liver Disease (NAFLD), and certain types of cancer. These health risks pose a challenge to market expansion. Nevertheless, the rising popularity of bubble tea among younger consumers presents opportunities for manufacturers to introduce innovative, reduced-sugar, and functional beverage variants. The visual appeal of colorful pearls and diverse flavors continues to attract a broad consumer base.

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Key Companies and Market Share Insights

Leading companies are emphasizing global expansion and continuous product innovation to strengthen their market position. New flavor launches and healthier alternatives remain key competitive strategies.

June 2019: Malaysia-based Secret Recipe introduced new bubble tea variants, including boba signature fruit tea, boba brown sugar milk tea, and boba kopi-C.

April 2022: BUBLUV, Inc., a New York-based startup, launched BUBLUV Bubble Tea, the first ready-to-drink (RTD) healthier boba alternative containing less than 50 calories per bottle, with no added sugar or chemical components.

Prominent players operating in the global bubble tea market include:

• 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

Conclusion

In conclusion, the global bubble tea market is poised for robust growth through 2030, supported by rising consumer preference for specialty tea beverages, expanding retail presence, and continuous flavor innovation. While health concerns related to sugar intake remain a key restraint, the introduction of low-calorie and functional bubble tea options is expected to unlock new growth opportunities. With strong demand across North America and rapid expansion in Asia Pacific, the market is well-positioned for sustained long-term development.

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