Global bubble tea market estimated to reach US$4.3 billion by 2027
Varieties of the Taiwanese drink are expected to provide lucrative opportunities for market expansion.
The demand for bubble tea in and outside of Asia has yet to burst, with its market now estimated to to reach $4.3 billion by 2027 according to a report by Allied Market Research.
The insights agency firm said the estimate registers a CAGR of 7.80% from 2020 to 2027, noting that the market was valued at US$2.4 billion in 2019.
Demand for the Taiwanese tea-based drink, which was invented in Tainan and Taichung in the 1980s, has been quite high in “mature” regions such as the U.S., Canada, and Germany whilst emerging countries such as China, Brazil, and India said to be “catching up quickly.”
“Growth in health consciousness and increase in adoption of healthy beverages such as green tea, black tea, oolong tea, and white tea among consumers drive the market growth. Moreover, [the] rise in consumption of flavored bubble tea in [the] young generation fuels the bubble tea market growth,” the researchers said, adding that “aggressive” advertisements and celebrity endorsements have also helped the global market to pave its way toward growth.
However, they did note that excess sugar content in these drinks leading to health issues and trend of coffee consumption are expected to restrict the market growth.
“Due to the presence of artificial preservatives in bubble tea, consumers are changing their preference toward organic beverages, which hampers the growth of the global bubble tea market. On the contrary, introduction of various new flavors and blends and high demand amongst [the] young population for a variety of teas are expected to provide lucrative opportunities for the market expansion,” Allied Market Research noted.
Last year, the black tea segment accounted for more than half of the share in the total bubble tea market and is expected to grow at a CAGR of 7.50% throughout the forecast period. They also expect the green tea segment to grow “at the highest CAGR” throughout the forecast period, owing to “growth in the number of health conscious consumers worldwide.”
In terms of flavour, the fruit flavor segment was the most prominent segment accounting for the highest share in the bubble tea market in 2019, attributed to change in preference of consumers toward healthy beverages and “better taste.”
“However, the chocolate flavor segment is expected to witness highest growth, owing to increase in its popularity in all age groups for all flavored beverages and rise in awareness of health benefits of chocolate among consumers,” the research firm said.
