SEA’s bubble tea market on track for 20.7% annual growth
The growth is driven by demand for more experiential beverages.
The Southeast Asia bubble tea market is projected to grow from $3.84b in 2026 to $11.31b by 2034, representing a compound annual growth rate (CAGR) of 20.7%, according to a report by Intel Market Research.
The report attributes the market's growth to consumer demand for beverages that combine flavour, texture, and visual appeal.
It also notes that the regional market is dominated by multinational franchise chains, with Chatime, Gong Cha, and CoCo Fresh Tea & Juice holding a significant share through their extensive store networks across Singapore, Malaysia, Thailand, Indonesia, Vietnam, and the Philippines.
Millennials and Generation Z (Gen Z) consumers in countries including Thailand, Vietnam, and the Philippines continue to drive demand for customisable drinks with different toppings, contributing to repeat purchases and higher spending per transaction.
The report also says that increasing consumer interest in lower-sugar beverages and plant-based milk alternatives is influencing new product offerings.
Over the past three years, brands such as Chatime and Gong Cha have introduced options, including oat milk and less-sweetened fruit tea blends, in markets such as Indonesia, Malaysia, Thailand, Vietnam, and the Philippines.
These offerings reflect the growing health consciousness amongst urban millennials.
A separate report by Fortune Business Insights said companies are also developing lactose-free bubble milk tea products in response to growing cases of lactose intolerance.
Fortune Business Insights added that rising rates of obesity and diabetes have contributed to greater consumer interest in customisable beverages, including ginger tea and bubble tea.
The report also cited the inclusion of ingredients such as yoghurt, cream, and fruit pieces as contributing nutrients to some bubble tea products.
It referenced a 2022 study published in the National Library of Medicine, which found that chewing tapioca pearls increased salivary C-reactive protein (CRP) and calcium levels amongst study participants.
