Bubble Tea Market: Current Analysis and Forecast (2021-2027)

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Bubble Tea Market is anticipated to display a CAGR of around 7.7% over the forecast period (2021-2027). The global Bubble Tea market was valued at US$ XX million in 2020 and is expected to witness exponential growth of XX% during the forecast period reaching US$ XX million by 2030. Due to the growing popularity of café culture, sales of bubble tea or pearl milk tea are growing astronomically. In addition to this, increasing demand for healthier alternatives to carbonated drinks is fueling the bubble tea market growth. Moreover, another prominent factor driving the growth of the bubble tea market is a surge in the consumption of flavored bubble tea among the young population. Furthermore, aggressive advertising and celebrity endorsements have helped the market to reach new heights.

However, health concerns associated with excess sugar content in these drinks, changing consumer preference toward organic beverages, and rising trend of coffee consumption are the most challenging factors projected to restrain the market growth.

Insights Presented in the Report

“Amongst Type, Black Tea segment held significant market share in 2020”

Based on the type, the market is bifurcated in Black Tea, Green Tea, Oolong Tea, and White Tea. Among these segments, the black tea segment acquired the largest share of the market and is projected to continue this trend throughout the forecast period. This is primarily due to the increasing popularity of bubble tea with black tea as a base ingredient. Along with this, rising consumption of black tea by health-conscious consumers is likely to contribute to the segment growth Additionally, a gradual shift in consumer preference towards natural and organic food and beverage products is another crucial factor driving the demand for black tea.

However, the green tea segment is expected to experience the fastest growth during the forecast period, owing to a surge in the number of health-conscious consumers across the world. According to NCBI, consumption of healthy and natural ingredients like green tea help in reducing weight gain when consumed regularly.

“Amongst Flavor, Fruit Flavor to witness fastest growth rate”

Based on flavor, the market is segmented into Original Flavor, Fruit Flavor, Chocolate Flavor, and Coffee Flavor. Among these segments, the fruit flavor segment is the most prominent segment attaining the highest share in the bubble tea market. It is mainly due to the rising demand for healthy beverages along with better taste among consumers. There is numerous flavor available in the market such as mango, lychee, plum, peach, strawberry, banana, avocado, kiwi, grape, lemon, and others. The demand for fruit flavor is projected to increase significantly during the forecast period owing to its high nutritional value and presence of diversity in flavor.

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Moreover, chocolate and coffee flavor is also expected to capture a substantial share in the market owing to their high popularity among all age groups. Adding chocolate flavor to tea offers various health benefits like motivating the functioning of the brain and relieving physical stress. Also, these flavors are widely adopted as healthy energy drinks, thereby contributing to the overall market growth.

“North America will Dominate the Market During the Forecast Period”

North America acquires the largest share of the global bubble tea market. The region’s growth is attributed to the soaring awareness regarding healthy lifestyles and increasing adoption of healthy beverages by health-conscious consumers. Along with this, high disposable income and mounting consumer expenditure on healthy beverages boost the popularity of bubble tea in the region. Countries in North America are gradually shifting their preference towards the consumption of bubble tea owing to the rising attractiveness of tea-based fruity beverages. Moreover, there has been a surge in the bubble tea stores in the region, which, in turn, is contributing to the bubble tea market growth. Also, rising consumer inclination towards no and low-alcoholic beverages is another factor encouraging the growth of the bubble tea market in North America.

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Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Bubble Tea Market were the three major steps undertaken to create and analyze the demand and sales of Bubble Tea across major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.

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Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Bubble Tea through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Bubble Tea, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are color, type, and product. Further regional level analyses were conducted to evaluate the overall demand for Bubble Tea in the global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing demand for Bubble Tea products like pan, scented supari, and pan masala. Historical trends and their year-on-year impact on the market size and share were analyzed. The demand and supply-side scenarios were also thoroughly studied.

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Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the market, and market shares of the segments and company. All the required percentage split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and sub-segments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the demand of Bubble Tea across the major regions globally
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Bubble Tea Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

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Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Bubble Tea market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type, flavor, component, distribution channel, and regions.

The main objective of the Bubble Tea Market Study

The current & future market trends of the Bubble Tea Market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Bubble Tea in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments of the industry
• Segments in the study include type, flavor, component, distribution channel, and regions
• Defined analysis of the regulatory framework for the Bubble Tea industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors about the industry
• Analyze the current and forecast market size of Bubble Tea across the globe. Major regions analyzed in the report include North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Spain, Rest of Europe); Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific); and Rest of World. Define and analyze the competitive landscape of the Bubble Tea sector and the growth strategies adopted by the market players to sustain in the fast-growing market

Deep dive regional level analysis of the industry

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