Bubble Tea Market Set to Witness an Uptick during 2020 to 2027
Posted by Mrudula Anil Karmarkar on January 20th, 2022
The global bubble tea market size is expected to reach USD 4.2 billion by 2027 registering a CAGR of 8.9%, according to a new report by Grand View Research, Inc. Shifting consumer preference from carbonated drinks to zero-fat hot beverages, such as bubble tea, is expected to be the key factor for the market growth.
Asia was the largest regional market in 2020 and accounted for 35% of the global share. The region will retain its dominant position throughout the forecast years on account of high consumption of bubble tea in countries including Taiwan, China, and Thailand. In addition, according to the ASEAN Post, which was published in December 2020, the average consumption of bubble drinks in Thailand was six cups per person per month.
Major companies in this market are expanding their global presence through various business strategies. For instance, in September 2020, The Alley, a renowned Taiwanese restaurant chain, inaugurated its first restaurant in New York City. Thus, increasing number of restaurant chains specialized in bubble hot beverages is anticipated to boost market growth over the forecast period.
Rising consumption of tea and coffee as nootropic drinks among students and working-class population is a key factor for the market growth. Moreover, zero fat and low calorie contents of such beverages are propelling the demand further. The rising popularity of various kinds of hot beverages is also likely to boost the demand for bubble tea, thereby augmenting the market growth. In addition, health experts recommend that moderate consumption of such drinks boosts concentration and improves brain function.
Bubble tea is gaining popularity owing to its distinct taste and availability of various flavors, such as fruits, chocolate, coffee, and simple classic. These beverages are prepared with ice, sugar, and flavored syrups. Rising preference for tea, coffee, and other hot beverages over carbonated drinks is projected to boost the demand for bubble tea. On the other hand, the market may experience sluggish growth over the next few years on account of the recent breakdown of Coronavirus (COVID-19), which has resulted in the lockdown of major cities across the globe.
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Black tea held the largest market share of more than 45% in 2020 and is expected to maintain dominance over the forecast period. This growth is attributed to the authentic natural flavor of black tea. Moreover, the drink helps reduce the blood sugar level and bad cholesterol and improve gut health. It also acts as an excellent source of antioxidants.
Bubble Tea Market Report Highlights
Major companies are focusing on expanding their global presence. In addition, key market players are launching new varieties of flavors and tea options to gain a competitive advantage. For instance, in June 2020, Malaysia-based ‘Secret Recipe’, a famous restaurant chain, launched new bubble tea flavors including boba signature fruit tea, boba brown sugar milk tea, and boba kopi-C. Some of the prominent players in the global bubble tea market include:
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
Articles Posted: 881
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