Pearl Milk Tea Market Industry Analysis, Growth, Trends and Forecast to 2026

Posted by anagha on July 12th, 2018

Pearl milk tea is a tea-based beverage, which is also known as boba juice, bubble tea, simply boba or bubble milk tea. Pearl milk tea is made by blending fruits, milk with tea along with tapioca, and can be consumed in both cold and hot forms. Bubble tea serves as a substitute to green tea, as it is highly cost-effective as compared to green tea. Its wide availability has led to increased consumption as compared to normal tea. This in turn, is increasing the demand for bubble tea among the young populace. The availability of varied fruit flavored bubble tea such as strawberry, honeydew, mango, green apple, and lychee among others is expected to drive growth of the pearl milk tea market during the forecast period. According to the National Center for Biotechnology Information, the pearl milk tea drinks are a part of sugar?sweetened beverages (SSB) group, as these beverages are sweetened with high fructose corn syrup (HFCS). These drinks thus pose a public health concern, as pearl milk tea drink fits the U.S. Dietary Guidelines for the definition of a SSB. The central ingredient of a pearl milk tea or a boba tea are the boba or pearl balls, which are made of tapioca with high sugar content and hence may accelerate the onset of diabetes and weight gain on regular consumption.

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Market Drivers

Some of the major factors driving growth of the pearl milk tea market are its properties such as low calorie and low-fat content, anti-inflammatory, antioxidants, and anti-carcinogenic. Pearl milk tea is a specialty tea and according to the Specialty Food Association, the sales of specialty tea was over 18% in 2015, which is a major opportunity for market players such as CuppoTee Company, Lollicup USA Inc., and Gong Cha USA. Bubble tea is a ready-to-drink beverage, which is highly preferred by the increasing working population. This in turn is expected to boost growth of the pearl milk tea during the forecast period. For instance, according to USDA Foreign Agricultural Service in Indonesia, in 2014, the value of ready-to-drink tea accounted to be US$ 32 billion in 2016, which is expected to grow up to US$ 41 billion by 2020.

Market Restraints

The coffee market in U.S. is expected to act as a restraining factor to the pearl milk tea market. The coffee market is accounted to be US$ 85 billion in 2015 and has the first position in coffee consumption while it is ranked fourth in tea consumption according to United States Department of Agriculture (USDA) in 2015. Other restraining factor of the pearl milk tea market is the sugar and calorie content present in pearl milk tea. According to the World Health Organization (WHO), the total caloric and the sugar content of pearl milk tea drinks is alarming with respect to overweight and obesity rates in Asian youth. However the consumption can done in a healthier ways as suggested by WHO, the pearl milk tea without the milk, lower sugar content, or excluding the additional ingredients such as tapioca, jelly, and pudding. These alternatives will reduce the total caloric content value of the pearl milk tea beverages, which would fit the USDA Dietary Guidelines for added sugars beverages.

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Market Outlook

Pearl tea acts as an antioxidant due to the presence of polyphenols, which helps to slow the oxidation damage to the body such as it helps to prevent the damage of fatty tissue, DNA, and proteins in our body. Among ingredients, the green tea segment is expected to gain high traction, as green tea acts as a better antioxidant than the other ingredients.

Some of the major players in the pearl milk tea market include Bubble Tea House Company, Bubblelicious Tea, Lollicup USA Inc., Ten Ren's Tea Time, Boba Box Limited, Sumos Sdn Bhd, Gong Cha USA, Boba Tea Company, Troika JC. (Qbubble), and Fokus Inc.

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