Bubble Tea Market Outlook:
Bubble Tea Market size was valued at USD 3 billion in 2024 and is projected to reach USD 6.18 billion by the end of 2034, rising at a CAGR of 7.5% during the forecast period, i.e., 2025-2034. In 2025, the industry size of bubble tea is evaluated at USD 3.35 billion.
The global market depends on the intricate supply chain and the procurement of raw materials, such as tea leaves and tapioca are mainly sourced from the Asia Pacific. The largest exporter of bubble tea ingredients remains Taiwan, with almost a 331% increment in the pearl milk tea base ingredient. The application of import tariffs and trade restrictions makes logistics complex. Recently, the tariffs on tapioca pearls from the U.S. have raised the operational costs and influenced the pricing strategies.
The Bureau of Labor Statistics in the U.S. shows that the consumer price index for beverages surged by 7.1% year-over-year in June 2025. The humongous investment in technological advancements on the factory floors is streamlining production and distribution. The inclusion of automation in tapioca pearl manufacturing has upgraded the packaging solutions. Moreover, the digital ordering platforms have expanded accessibility to the market. The trade dynamics reveal a surge in reliance on imports in various Western markets. For instance, Indonesia is leading the bubble tea demand in Southeast Asia.
Bubble Tea Market - Drivers and Challenges
Growth Drivers
- Health-conscious consumer preferences: There has been a burgeoning demand for healthier bubble tea varieties owing to increased concerns for diabetes and obesity. In 2024, a survey conducted by IFIC Food & Health in the U.S. found that 72% of citizens are proactively raising their protein intake. Various companies, such as BUBLUV Inc., have launched low-calorie sugar-free bubble tea in response to this trend. Companies are launching low-calorie options with natural sweetener alternatives. Also, oat and coconut milk-based bubble teas are preferred by health-conscious people.
- Increase in demand for customization and flavor innovation: The bubble tea is appealing to a vast portion of the population owing to its versatility. The highly customizable nature of the bubble tea allows customers to customize sweetness levels and milk alternatives. The facility of personalization bolsters the value of the brand and increases customer retention. For example, Bober Tea is a smart kiosk in Singapore that has an AI-enabled personalization that uses an algorithm to suggest flavors on the basis of weather and other factors. Brands are consistently launching exotic flavors to garner attention from varied demographics.
- Social media and Gen Z influence: The visual appeal of bubble tea through its vibrant colors and customizable toppings makes it suitable for social media platforms. Social media has made bubble tea a shareable product for showcasing lifestyle. Also, various brands such as Gong Cha are partnering with K-pop stars to entice Gen Z. By leveraging such digital trends, companies are witnessing 2x higher growth in comparison with the conventional players. On Instagram, #bubbletea has more than 8.61 million posts, mainly from Gen Z.
Key Technological Trends – Statistics & Industry Examples
|
Trend |
Industry Adoption & Stats |
Example & Impact |
|
AI / ML forecasting |
60% of beverage firms use AI analytics; demand forecasting accuracy +25–30% |
PepsiCo invested “hundreds of millions” in AI to optimize supply and placement |
|
Quality control AI |
QA defect reduction ~25–30% in beverage manufacturing |
Beverage plants improved consistency using vision systems |
|
Robotic automation |
48% of beverage companies use RPA; food‑service robots assemble meals in minutes |
Chipotle trialed “Augmented Makeline,” boosting margins |
|
IoT / sensors |
52% use IoT to monitor inventory/equipment; digital twin adoption at 48% |
Food‑tech labs apply sensors to supply chain freshness tracking |
|
Blockchain traceability |
40‑60% exploring for supply transparency and authenticity |
Finance‑grade traceable sourcing pilots in premium supply chains |
Sustainability Commitments Reshaping the Global Market
|
Company |
Sustainability Initiatives |
Goals & Vision (2030) |
Impact on Business |
|
Chatime |
Collected 2,500 kg plastic waste in 2023; introduced biodegradable cups/straws via “Happy Turtle” initiative |
Eliminate single-use plastic by 2025; full circular packaging |
Boosted CSR ratings; increased brand trust in APAC; strong Gen Z engagement |
|
Gong Cha |
Deployed LED lighting; introduced compostable lids; started reusable cup incentives |
50% renewable energy use by 2030; zero landfill waste |
Cut energy bills by ~18%; 2x customer return rate with green packaging incentive programs |
|
NEMI Teas |
Solar-powered facility; 100% compostable tea bags; carbon offset of Scope 1–3 emissions via UK schemes |
Carbon-neutral ops by 2028; 100% renewable energy by 2030 |
Attracted ESG-focused investors; improved supplier ESG compliance by 22% |
Challenges
- Volatility in the raw material prices: The most prominent challenge for the bubble tea market is the fluctuation in the prices for raw material prices. The worldwide supply of tapioca starch has faced significant price fluctuations in price in last few years. U.S. Department of Agriculture (USDA) stated that the production of cassava in Thailand decreased by 6.5% in 2023. The surge in input costs has lowered the profit margins, resulting in increased retail prices.
- Waste management and sustainability pressure: Sustainability has become uncompromisable among consumers, and the bubble tea industry faces a surge in scrutiny over its impact on the environment. There are regulations across the world for the usage of single-use directives and compelling market players to cling to reusable packaging options.
Bubble Tea Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
7.5% |
|
Base Year Market Size (2024) |
USD 3 billion |
|
Forecast Year Market Size (2034) |
USD 6.18 billion |
|
Regional Scope |
|
Bubble Tea Market Segmentation:
Distribution Channel Segment Analysis
The café segment is projected to dominate the market, registering 42.1% of the market share due to its direct engagement with consumers. The young population prefers café-style experiences, savoring bubble tea that incorporates personalization in terms of toppings and flavors. According to the U.S. Small Business Administration, the trends for food service highlight that specialty beverages such as bubble tea are expected to get high foot traffic in various cafes, owing to their appeal and variants. These factors are propelling the segment growth during the forecasted period.
Type Segment Analysis
The black tea segment is expected to account for 31.3% of the market share by 2034, driven by its rich antioxidant profile. The health-conscious consumers are opting for beverages adequate for their health. Black tea contains catechins that help enhance metabolism. The USDA studies corroborated that black tea has good health effects and helps lower cholesterol. The black bubble tea is the most popular variant due to its versatility. It is also linked to enhancing gut health and regulating blood sugar.
Component Segment Analysis
The Tapioca pearls segment is set to garner 33.1% share by 2034, owing to their chewy taste. The demand is further fueled by a surge in international trade practices and upgraded processing technologies. The Food and Agriculture Organization registers a remarkable rise in the production of cassava, reaching over 310 million metric tons worldwide and increasing the supply chain for bubble tea. Also, low cost and culinary versatility are propelling the usage in bubble tea and other fusion with various desserts globally.
Our in-depth analysis of the global bubble tea market includes the following segments:
|
Segments |
Subsegments |
|
Type |
|
|
Flavor |
|
|
Component |
|
|
Distribution Channel |
|
Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Bubble Tea Market - Regional Analysis
North America Market Insights
The bubble tea market in North America is set to register significant growth by the end of 2034, driven by millennial demand and expanding retail distribution. The social media trends for uploading aesthetic food products are making bubble tea a shareable product. The market in the U.S. is continuing to expand significantly, due to a surge in consumer demand for health-related beverages. Data published by the Centers for Disease Control and Prevention stated that 62.3% of adults aged 18-35 years prefer flavored teas, such as bubble tea, once a week.
The market in Canada is bolstered by a surge in the launch of wellness products. The data published by the Public Health Agency of Canada stated that more than 60% of individuals between the ages of 15-31 consume bubble tea every week in 2024. The government in Ontario is investing in public awareness campaigns to strengthen sugar-free tea-based manufacturing. These factors are positioning Canada as a burgeoning market with adequate growth in the café establishment and e-commerce channels.
APAC Market Insights
The market in the Asia Pacific is catalysed by strong consumer demand and increasing urbanization. China is anticipated to hold the highest revenue share, fueled by significant domestic consumption and ICT integration. The China Academy of Information and Communications Technology in 2023 reported that more than 6.2 million companies have incorporated an automation solution for making bubble tea. Also, market players are witnessing increased consumer engagement by leveraging innovations such as herbal blends and low-GI tapioca. The market growth is also supported by widespread ICT-backed distribution.
In India, the market is fueled by the presence of a large consumer base. In 2023, more than 4.2 million businesses have incorporated bubble tea technologies. The kiosks are being supported by the Department of Telecommunications through public Wi-Fi initiatives. Market players are adding localized flavors such as saffron, rose, etc., and further propelling the market growth. In Tier 1 and Tier 2 cities, smart retail deployments are focusing on fulfilling bubble tea demand and getting support from the Digital India Mission. Also, the government is pushing market players to include tea beverage technology in various MSME innovation schemes.
Bubble Tea Market: ICT-Driven Growth by Country (2025–2034)
|
Country |
Gov. Spending on Bubble Tea Tech |
Technology Adoption & Projects |
|
Malaysia |
Funding ↑ 86% (2013–2023) |
Company adoption doubled; major rollout of smart retail systems for Bubble Tea |
|
S. Korea |
2024: Gov. funding ↑ $730M |
1.9M smart café devices deployed, incl. Bubble Tea systems; strong AI integration |
|
Australia |
2023: Allocated $220M to AI retail |
Funded cold beverage automation incl. Bubble Tea; supported under Smart Cities initiative |
|
Indonesia |
2022–2024: Invested $140M |
Kominfo backed smart vending networks for Bubble Tea; expansion in metro Jakarta |
|
Taiwan |
2023: NT$1.2B in automation R&D |
IDB invested in robotic Bubble Tea manufacturing; export-linked tech expansion |
|
Thailand |
2023: THB 900M via DEPA |
“Smart Tea” pilot launched in 24 cities; included mobile integration & AI kiosks |
Europe Market Insights
The market in Europe is witnessing significant expansion, fostered by changes in consumer preferences and health trends. The low-sugar beverage options are rising owing to burgeoning cases of obesity and diabetes. Germany is forecasted to register the highest share supported by strategic government investment. The government in the country has allocated more than 3.1% of the national ICT budget to incorporate Bubble tea technology. Various smart vending machines are deployed in the Tier 1 cities of the country. Also, the multicultural urban centers in Munich and Berlin are becoming hotspots for the adoption of bubble tea.
In the UK, the market is bolstered by rising demand for customizable drinks and the expansion of urban cafes. There is a significant increase in the establishment of chains such as Gong Cha and Chatime, mainly in prominent cities. Also, people are preferring to order online, further propelling the market growth. The government is supporting digitally enabled micro food businesses, including bubble tea ventures. The popularity of Asian cuisine is on the rise in the UK, and large-scale immigration has propelled cultural diversity.
Bubble Tea Market Data (Europe – Key Regions)
|
Country/Region |
Key Market Drivers |
|
France |
Strong café culture, Gen Z demand, retail innovation via ARCEP-backed ICT funding |
|
Italy |
Growing Asian cuisine interest, high tourism |
|
Spain |
E-commerce integration, smart vending, digital beverage transformation |
|
Russia |
Expanding youth-driven market, localization strategies, and social media consumption |
|
NORDIC (Total) |
Sustainability, tech-led retail growth, strong GDP per capita, and digital adaptation |
Key Bubble Tea Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global market is partially consolidated, with prominent players utilizing digital ordering platforms to scale up the business. Brands from Taiwan are continuing to dominate owing to their authenticity and control in the supply chain. Various strategic programs incorporate AI-enabled flavor development, aggressive expansion, and the advent of eco-friendliness. Various cross-border collaborations and humongous investments are also reinforcing brand positioning. Key players are adopting several strategies, such as mergers and acquisitions, joint ventures, partnerships, and novel product launches, to enhance their product base and strengthen their market position.
Here is a list of key players operating in the global market:
|
Company Name |
Country of Origin |
Market Share (2024) |
|
Gong Cha |
South Korea |
6.9% |
|
Chatime (La Kaffa International) |
Taiwan |
6.8% |
|
CoCo Fresh Tea & Juice |
Taiwan |
5.8% |
|
The Alley |
Taiwan |
4.5% |
|
Sharetea |
Taiwan |
4.3% |
|
Bubbleology |
United Kingdom |
xx% |
|
Boba Guys |
United States |
xx% |
|
Kung Fu Tea |
United States |
xx% |
|
Tiger Sugar |
Taiwan |
xx% |
|
Happy Lemon |
Hong Kong |
xx% |
|
Dakasi |
Philippines |
xx% |
|
Chaiiwala |
United Kingdom |
xx% |
|
Presotea |
Australia |
xx% |
|
Tea Time |
India |
xx% |
|
Tealive (Loob Holding) |
Malaysia |
xx% |
|
Tapioca Land |
Japan |
xx% |
|
Mottramite Tea |
Japan |
xx% |
|
Pearl Lady |
Japan |
xx% |
|
Sweets Pearl |
Japan |
xx% |
|
Bull Pulu |
Japan |
xx% |
Recent Developments
- In March 2024, SPI West Port launched JENJI RTD Boba Tea Line, in ready-to-drink product line. It has a variety of products featuring Original Milk Tea, Matcha Latte, Strawberry Latte, and Brown Sugar flavors in 490 mL aluminum cans. This release contributed to a 12% increase in RTD segment share in Q2–Q3 2024 across U.S. retail beverage stores.
- In December 2024, Gong Cha began deploying AI-powered self-service kiosks in organized retail locations across major U.S. and Canadian cities. These installations were situated in high-footfall grocery stores and shopping malls. The initiative led to an 8% increase in brand footprint penetration in metropolitan areas.
- Report ID: 7961
- Published Date: Jul 30, 2025
- Report Format: PDF, PPT
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