The size of the global bubble food & beverage market is expected to grow from USD 5.05 billion in 2024 to USD 7.85 billion by 2029, growing at a CAGR of 9.23% from 2024 to 2029.
In the last few years, the bubble food & beverages market has witnessed significant growth. The industry gained a major spotlight as a desirable option for customers wanting healthier substitutes to traditional drinks and snacks. This pattern of the market is influenced by the surging consumption of handy boba-based beverages and snacks which propels the industry’s development. Especially rapid economic prosperity in conjunction with Generation Z and millennials, this trend shows a transition to a more health-aware and personalised dietary choice.
Apart from this, in Britain, the younger generation is producing special boba creations which have become progressively common in the United Kingdom. Besides this, the overall expenditure in commencing a bubble tea shop in the United States or Europe is between 20000 and 50000 dollars against 100000 to 500000 dollars needed for a traditional cafe or fast-food setup.
This has even crossed the widespread recognition of standard carbonated beverages. The market is majorly dominated by bubble tea across different regions and its attraction is that it offers a broad range of flavourful products and also satisfies the health requirements of various customers.
Another factor boosting the market growth rate is the swift expansion of e-commerce. The increase in digital networks has increased the penetration of e-commerce channels and platforms which had an important role in the food and beverage sector. The smooth approachability and convenience provided by digital platforms are propelling a major transition in consumer preference and buying patterns, influencing the way cooking items, involving bubble food and beverages, are procured and appreciated.
Rising influencer and social media promotions are also contributing to the expansion of the market. The impact of social media and the strong reach of influencer marketing is one of the primary factors behind the customer’s pattern. The quick expansion of influencers and platforms committed to cooking experiences has considerably augmented the recognition of bubble food and beverages, which are also attractive goods by seeing.
Even though bubble snacks and beverages are allegedly said to reduce ageing, improve immunity, and raise mental consciousness, there are worries regarding how adding flavours and exorbitant sugar to bubble tea and drinks can transform them into unhealthy. Various nutrition research recommended that bubble or boba tea beverages are associated with the bigger group of sugar‐sweetened beverages (SSB) due to these drinks are often sugared with high‐fructose corn syrup (HFCS). Eating greater sugar quantities has been connected to severe medical problems such as cognitive decline, cardiovascular disease, non-alcoholic fatty liver disease (NAFLD), obesity and some types of cancer, which obstruct or constrain the consumption of bubble foods and beverages.
Along with this, the unstable oil and gas industry worldwide makes it an appropriate business option for these regions. There's also a major variation in revenue, with standard or conventional restaurants struggling with 75 per cent revenue, while bubble tea shores have just 30 to 40 per cent turnover. With a small team of two to three managing preparation and other services, this led to substantial cost conservation. Also, because of reduced lease and labour expenses, the net profit rate surpassed 25 per cent and bubble food & beverage arose as an intelligent investment option in the transforming dynamics of health-oriented and affordable dining.
The extensive access to other caffeinated beverages such as coffee & preferences in its consumption in Western nations prove to be a hurdle to the escalating demand for similar tea as a unique drink. The need for coffee has surged as a consequence of expanding application as a performance enhancer and better handiness as a ready-to-drink to adapt to customer’s fast-paced lifestyles. The abundance of innovative coffees, involving effervescent canned coffee, nitro cold brew and cold brew, are approachable in a wide variety of practical coffee types.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
9.23% |
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Segments Covered |
By Product, Source, And Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis; Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Shahia Foods, Happy Lemon, Tiger Sugar, Bubble Tea House Co., Chatime, Yummy Town (Cayman) Holdings Corp., Coco Fresh Tea & Juice, The Inspire Food Co. B.V., Gong Cha Global Ltd., Sharetea, J Way Foods, Kung Fu Tea, and Kuaikeli Enterprise Co. Ltd. |
The bubble tea segment is the most prevalent category of the bubble food & beverages market and is expected to remain in this course during the forecast period. Over the years, the segments have broadened considerably, providing a varied range of choices, consisting of tieguanyin, high-mountain oolong, green tea and jasmine. In addition, it has gained popularity among Generation Z due to its strong flavours and different offerings. Similarly, the prosperity of the United States bubble food and beverage industry players such as Kung Fu Tea, which started in New York and grew country-wide, shows the international achievement of brands including South Korea’s Gong Cha. This market pattern is also visible in China, with players such as HEYTEA commanding the revival of bubble tea, called zhenzhu naicha.
The tapioca-based segment is leading the bubble food & beverages market. This can be attributed to the rise of tapioca starch which is due to the efficacy of cassava extracts in keeping the blood sugar stable, stopping constipation and lowering cholesterol. Presently, tapioca or cassava root is paving the course as a big source of altered starch because of its scentless and bland flavour, organically gluten-free and non-allergenic qualities, competitive industry cost, plenty, high manufacturing rate and year-round access. Hence, the segment’s market size is increasing every year.
North America is spearheading the bubble foods and beverages market and is believed to continue its growth trajectory with a slight temporary dip in consumption or spending on these products due to the unstable global economy and looming financial volatility. In the region, the United States is leading with a large consumer base of fast food and beverages. Europe is another major bubble foods & beverages market with escalating demand for unique drinks and consumables. The United Kingdom in the region has surfaced as a special industry because boba stores appear to be rising overnight close to the bustling tube station, university cafes and fashionable high streets. Franchises consisting of T4, Mooboo, Bubbleology and Gong cha are quickly enlarging their footprint. Huge queues of excited and passionate consumers confirm the drink’s gaining traction, with individuals publishing on social media. For instance, in TikTok, there are 8.3 billion views on the hashtag “BubbleTea”. Asia Pacific is a lucrative industry for the bubble food & beverages market. Moreover, owing to the high density of the young generation and the income growth of and standard of living of the middle-class people with increased availability of high-speed internet and rapid digitalisation have directly and indirectly benefited the APAC market size. China is a key player in the bubble food & beverage industry with a notable market share. It was valued around 20 billion dollars in 2023. Recently, in January 2024, two famous bubble tea Chinese companies namely Gumming Holdings and Mixue Group decided and applied to issue an initial public offer (IPO) in Hong Kong. The Mixue desires to get 500 million to 1 billion dollars and on the other hand, Gumming is targeting to raise 300 million to 500 million dollars. Despite the country's facing elevated economic ambiguity and reduced customer trust, cost-effective treats like heading to the theatre or cheap food and drinks, are looked at as glowing spots.
Major players in the global bubble food and beverages market include Shahia Foods, Happy Lemon, Tiger Sugar, Bubble Tea House Co., Chatime, Yummy Town (Cayman) Holdings Corp., Coco Fresh Tea & Juice, The Inspire Food Co. B.V., Gong Cha Global Ltd., Sharetea, J Way Foods, Kung Fu Tea, and Kuaikeli Enterprise Co. Ltd.
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