by Pearl Milk Tea, popularly known as “bubble tea” or “boba tea”, is a tea-based drink that originated in Taiwan in the 1980s. It consists of tea mixed with chewy tapioca pearls and milk. It is typically served with brightly colored syrups and fruit jelly. The innovative flavors introduced by market players have made pearl milk tea popular among young consumers globally. Its uniqueness has led to new product innovations such as fruit-flavored teas and customized beverages made to specific tastes. It has gained popularity as a convenient on-the-go drink option.
The global Pearl Milk Tea Market is estimated to be valued at US$ 46.86 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the pearl milk tea market is the introduction of new flavors. Market players are innovating flavors to attract new customers and expand market reach. Exotic flavors such as Thai tea, taro, honeydew, passion fruit, almond, and matcha have been added. Combination flavors are also trending. Regional specialties are also being incorporated – for example Japanese flavors with cherry blossom and green tea. Manufacturers are experimenting with local ingredients to cater to evolving tastes. This wide variety of innovative flavors resonates well with younger consumers and drives the market growth.
Porter’s Analysis
Threat of new entrants: Low capital requirements and lack of proprietary technology pose a low threat of new entrants in the pearl milk tea market. However, established brands and customer loyalty act as a barrier.
Bargaining power of buyers: The bargaining power of buyers is moderate as pearl milk tea has several substitutes. However, brand loyalty and unique taste profile retain customers.
Bargaining power of suppliers: The bargaining power of suppliers is low due to low switching costs and easy availability of raw materials. Suppliers have negligible influence on prices in the global market.
Threat of new substitutes: The threat of new substitutes is moderate as fruit/herbal tea and coffee pose competition. However, pearl milk tea’s unique combination of ingredients make it difficult to replace.
Competitive rivalry: Intense due to the presence of established brands and private label products. Companies compete on basis of taste, innovation, and marketing.
Key Takeaways
The Global Pearl Milk Tea Market Size was valued at US$ 46.86 Bn in 2023 and is expected to reach US$ 71.48 Bn by 2030, exhibiting a CAGR of 6.2% during the forecast period. Growth of the young adult demographic and rising health-consciousness among consumers is driving the adoption of pearl milk tea.
The Asia Pacific region dominates the pearl milk tea market, accounting for nearly 60% share in 2023. China, Taiwan, Japan, and Southeast Asian countries have established pearl milk tea as a popular beverage. Ease of availability, innovative flavors, and affordable prices have boosted market penetration.
Key players operating in the pearl milk tea market are Bubble Tea Supply Co., Gong Cha, Lollicup USA Inc., Fokus Inc., CoCo Fresh, and Chatime. These companies compete on the basis of flavors, brand recognition, and adapting to latest beverage trends through product innovation. Some global players are also expanding their footprint through franchising and online channels.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
