Bubble Tea Market By Product Type (Black Tea, Green Tea, Oolong Tea, Others), By Flavor (Fruit, Taro, Strawberry, Classic, Coffee), By Distribution Channel (Online, Offline), By Region, By Competition Forecast & Opportunities 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.96 Billion
CAGR (2026-2031)	7.47%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 4.56 Billion

Market Overview

The Global Bubble Tea Market will grow from USD 2.96 Billion in 2025 to USD 4.56 Billion by 2031 at a 7.47% CAGR. The Global Bubble Tea Market comprises the trade of prepared tea-based beverages originating from Taiwan, typically characterized by the combination of brewed tea, milk or fruit flavorings, and texturized toppings such as tapioca pearls. The industry’s expansion is fundamentally supported by the increasing global demand for customizable, non-alcoholic functional drinks and the proliferation of specialized quick-service retail outlets that cater to on-the-go consumption. These structural drivers are distinct from transient market trends, as they represent a permanent shift in consumer preference toward experiential and personalized beverage options across younger demographics.

However, the sector faces a significant impediment regarding health concerns related to the high sugar and caloric content of tapioca pearls, which could limit market penetration among health-conscious consumer segments. Despite this challenge, the industry continues to demonstrate substantial economic scale in key regions. According to the China Chain Store and Franchise Association, in 2025, the market size of the new-style tea beverage sector was estimated to surpass 200 billion yuan, underscoring the robust commercial viability of the category within its largest market.

Key Market Drivers

Rapid expansion of international franchise networks and store footprints acts as a primary engine for market scalability, allowing brands to penetrate new geographical regions efficiently. By leveraging standardized operational models and supply chain logistics, major industry players can rapidly multiply their point-of-sale locations, thereby increasing consumer accessibility and brand visibility globally. This aggressive scaling strategy is evident in the operational footprints of leading market incumbents who utilize franchising to secure dominance in both domestic and overseas territories. According to Mixue Group, January 2024, in the 'Application Proof', the company reported establishing a vast network of over 36,000 stores worldwide, highlighting the immense physical reach and distribution capability achievable through the franchise model.

Continuous product innovation and diverse menu customization serve as critical differentiators that sustain consumer engagement in a highly competitive landscape. Brands are increasingly investing in product development to offer health-centric variants, fresh fruit integration, and customizable sugar levels, which appeals to evolving consumer preferences for higher quality and functional beverages. This strategic focus on premiumization and menu diversity translates directly into robust financial performance for adaptive brands. According to Nayuki Holdings Limited, March 2024, in the 'Annual Report 2023', the group achieved a revenue of approximately RMB 5,164.2 million, driven by the optimization of its store network and product lineup. Furthermore, the collective impact of these expansion and innovation strategies generates significant economic value; according to Sichuan Baicha Baidao Industrial Co., Ltd., April 2024, in the 'Prospectus', the total retail sales value of the company's tea drinks reached RMB 16.9 billion in 2023, reflecting the substantial liquidity circulating within the sector.

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Key Market Challenges

The high sugar and caloric content associated with ingredients like tapioca pearls constitutes a substantial impediment to the growth of the Global Bubble Tea Market. As public awareness regarding the adverse effects of excessive sugar intake rises, a considerable segment of health-conscious consumers is increasingly reluctant to engage with the category. This hesitation restricts the market’s ability to expand beyond its core indulgent user base, as the perceived lack of nutritional value acts as a deterrent for demographic groups prioritizing weight management and functional diets. Consequently, the reliance on traditional, calorie-dense formulations limits the frequency of repeat purchases and hampers broader market penetration.

This shift in consumer behavior is quantifiable and reflects a structural friction against the industry's expansion. According to the International Food Information Council, in 2024, 66% of consumers reported trying to limit or avoid sugars in their diet, marking a distinct increase in avoidance behavior compared to prior years. This statistical evidence highlights a direct conflict between the market's staple offerings and evolving dietary preferences, indicating that the industry’s potential for volume growth is being actively constrained by this widespread nutritional scrutiny.

Key Market Trends

The integration of robotic automation and smart service technologies is fundamentally reshaping the operational infrastructure of the bubble tea market. Major brands are increasingly deploying proprietary automated tea-making devices and digital management systems to standardize product quality and mitigate rising labor costs. This technological shift allows for precise control over brewing parameters and ingredient ratios, which is critical for maintaining brand integrity across rapidly scaling franchise networks. The commitment to this structural modernization is evident in the capital allocation strategies of leading industry players. According to Sichuan Baicha Baidao Industrial Co., Ltd., April 2024, in the 'Prospectus', the company allocated approximately 20% of the net proceeds from its global offering specifically to developing digitalization capabilities and engaging professional talents to support its smart store operations.

Simultaneously, there is a distinct strategic pivot toward the expansion of Ready-to-Drink (RTD) retail and supermarket offerings, allowing traditional fresh-tea brands to capture consumption occasions outside of physical teahouses. By leveraging partnerships with convenience store chains and FMCG distributors, bubble tea franchises are commoditizing their signature flavors into shelf-stable formats to secure new revenue streams and enhance brand ubiquity. This trend bridges the gap between premium on-premise experiences and mass-market accessibility, effectively transforming the beverage from a destination purchase to a convenience product. A notable instance of this channel diversification occurred when Gong Cha Japan, June 2024, in a 'Press Release', announced the launch of its first-ever PET bottle tea range, including Brown Sugar Oolong Milk Tea, exclusively across 20,000 7-Eleven stores nationwide.

Segmental Insights

The Online segment is identified as the fastest-growing category within the Global Bubble Tea Market, primarily attributed to the widespread proliferation of food delivery platforms and mobile applications. This rapid expansion is fueled by evolving consumer preferences for convenience and the increasing efficacy of third-party logistics networks that ensure timely home delivery. Furthermore, bubble tea vendors are actively optimizing digital storefronts to capture a broader demographic that favors contactless transactions. This structural shift toward digital procurement creates a robust environment for the sustained development of online sales channels.

Regional Insights

North America has emerged as a leading region in the global bubble tea market, driven primarily by high consumer purchasing power and a marked shift toward premium, personalized beverages. The region’s dominance is anchored in a robust café culture that facilitates the rapid expansion of specialized franchise chains and innovative product offerings. Furthermore, the growing preference for healthier, tea-based alternatives to carbonated soft drinks among younger demographics accelerates market adoption. Stringent oversight by regulatory bodies, such as the U.S. Food and Drug Administration (FDA), ensures rigorous ingredient safety standards, thereby enhancing consumer trust and stabilizing long-term industry growth.

Recent Developments

• In April 2025, Gong cha announced a limited-time collaboration with the global character brand LINE FRIENDS to launch a themed collection in the United States. The partnership introduced a series of new beverages featuring "mini pearls," a smaller and softer variation of the brand's signature tapioca topping, designed to complement the playful nature of the "minini" characters. Alongside the exclusive drinks, the campaign included collectible merchandise such as keychains and tumblers to drive customer engagement. This initiative highlighted the company's focus on product innovation and cross-industry partnerships to attract younger consumers and enhance the in-store experience.
• In February 2025, the master franchisee for Chatime in Canada disclosed a new expansion partnership with Walmart to open bubble tea locations within the retailer's supercentres. The collaboration focused on establishing outlets in high-traffic retail hubs, beginning with locations in Edmonton and expanding to other regions across the country. This strategic move was intended to capture a broader demographic, including families and young professionals who frequent the large-scale retailer. The company viewed this alliance as a key driver for its growth strategy, aiming to increase its store count significantly by positioning its services in convenient, everyday shopping environments.
• In September 2024, Heytea established a cultural partnership with the Royal Ballet and Opera in London, marking its first major collaboration of this nature in the United Kingdom. The initiative involved the launch of a pop-up store at the historic Royal Opera House in Covent Garden, where visitors could purchase limited-edition tea blends inspired by specific theatrical performances. This collaboration was designed to broaden the brand's appeal to international audiences by integrating its modern tea offerings with established Western cultural institutions. The project underscored the company's strategy to refine its global brand image while expanding its physical footprint in the European market.
• In July 2024, Kung Fu Tea announced a strategic licensing agreement with Secret Creamery to introduce a new line of boba-flavored ice cream products. This collaboration aimed to extend the brand's popular bubble tea flavors, such as Milk Tea, Taro Cookies & Cream, and Rosehip Lemonade, into the frozen dessert aisle. The partnership leveraged the manufacturing expertise of the Las Vegas-based creamery to create small-batch, handcrafted ice creams that incorporated chewy ingredients like mochi bits. This product launch represented a significant expansion of the company's presence beyond beverage shops and into the retail consumer packaged goods sector.

Key Market Players

• Bobabox Ltd.
• Bubble Tea House Company
• Gong Cha
• ChaTime
• Fokus, Inc.
• Lollicup USA, Inc.
• Bubble Tea Supply, Inc.
• Ten Ren's Tea Time
• T Bun International
• Troika JC

By Product Type	By Flavor	By Distribution Channel	By Region
Black Tea Green Tea Oolong Tea Others	Fruit Taro Strawberry Classic Coffee	Online Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bubble Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Bubble Tea Market, By Product Type:

• Black Tea
• Green Tea
• Oolong Tea
• Others

• Bubble Tea Market, By Flavor:

• Fruit
• Taro
• Strawberry
• Classic
• Coffee

• Bubble Tea Market, By Distribution Channel:

• Online
• Offline

• Bubble Tea Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE