Arlina Arshad. Expansion of franchise stores, investments, fundings, and new product launches are the key strategies of the bubble tea market players. However, bubble tea has hidden ingredients such as sugar, sweeteners and artificial flavourings. Bubble tea is known for its sweet taste. Bubble tea is a beverage originating from Taiwan comprising tea with fruit syrup or milk added, and then shaken. Fruit Flavor Segment is Dominating Backed by High Consumer Preference. According to the study, there are three underlying fundamentals to building a successful bubble tea business. The emergence of Chinese players who are good at branding, product/supply chain and cost management could pose an increasing challenge to existing local players. "(This makes) it a great entry point for premium brands, Momentum Works said in a news release on Tuesday (Aug 16), adding that there are currently more than 60 active brands of bubble tea chains. 12. The Straits Times, p. 10. Unapproved additive found in 11 food products. You only have access to basic statistics. Plasticisers are discovered in two Taiwanese fruit juice brands, resulting in suspension of the brands.2013: Maleic acid found in Taiwanese starch products, affecting the pearl supplies of certain bubble tea chains.AuthorJan YapReferences1. Whats your favorite bubble tea base to start with? Aqilah, a consumer in Malaysia, used to buy bubble tea at least twice a week. We use cookies to enhance your experience. It comes with the additional cost of $2500.00 contact sales. "Number of bubble tea outlets in Singapore in 2019, by brand." Retrieved from NewspaperSG.8. There was a 3,000% increase in the amount of bubble tea orders in Southeast Asia in 2018. Although there are plenty of bubble tea flavors to choose from, fruit teas tend to be the most popular. Young people between ages 20 and 29 are interested in bubble tea. The bubble tea industry is enormous and accounts for one of the fastest-growing food markets in the world today. According to Dr Tan Wee Yong, a consultant physician in Malaysia, it is recommended for a normal healthy adult to take no more than eight teaspoons of sugar a day, while a childs daily sugar intake should not be more than five teaspoons. A. In a recent Grab article titled Bubble Tea Craze in GrabFood, the ride-hailing giant highlighted Southeast Asias growing obsession with the drink. "Important Factors When Considering a Bubble Tea Purchase in Singapore in 2020. Nonetheless, the tapioca balls are hard for elderly people to digest and can cause indigestion. Learn more about how Statista can support your business. Although there are plenty of bubble tea flavors to choose from, fruit teas tend to be the most popular. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Which region held the highest share in the global market? The bubble tea market in China is estimated to have an annual turnover of US$20 billion, saturating and hyper competitive.. The beverage has experienced a few resurgences in popularity, such as in 2007 and 2011.11 There were more than 10 chains and 500 outlets selling bubble tea in 2011. These measures are part of efforts to help consumers to make more informed, healthier choices,Health Minister Ong Ye Kung said. under and CEO Li Jianggan said the bubble tea market is fragmented, with enough room for larger and smaller players to co-exist and flourish. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Statista. South America is anticipated to grow in terms of sales volume of the products in the coming years. It should be no surprise then that sugar is a primary ingredient in the drink. Get detailed COVID-19 impact analysis on the Bubble Tea Market. For instance, in April 2020, a bubble tea company Chatime launched oat milk-based tea, such as Grass Jelly Roasted Milk Tea and Chatime Pearl Milk Tea, for lactose intolerant consumers. Bubble tea also contains high sugar content, according to a study conducted by students at the Applied Food Science and Nutrition diploma course at the Temasek Polytechnic in Singapore. Access to this and all other statistics on 80,000 topics from, Show sources information But did you know that there are six different types of bubble tea? Due to increasing consumer demand, GrabFood now has close to 4,000 bubble tea outlets in their network, which is a 200 percent growth in outlets for the region. In Malaysia, Columbia Asia dietitian, Kong Woan Fei told local media that depending on the sugar used, one cup of bubble tea can contain at least 370 calories. Due to intense competition and price wars, bubble tea lost its popularity by 2003 and many shops folded. Retrieved from NewspaperSG.10. February 11, 2020. Originally created in Taiwan in the 1980s, bubble tea has quickly exploded in popularity. CXOs from the leading companies perceive that product innovation, development of newer flavor, and use of organic preservatives & color in the manufacturing process are the major areas of growth for the bubble tea market. Pandemic disrupted the entire world and affected many industries. We value them as a research company worthy of building long-term relationships., Well done Fortune Business Insights! Book your free consultation and let our research experts help you with your needs/problems. Bubble tea, first introduced in Taiwan in the 1980s has done on to become a global phenomenon made popular by Internet foodies. Jointly conducted by venture outfit Momentum Works and digital payments solution firm qlub, the report also found thatthe average price of bubble tea in Singapore is double that of other countries in the region. To make the bubbles, tapioca is cooked in hot water along with sugar, for up to three hours. 2023 Allied Market Research. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive, Please pass on our sincere thanks to the whole team at Fortune Business Insights. Moreover, as per researches conducted by different reputed organizations, tea is proven to prevent different type of cancers, lower cholesterol, help boost immunity, facilitate weight loss, and prevent neurological diseases.This indicates that the health benefits associated with bubble tea are anticipated to drive the overall market. But the story of bubble tea in Singapore dates back almost three decades. In a survey of Singaporean bubble tea consumers in 2020, 69 percent of respondents stated that taste was their main consideration when purchasing bubble tea, while 61 percent stated price. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. Deconstructed, bubble teas ingredients of tea, milk and brown sugar can make one assume that it is a healthy enough drink. This was found in a study which provides analyses and insights into the business dynamics behind bubble tea. (2001, August 31). Moreover, based on the study by the finance-based startup, Momentum Works and payment startup, Qlub, Indonesias bubble milk tea market ranked first among all the Southeast Asian countries. Because of the popularity and groundbreaking response from the customers, the businesses in this market typically franchise into different locations. To know how our report can help streamline your business, Speak to Analyst, Shift of Consumers toward Black Tea Due to its Health-Imparting Properties Boosts Market's Performance. Liu Han-Chieh, owner of tea house Chun Shui Tang, claims to have invented the beverage in 1983 after being inspired by seeing coffee served cold in Japan. The report segments the global bubble tea market based on base ingredient, flavors, component, and region. Arlina Arshad. However, consumers love for bubble tea wont change anytime soon, but they will vote for their favourite brands with their wallets.. This file photo shows a group of girls drinking bubble tea. In Asia, however, it is equally popular among men and women and is seen as a cultural phenomenon. The data offered to us was exactly what we were looking for. The study also highlighted that pricing is not the only factor that affects customers purchasing decisions. (1993, September 24). Get full access to all features within our Business Solutions. Because of its proximity to Taiwan, where bubble tea was created, China quickly became a fan of the sweet beverage. https://www.grandviewresearch.com/industry-analysis/bubble-tea-market, https://foodinstitute.com/focus/survey-millennials-gen-z-big-fans-of-bubble-tea/, https://youthinsight.com.au/brands/more-girls-aware-of-bubble-tea-than-boys/, https://www.cnn.com/travel/article/taiwan-bubble-tea-origins/index.html, https://www.duluthnewstribune.com/8-things-you-might-not-know-about-bubble-tea-and-other-unexpected-holidays-this-week, https://www.fortunebusinessinsights.com/industry-reports/bubble-tea-market-101564, https://www.organicfacts.net/health-benefits/herbs-and-spices/bubble-tea.html, https://chinamarketadvisor.com/what-is-boba-and-why-is-it-so-popular/, https://theaseanpost.com/article/southeast-asias-bubble-tea-craze, https://www.worldteanews.com/Insights/millennials-and-gen-z-drive-21st-century-tea-preferences, https://www.honestfoodtalks.com/bubble-tea-flavors-boba-toppings/, https://www.healthline.com/nutrition/boba-cancer, https://mtalvernia.sg/education/whats-in-my-bubble-tea/, Tea thats infused with milk or another liquid, Artificial sweetener like stevia or sugar (more on this below), Special straws designed to make the best bubbles possible. Ho, M., & Boey, D. (2001, June 29). This is likely due to its naturally sweet flavor and all of the different varieties of teas that are available. The drink became popular during the 1990s, just in time for millennials to develop a taste for it. 14. Retrieved from http://chunshuitang.com.tw/3. Bubble Tea Market Outlook (2022-2032) [324 Pages Report] The global bubble tea market is projected to have a rapid-paced CAGR of 8.8% during the forecast period. The Best Bubble Tea Brands In Singapore Photo by: Kenneth Goh The best bubble tea in Singapore Southeast Asia spent more than $5 billion on BBT last year Written by Kylie Wong & Pailin. The Tea segment in Singapore is projected to grow by 2.16% (2023-2025) resulting in a market volume of US$807.70m in 2025. . Lek, E. (2007, August 20). Green tea has shown long-term energy inducing properties and has a positive effect on the regulation of body weight. Mediacorp Pte Ltd. All rights reserved. At what CAGR is the bubble tea market projected to grow in the forecast period (2023-2030)? And if you have a sweet tooth, its SO GOOD. 16. According to the Food and Agriculture Organization (FAO) of the United Nations, Nigeria is the largest exporter of cassava at 21% of the worlds amount. Tapioca pearls are made from cassava flour, of which Nigeria is the worlds largest exporter (21%). The Straits Times, pp. This can be attributed to rise in the popularity of bubble tea with black tea as a base ingredient across the globe. Bubble tea got its name from the tapioca balls because when theyre added to the drink and shaken, the balls expand and pop, creating a popping soundor bubbling.. The Asia Pacific market held the largest share and was valued at USD 0.96 billion in 2022. Get full access to all features within our Business Solutions. If theres one thing you can count on, its that bubble tea is going to be more popular among women than men. Bubble tea has a strong market potential as it offers various types and flavors of boba teas, such as fruit flavored, black tea-based milk tea, and green jasmine, across the globe. Exactly how popular is bubble tea in Singapore? Retrieved from NewspaperSG.9. (2002, January 13). A paid subscription is required for full access. Strong dependency on Asian countries to source raw materials acts as one of the major restraints in the market. For instance, in August 2021, according to a study by the Business Times Newspaper, Southeast Asia spent around USD 3.7 billion on launching milk tea and such similar drinks, owing to the ever-growing demand from youth. Please create an employee account to be able to mark statistics as favorites. 6. Previously, tea was usually served hot, so it was considered a novel idea to cool the tea with ice and mix it with various ingredients. Nielsen. Thank you Fortune Business Insights for your efforts and prompt response, I had a great experience working with Fortune Business Insights. As a Premium user you get access to the detailed source references and background information about this statistic. Bubble tea is a popular drink among Singaporeans, and consists of a sweet flavored tea base and tapioca pearls, or "bubbles". Upgraded but still having issues? Yet, few players have managed continuous profitability at a large scale.. Such challenges cumulatively hamper the growth potential of the global market. 9. For instance, Nextrends Asia 2021 displayed a 330% surge in Taiwans exports of pearl milk teas base ingredients (raw materials, packaging and machinery, and others) compared to 2018. However, the consumption of tea is not as prominent as the popularity of coffee in South American countries such as Argentina and Brazil. Pearls dropped by some bubble tea shops. It also offers a detailed analysis of the market size and growth rate for all possible market segments. The drink is typically made from a combination of milk and tea and topped with pearls such as tapioca balls, popping boba (made from water, sugar and flavourings using a culinary process called spherification), grass jelly, fruit jelly, etc. In, DBS Group Research. These latest product ranges further act as a marketing strategy to attract a vast consumer base worldwide. Chatime, Gong Cha, Coco Fresh Tea & Juice, and Lollicup USA, Inc. are the leading players in the market. If you have an adventurous palette, we highly recommend trying as many different flavors as you can to find the one that will be your favorite! The manufacturers or entrepreneurs in the boba tea industry are venturing into the launch of their own restaurants/cafes to attract consumers and fortify their market presence. Extruding the tapioca into these small balls is difficult work. Chun Shui Tang. The Straits Times, p. 30. 7. Here is the history of bubble tea in Singapore. This service is not intended for persons residing in the E.U. Statista. A wide variety of teas, including black, green, oolong and earl grey tea are sold. Brands are also providing more health-conscious options to cater to customers, through customisable sugar levels and healthier" alternatives like brewed fresh fruit tea. Please create an employee account to be able to mark statistics as favorites. Accessed May 01, 2023. https://www.statista.com/statistics/1066726/singapore-bubble-tea-outlets-by-chain/, DBS Group Research. The Straits Times, p. 30. Consumers are shifting toward natural and organic food and beverage products, which is one of the major factors that would help in the growth of this segment in the market. Singapore stands out among the region's six key markets, as the country with the smallest population but the highest spending power. That number increases when you go up in size to 469 calories and only gets worse as you add in more toppings or extra flavors. Chewy tapioca balls or pearls are often added as well, giving rise to the need for extra large straws when drinking the beverage. Brands such as CHATIME and Bubbolitas established their first production units of boba drinks in 2009, and since then, the market has witnessed a growth trajectory. Countries such as Vietnam and Taiwan are projected to have the largest sales. The global bubble teamarket holds a substantial scope for growthduring the forecast period. Remarkable job and great efforts by your research team. The current valuation of the market is US$ 2.50 billion in 2022. Due to the COVID-19 pandemic, the global Bubble Tea market size is estimated to be worth USD 8062.1 million in 2023 and is forecast to a readjusted size of USD 27780 million by 2030 with a CAGR of . The Straits Times, p. 10. With globalization, new trends have started striking the food service market, thereby influencing the young generation to try new beverages. Then you can access your favorite statistics via the star in the header. The bubble originally referred to the froth created by shaking the drink, though now it is also understood as referring to the pearls that are added. By region, North America was the most prominent regional market in 2019. Furthermore, the increasing working class population in developing countries paired with rising shopper health consciousness is supporting the market growth.