U.S. Bubble Tea Market Analysis: Market Dynamics and Growth Opportunities

The U.S. bubble tea market size was estimated to be worth USD 434.11 million in 2022. The market valuation is slated to rise from USD 464.29 million in 2023 to USD 750.59 million by 2030 at a 7.10% CAGR over the forecast period.

The rise in millennials’ preference for milk tea and coffee as nootropic drinks, combined with people’s hectic lifestyles, is a major factor in the expansion of the market. The market will expand as a result of increased flavored bubble tea consumption and the accessibility of vegan products. Due to the presence of significant market participants and the rising popularity of boba tea, the U.S. is anticipated to become a lucrative market.

Fortune Business Insights™presents this information in a report titled, “U.S. Bubble Tea Market, 2023-2030.”

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Segments-

Black Tea Segment to Experience Maximum Demand During the Forecast Period

Black tea, green tea, oolong tea, and white tea are several types of tea available on the market. Black tea segment will dominate the U.S. bubble tea market share. The International Journal of Tea Science reports that black tea extracts have effects that are both anti-obesity and hypolipidemic. Thus, manufacturers introduced new items in the market as a result of customers’ growing health knowledge regarding black tea.

Fruit Flavor Segment to Capture Majority of the Market Share During 2023-2030

The market is divided into various taste categories, including fruit flavor, original flavor, chocolate flavor, and coffee flavor. The U.S. pearl milk tea market is anticipated to be dominated by the fruit flavor category. The diversity of fruit varieties offered in bubble tea, including strawberry, green apple, passion fruit, and mango has greatly aided in the industry’s expansion.

Report Coverage

The report offers:

  • Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
  • Comprehensive insights into the regional developments.
  • List of major industry players.
  • Key strategies adopted by the market players.
  • Recent industry developments include product launches, partnerships, mergers, and acquisitions.

Drivers and Restraints

Consumer Preference for Better-for-you Beverages to Augment Growth

Due to their heavy reliance on caffeine-containing beverages, consumers in the U.S. are gradually expanding their use of bubble tea. The product is a sugary beverage, with the majority of the sugar coming from sweeteners, fruit syrups, and flavorings that have been added. The U.S. Department of Agriculture (USDA) estimates that a 16 oz cup of boba or bubble milk tea has 40g of sugar, which is more than the advised daily allowance and may be harmful to consumers’ health. The market is growing as a result of customers’ increasing need for low-sugar beverages that also offer a number of health benefits.

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Country Insights

Demand for Lactose-free Products Drives U.S. Bubble Tea Market Growth

Due to a rise in consumers who self-diagnose their lactose intolerance, Americans tend to buy more lactose-free products. Moreover, the U.S. National Library of Medicine reports that by the age of 20, approximately 30 million adults in the U.S. have symptoms of lactose intolerance. Due to the nation’s growing preference for lactose-free products, producers decided to offer vegan bubble tea options. For instance, Peet’s Coffee, a specialty coffee roaster and retailer, launched vegan boba tea in June 2022. It features two vegan alternatives and comes in three variations: brown sugar cold brew oat latte, iced brown sugar matcha latte, and brown sugar milk tea.

Competitive Landscape

Top Players Adopt Franchise Model to Gain Competitive Advantage

In the beverage industry, the category of boba tea is expanding quickly. In the U.S., consumers who want to try various flavors are now more widely accepted. However, the product’s business advancements have resulted in fierce competition, which has prompted manufacturers to use the bubble milk tea franchise model. For instance, the multinational beverage franchise Gong Cha stated in March 2022 that it had signed three new master franchisees and was rapidly expanding in the country. The business would increase the number of stores in the U.S. by almost tenfold by opening 60 new locations in Louisiana, Colorado, and Michigan. Due to the company’s power and attractiveness on a global scale as well as the quickly rising product popularity in the U.S., franchising opportunities would be available.

Key Industry Development:

November 2022: King Feng Chuen Enterprise Co., Ltd., a company that manufactures and supplies bubble tea raw materials, announced its expansion across the U.S.

List of the Companies Profiled in the Report:

  • Quickly (U.S.)
  • Tiger Sugar (U.S.)
  • Gong Cha (U.S.)
  • Kung Fu Tea (U.S.)
  • Sharetea (U.S.)
  • The Boba Guys (U.S.)
  • Tapioca Express (U.S.)
  • Bubbles Tea & Juice Company (U.S.)
  • Brew Tea Bar (U.S.)
  • Happy Lemon (U.S.)

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