US Bubble Tea Market Size Likely to Expand at a CAGR of 10.3% By 2033

As per the current market research conducted by the CMI Team, the US Bubble Tea Market size is expected to record a CAGR of 10.3% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 1,416.2 Million. By 2033, the valuation is anticipated to reach USD 3,456.4 Million.

US Bubble Tea Market: Growth Factors and Dynamics

• Increasing Popularity of Asian Beverages: The growing cultural exchange and increasing interest in Asian cuisines have popularized bubble tea, making it a trendy choice among diverse demographics in the US.

• Health-Conscious Consumers: The demand for healthier beverage options has led to the incorporation of natural ingredients, such as fresh fruit flavors and non-dairy milk alternatives, attracting health-conscious consumers.

• Customization and Variety: The high level of customization available in bubble tea, from tea base to toppings and sweetness levels, appeals to consumers’ desire for personalized beverages.

• Expansion of Specialty Tea Shops: The proliferation of specialty tea shops and cafes, along with their innovative marketing strategies, has significantly boosted bubble tea’s visibility and accessibility.

• Social Media Influence: Social media platforms play a crucial role in driving bubble tea trends, with visually appealing drinks often becoming viral, thereby attracting younger, tech-savvy consumers.

• Convenience and Ready-to-Drink Options: The introduction of ready-to-drink (RTD) bubble tea products in supermarkets and convenience stores has made it easier for consumers to enjoy bubble tea on the go, broadening the market reach.

• Innovation in Flavors and Ingredients: Continuous innovation in flavors and ingredients, such as the introduction of new fruit flavors, exotic toppings, and healthier alternatives, keeps the market dynamic and attracts a wide range of consumers looking for novel and unique experiences.

• Franchise and Business Opportunities: The growth of bubble tea franchises and the low barrier to entry for opening new bubble tea shops provide significant opportunities for entrepreneurs, contributing to the market’s rapid expansion and regional penetration.

• Urbanization and Lifestyle Changes: Increasing urbanization and the fast-paced lifestyle of city dwellers have boosted the demand for convenient, on-the-go beverages like bubble tea, which can be quickly consumed while commuting or during breaks.

• Collaborations and Partnerships: Strategic collaborations and partnerships between bubble tea brands and other food and beverage companies, such as popular snack brands or cafes, help in cross-promotional activities, expanding customer base and enhancing market presence.

US Bubble Tea Market: Partnership and Acquisitions

• In 2023, The Coffee Bean & Tea Leaf introduced Ceylon Milk Tea with Brown Sugar Boba in nine trial stores across Southern California and Arizona, responding to increasing consumer demand for the product. This strategic move aims to test market reception and expand offerings accordingly.

• In 2021, Bubble Tea Supply Inc. unveiled bubble tea availability in its Bubble Tea Club, offering 14 additional topping flavors alongside traditional options like milk, mango, green apple, lychee, and Thai tea. The introduction of fruity flavors, including honeydew, adds variety and enhances the beverage experience.

Report Scope

US Bubble Tea Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US Bubble Tea Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Temporary Closure of Shops: Many bubble tea shops faced temporary closures due to lockdowns and social distancing measures, leading to a significant decline in on-premises sales.

• Supply Chain Disruptions: The pandemic caused disruptions in the supply chain, affecting the availability of key ingredients and materials necessary for bubble tea production.

• Adoption of Delivery Services: Bubble tea shops quickly adapted by partnering with food delivery services and offering online ordering, which helped maintain sales during lockdowns.

• Emphasis on Health and Hygiene: Enhanced health and hygiene measures reassured customers and encouraged them to return to bubble tea shops as restrictions eased.

• Innovation in Product Offerings: The introduction of new flavors, healthier options, and limited-edition products attracted customers back, revitalizing interest in bubble tea.

• Expansion of RTD Products: The development and increased availability of ready-to-drink (RTD) bubble tea in grocery stores and supermarkets provided convenient options for consumers.

• Marketing and Social Media Engagement: Effective use of social media and digital marketing campaigns helped bubble tea brands stay connected with their customers, promote new products, and drive foot traffic back to stores.

• Diversification of Revenue Streams: Bubble tea shops diversified their revenue streams by offering merchandise sales, DIY bubble tea kits, and subscription services, providing additional income sources and enhancing customer engagement beyond in-store purchases.

• Community Support and Loyalty Programs: Establishing community support initiatives and implementing loyalty programs incentivized customers to return to bubble tea shops, fostering a sense of belonging and encouraging repeat business, thus aiding in the recovery process.

In conclusion, the COVID-19 pandemic has had a mixed impact on the US Bubble Tea Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the US Bubble Tea Market:

• Chatime
• Gong Cha
• Kung Fu Tea
• CoCo Fresh Tea & Juice
• Sharetea
• Presotea
• Ten Ren’s Tea Time
• Lollicup USA Inc. (Boba Time)
• Vivi Bubble Tea
• Boba Guys
• Bee & Tea
• Tbaar
• Snow Monster
• It’s Boba Time
• Quickly
• Others

The US Bubble Tea Market is segmented as follows:

By Type

• Black Tea
• Green Tea
• Oolong Tea
• White Tea
• Herbal Tea

By Milk

• Dairy Milk
• Non-dairy Milk

By Flavor

• Fruit
• Taro
• Strawberry
• Classic
• Coffee
• Others