"Market Intelligence that Adds Flavour to Your Success"
The China bubble tea market size is projected to grow at a CAGR of 9.01% during the forecast period.
China has seen a surge in demand for milk tea as it offers health benefits and unique flavors. Bubble tea is gaining traction in the country, especially among the younger generation, due to its attractiveness and various flavors. Furthermore, the penetration activities of regional manufacturers such as Mixue, Chagee, and HEYTEA are positively impacting on product sales. The rising consumption of the product due to its health benefits also helps the China bubble tea market growth. According to a study published in the National Library of Medicine in 2022, chewing tapioca pearls may help increase salivary C-protein (CRP) and calcium (Ca) levels.
Tea Flavor Innovations to Boost Product Sales
In China, sweetened and colored bubble tea drinks have been driven by the increasing health and a more delicious taste in the bubble milk tea segment. Before the boom of sweetened and colored boba tea beverages, there had already been a great availability of street shops selling traditional bubble milk tea brands in China. Furthermore, the rising demand for new tea varieties and hybrid tastes such as fruit flavored mixed with tea, cheese tea, and others have increased the demand for flavored bubble tea. Western processed foods have been growing in the region. Flavors such as peach, oolong tea, red bean, and matcha tea are popular among Chinese consumers. White teas and Jasmine are also emerging flavors propelling bubble tea sales in the country. Furthermore, bubble tea manufacturers in the country also are introducing flavors that are gaining immense popularity. For instance, in February 2020, Heytea, a Chinese tea drink chain, developed a new formula by adding salty, creamy cheese to its boba tea which helps compensate for the bitterness of tea and seems to appeal to people.
Rising Lactose Intolerant Population Propels the Demand for Plant-based Beverages
Lactose intolerance is rising in the country, with increasing consumer health awareness and changing lifestyles. The rising number of food allergies drives the demand for lactose-free products, which are a healthier alternative to conventional dairy. National Institutes of Health US National Library of Medicine report 2020, about 85% of the Chinese population suffer from lactose intolerance. Therefore, consumers switch to dairy-free foods by choosing dairy alternatives, including beverages such as milk tea. The prominent players in the country adopt strategies to meet the increasing demand for plant-based beverages. For instance, in September 2020, Mother Pearl, a healthy teahouse in Hong Kong, introduced the first plant-based bubble tea store. The food chain introduced vegan-friendly boba teas with unique flavors with a mission to promote well-being and health.
Presence of Trans-Fat and High Sugar Content in the Product May Impede the Market Growth
Bubble tea contains high levels of sugar and trans-fats, which may not be preferred by health-conscious people. The manufacturers use trans-fats to enhance the taste and texture of the drinks. The constant consumption of such products may lead to adverse health effects such as harmful cholesterol levels, heart risk and diabetes. According to the National Center for Biotechnology Information, a 16 ounce, i.e. 473 ml of single served boba drink with milk tea and tapioca balls, contains 299 calories and 38 grams of sugar. Therefore, the presence of high sugar in such products may hamper the sales of the products. Furthermore, the increasing number of coffee shops and coffee consumption in the country is negatively impacting market growth.
In terms of the competitive landscape, the market depicts the presence of established and emerging bubble tea companies. The rising popularity of bubble milk tea owing to flavor, accessibility, and ongoing reinvention of the traditional tea formula led the manufacturers to focus on market expansion strategies. The leading retail chains of pearl milk tea increased their investments and expanded their presence. For instance, in January 2023, Heytea opened new stores in 37 cities in 2022 with a total membership base of 63 million.
Some of the other companies with a considerable presence in the China market include The Alley, Chatime Group, Coco, Koi, Yediandian, and others. Coco Fresh, or Coco is a famous Chinese brand with more than 2,000 stores worldwide and 20 years of experience in the pearl milk tea market. The Alley is also the most prominent brand in China, which focuses on the aesthetic side of beverages and is known for its brown sugar tapioca pearls, layered matcha, and black tea drinks.
To gain extensive insights into the market, Request for Customization
The market research report provides a detailed analysis of the market. It focuses on key aspects such as an overview of technological advancements, milk tea flavor innovations in China, and the rising lactose-intolerant population. Additionally, it includes social media influence, new product launches in Asian countries, specifically China, supply chain analysis, key industry developments such as mergers, partnerships, & acquisitions and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the long term growth of the market in recent years.
CAGR of 9.01% from 2023 to 2030
Value (USD Billion)
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. 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. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. 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”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry