by The global pearl milk tea market is experiencing steady growth fuelled by increasing health consciousness among consumers and rising inclination towards exotic drinks among millennials and gen Z. Pearl milk tea which is a refreshing beverage prepared by boiling black tea with evaporated milk and tapioca pearls has gained tremendous popularity worldwide in recent years. Consisting of antioxidants from black tea and nutrients from milk, pearl milk tea offers a tasty and healthy drink option.
The global pearl milk tea market is estimated to be valued at US$ 53.99 Bn in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024 to 2031.
Pearl milk tea or bubble tea as popularly known is a Taiwanese tea-based drink that is prepared using a variety of teas including black tea, green tea or oolong tea. Milk and flavorings are added to the tea and then tapioca pearls or popped boba are mixed in for texture. The chewy tapioca pearls add an unique twist to the creamy tea beverage. Pearl milk tea shops have gained mass appeal globally due to their exotic and unique offerings. The market is gaining traction among younger population who prefer customized and flavored drinks. The convenience of on-the-go consumption also drives the pearl milk tea market.
Key Takeaways
Key players operating in the pearl milk tea market are Oracle Corporation (U.S.),IBM Corporation (U.S.),SAP SE (Germany),Workday, Inc. (U.S.),Microsoft Corporation (U.S.),Sage Group plc (U.K.),Infor (U.S.),Deltek (U.S.),Acumatica, Inc. (U.S.),Epicor (U.S.). These players are focusing on expanding to untapped markets and offering new flavors to attract customers.
The global pearl milk tea market size is witnessing high demand due to increasing health consciousness among consumers and rising popularity of Asian fusion beverages. Younger population is fueling market growth through their frequent purchases of exotic drinks and snacks.
Major players are expanding their global footprint through franchising and delivery options. The market is anticipated to witness fastest growth in Asia Pacific followed by North America and Europe. Rising disposable incomes and growing exposure through social media are contributing to market expansion worldwide.
Market Key Trends
One of the key trends being observed in the pearl milk tea market is the introduction of healthy and low calorie options. Due to increasing health awareness, players are launching sugar free and dairy free pearl milk tea varieties prepared using plant based milk like oat milk or almond milk. They are also incorporating superfoods like acai berry, moringa or matcha to provide antioxidants. Flavored and customized pearl milk teas are also popular among millennials. With rising experimentation, newer flavors like rose, chocolate and fruit combos are being offered in the market.
Porter’s Analysis
Threat of new entrants: Pearl milk tea has become quite a popular drink globally over recent years making it difficult for new players to enter the market due to the strong brands that are already established.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to the availability of similar pearl milk tea products from various brands.
Bargaining power of suppliers: A few specialized suppliers exist for ingredients like pearls, tea leaves and milk powder giving them some power over pricing in the supply market.
Threat of new substitutes: Other milk-based tea drinks and boba drinks pose a moderate threat as substitutes in the pearl milk tea market.
Competitive rivalry: The market has some very large brands competing for market share globally.
Geographical regions: Currently, Asia Pacific accounts for the largest share in the pearl milk tea market, valued at over US$ 30 Bn in 2024 majorly driven by countries like China, Taiwan and Singapore where it originated and remains popular.
Fastest growing region: The pearl milk tea market in North America is expected to grow at the fastest CAGR of around 8% during the forecast period. This can be attributed to rising adoption of Asian cuisine and beverages by millennials in the US and Canada. The expansion of major pearl milk tea chains in the region is also driving the market growth.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
