May 26, 2024

The Growing Demand For On-The-Go Refreshments Is Driving The Pearl Milk Tea Market

Pearl milk tea has gained significant popularity as a refreshing on-the-go beverage option in recent years. Pearl milk tea refers to milk tea that is topped with chewy tapioca pearls. It is prepared by mixing black tea with evaporated or condensed milk and small black tapioca balls that burst in the mouth providing a unique texture. Pearl milk tea is highly customizable and can be enjoyed hot or cold depending on individual preferences. It provides an energizing caffeine boost from black tea along with mild sweetness from milk. The added tapioca pearls deliver a distinctive chewy mouthfeel making it an exciting beverage choice.

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, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The growing trend of online ordering and increasing availability of customized pearl milk tea mixes are fueling the market growth. Ready-to-brew tea mixes containing black tea, milk powder, and freeze-dried tapioca pearls have gained traction among consumers looking for a quick and convenient way to enjoy this beverage. E-commerce platforms are offering a wide variety of flavors along with options to customize tea strength and milk quantity. This has made pearl milk tea accessible to a wider audience globally. In addition, rising consumption among millennials and generation Z consumers due to social media exposure is boosting the popularity of pearl milk tea as a trendy drink choice.

Porter’s Analysis
Threat of new entrants: The pearl milk tea industry requires significant investment in machinery and resources to produce quality products. Established brands have created customer loyalty which poses barriers for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like bubble tea and coffee. However, growing brand awareness increases switching costs for buyers.
Bargaining power of suppliers: Suppliers of raw materials like tea, milk, and tapioca pearls have lower bargaining power due to availability of substitutes and less differentiation in supplies.
Threat of new substitutes: Products like bubble tea, coffee and flavored drinks pose threat of substitution. However, pearl milk tea has established itself as unique brand over time due to taste.
Competitive rivalry: The pearl milk tea market is highly fragmented with presence of numerous regional and local players. Players compete on basis of innovation, price, quality, and customer experience to gain market share.

Key Takeaways
The Global Pearl Milk Tea Market Growth is expected to witness high over the forecast period led by rising health-consciousness.

Regional analysis: Within Asia Pacific, China is the fastest growing market for pearl milk tea. Rising disposable incomes and increasing influence of western culture on food habits is driving growth. Taiwan is the second largest consumer due to popularity of boba drinks as part of daily diet.

Key players operating in the pearl milk tea market are Oracle Corporation, IBM Corporation, SAP SE, Workday, Inc., Microsoft Corporation, Sage Group plc, Infor, Deltek, Acumatica, Inc., and Epicor. Key players are focused on expanding to foreign markets through collaborations and introduction of innovative flavor variants to appeal new customers. They are also investing in branding and marketing activities to strengthen their consumer connect.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it