Why Are Beverage Companies Aggressively Launching Bubble Tea Products in 2024?

Key takeaways:

• Introduction
• Health benefits of boba tea
• The rise of industry in Europe

The food and beverages sector has been continuously expanding over the past few decades due to the advent of new food items, recipes, cooking styles, and cuisines. Among the new foods and beverages that have come up in the sector, bubble tea has become quite popular. The origin of bubble tea or boba tea, as it is sometimes called, can be traced back to Taiwan in the 1980s. Boba is chewy, soft, and gummy tapioca pearls that are made from cassava roots. Boba tea is, thus, prepared using milk as a base, to which boba is added along with other ingredients such as jelly, fruit balls, nuts, etc. Boba tea is served in both hot and cold forms, depending upon the preference of the consumer.

Analyzing The Reasons Behind the Rising Popularity of Bubble Tea

In the past few years, the bubble tea industry has experienced massive growth across the globe due to the rising disposable income of people across the globe and changing consumer preferences. The shifting consumer preference for boba tea is primarily owing to the calories and carbohydrates offered by it. These calories and carbohydrates provide instant energy to the consumer, which is why it has become especially popular among the millennials and the GenZ generations.

Secondly, this beverage has a milk base, its regular consumption boosts the calcium content in the body. Thus, this beverage is recommended for people who suffer from ailments related to bones. Medical studies have even shown that boba tea consumption lowers blood pressure and cholesterol, thus bringing down the chances of cardiovascular conditions like heart disease or stroke. Many bubble tea manufacturing companies have started launching products that have a similar base as that of green tea. Such boba tea products contain antioxidants that reduce the risk of liver, prostate, colorectal, and breast cancers. These antioxidants also enhance the immune system of the body and protect it from chronic diseases. Most boba tea recipes involve the addition of fruits which are rich sources of minerals and vitamins.

Apart from these health benefits, there are certain demographic reasons also that have increased the popularity of this beverage. The rise in the number of working women across the globe has led to increased consumption of boba tea as it can be easily made within minutes. Thus, as the lifestyle of people in urban areas becomes busier, the consumption of such beverages is predicted to rise significantly. Furthermore, the COVID-19 pandemic has led to a trend where many people prefer homemade food and home cooking. Due to this trend, the demand for citrus fiber-based foods and beverages has surged massively. This has, in turn, helped in the growth of the bubble tea sector.

Europe has the highest growth rate in the bubble tea industry

While the bubble tea sector is witnessing tremendous growth across the globe, its performance has been noteworthy in regions of North America and Europe. The North American boba tea industry held the highest revenue share in 2022 due to the rising awareness regarding the importance of a healthy lifestyle. Many people living in countries like the US and Canada are willing to spend money on food items and beverages that are healthy. On the other hand, the market in Europe is predicted to surge ahead with the fastest CAGR in the 2023-2032 period. The aggressive advertising and marketing campaigns undertaken by the companies operating in this industry have led to the growth of this domain in Europe. Furthermore, many influential personalities and celebrities are being roped in by these companies to endorse their products which have expanded the scope of this industry in Europe. The rising awareness regarding boba tea, due to these marketing campaigns, is expected to go a long way in opening new opportunities for growth in the sector.

To summarize, the growth of the bubble tea sector can be attributed to the rising popularity of this beverage owing to the health benefits offered by it. Furthermore, the demographic shifts across the world leading to changing consumer preferences have also played a major role in boosting the revenue of this sector. 

To get an in-depth analysis of the growth drivers and investment opportunities in the industry, feel free to contact us.

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