U.S. Bubble Tea Market To witness Huge Expansion By 2030

U.S. Bubble Tea Market Summary

The U.S. bubble tea market size was valued at USD 953.36 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2030. The anticipated growth is primarily driven by the steady demand for tea and coffee-based drinks infused with nootropics among the working population in the country. Additionally, the availability of numerous flavors developed in alignment with evolving consumer preferences and tastes, the relatively low-calorie content of bubble tea, and the introduction of zero-fat variants by innovative producers contribute significantly to its rising popularity. Bubble tea originated in Taiwan during the 1980s and entered the U.S. market in the 1990s. Since its arrival, it has progressively gained traction in various regional markets across the country.

In 2023, the U.S. bubble tea market represented 32.75% of the global bubble tea industry. It has become particularly popular among millennial and Gen Z consumers. The beverage is sold by a wide range of vendors offering diverse flavors and styles, attracting consumers with varying preferences. Beverage enthusiasts often seek innovation in flavor profiles and beverage formats, a factor that strongly supports the growing popularity of bubble tea in the United States.

The black tea-based segment of the U.S. bubble tea market held a dominant share of 43.15% in 2023. This segment is particularly favored due to the traditional and genuine taste of black tea. Furthermore, black tea is commonly believed to offer health benefits such as lowering blood sugar levels and reducing bad cholesterol, while also promoting digestive health, contributing to its appeal among health-conscious consumers.

Key Market Trends & Insights

• The fruit-flavored bubble tea market in the United States captured a 38.2% share in 2023. The increasing demand for fruit flavors is largely attributed to the wide variety they present. Consumers are attracted to fruit-flavored bubble tea not only for the nutritional benefits but also for the freshness and diversity it brings to the beverage experience.
• The taro flavor segment of the bubble tea market in the U.S. is projected to register a CAGR of 10.6% from 2024 to 2030. Taro, a root vegetable recognized for its subtly sweet and nutty taste along with its starchy texture, has become a widely appreciated flavor in the U.S. market. Its unique flavor profile and creamy consistency have contributed to its rapid popularity among bubble tea consumers.
• The U.S. bubble tea market is characterized by fragmentation due to the presence of numerous players operating across large, medium, and small business scales. Although the market is moderately influenced by branding, a significant portion of the consumer base prefers having their bubble tea customized according to individual tastes and preferences rather than focusing on specific brand names.

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Market Size & Forecast

• 2023 Market Size: USD 953.36 million
• 2030 Projected Market Size: USD 1.74 billion
• CAGR (2024 - 2030): 9.5%

Key Companies & Market Share Insights

Kung Fu Tea, a prominent bubble tea brand in the United States, was established in Queens, New York in 2010. Since its inception, the company has expanded substantially and now operates in over 300 locations across the United States, establishing itself as one of the leading players in the market.

Shareeta, an internationally recognized bubble tea company, was founded in Taipei in 1992. Over the years, the company has built a robust global presence, currently operating in 15 countries with more than 500 locations worldwide, further contributing to the global footprint of bubble tea culture.

Key Players

• Kung Fu Tea
• Gong cha
• TIGER SUGAR
• Quickly Boba Tea
• ShareTea
• Boba Guys
• Tapioca Express
• Bubbles Tea & Juice Company
• Happy Lemon
• Chatime

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Conclusion

The U.S. bubble tea market is set for sustained growth owing to rising health consciousness, preference for customized beverage options, and increasing demand from younger demographics. Factors such as evolving flavor innovations, convenience of availability, and perceived health benefits are enhancing market attractiveness. While major players continue to expand their reach, local businesses also thrive by catering to specific consumer preferences. With strong consumer engagement and cultural adaptability, bubble tea remains not only a popular refreshment choice but also a steadily growing trend. The combination of tradition, taste, and innovation ensures continued success in the competitive U.S. beverage landscape.