Overview of Bubble Tea
Bubble tea is a popular Taiwanese beverage that has become a worldwide phenomenon. Its popularity has surged in the last two years, particularly in America. 2022 trade data shows these pearls are now US’s biggest food import from Taiwan. A 350 percent markup on a beverage is common, and gross profit margins in the 75-80 percent range are not rare in retail. Rising preference for beverages over carbonated drinks will boost bubble tea demand.
Evolution and Growth of Bubble Tea
Bubble tea originated in Taiwan in the early 1980s at a small tea stand. It spread across East and Southeast Asia in the 1990s, becoming a cultural icon. The global bubble tea market reached $2.79 billion in 2022 and is expected to reach $4.29 billion by 2028. The number of boba shops globally has significantly increased.
Popularity of Bubble Tea in the US
Bubble tea became popular in the US in the 1990s and gained further traction in 2013. It has evolved into a cultural identity within the Asian American community. Boba tea is commonly known as "boba" within this community. The US bubble tea market size is forecast to rise to $1,245 million by 2033, with sales growing at a 13.% CAGR.
Rise of Bubble Tea Culture
Bubble tea shops have become prevalent in various cities, offering a range of flavors and customizable options. Bubble tea bridges cultures in cities like New York City and New Jersey, offering fruit flavors, tea varieties, milk options, syrups, and toppings like jelly or tapioca pearls. The drink has different names across regions and has gained popularity worldwide with various experimental variations.