Milk tea is one of the most trendy beverages for young people in recent years. Aware of that, many beverage businesses are trying to get into this profitable market to expand their brand and to reach young consumers who will drive future consumption behaves.
This article will provide fundamental knowledge about milk tea business research with updated statistics and new trends to help you build your business.
Let’s invest your precious time in this writing to gain the basic knowledge of milk tea business research right away!
What does milk tea mean?
Milk tea is as simple as a dash of milk in a hot cup of tea
The word “milk tea” refers to any tea drink that contains milk. It may be as simple as a dash of milk in a hot cup of tea, or it can be a sophisticated concoction with many components, such as the popular bubble tea. Adding milk to tea mellows and smoothes out the taste, especially black tea’s bitter overtones. Milk tea is a popular hot and cold beverage all around the world.
Milk tea is the most common variety of tea in many parts of the world. This is especially noticeable in regions of India where tea is commonly used to refer to milk tea. Tea without milk is referred to as “black tea” or “tea sans.” Milk tea is also popular in the United Kingdom, Ireland, Scotland, Canada, Sri Lanka, and Hong Kong.
However, milk tea is also a word for some hot and cold drink recipes that blend tea with a type of milk (regular, condensed, or evaporated) and a variety of spices. Certain nations have their traditional variations of these dishes, growing in popularity in the United States.
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Milk tea business research
The youthful generation’s increased consumption of flavored bubble tea promotes the bubble tea market’s growth
The milk tea market was valued at $2.4 billion in 2019 and is expected at $4.3 billion by 2027, with a 7.80 percent CAGR from 2020 to 2027. The black tea category accounted for more than half of the global bubble tea market in 2019 and is predicted to increase at a CAGR of 7.50 percent during the forecast period.
Because of its growing appeal, bubble tea has gained momentum in emerging economies. Furthermore, rising health consciousness and consumer acceptance of healthy drinks such as green tea, black tea, oolong tea, and white tea boost market development.
Moreover, the youthful generation’s increased consumption of flavored bubble tea promotes the bubble tea market’s growth. Also, intense advertising and celebrity endorsements have aided the worldwide business on its path to rise.
However, excessive sugar content in these drinks can cause health problems, and coffee consumption patterns are projected to limit market expansion. Furthermore, due to the inclusion of chemical preservatives in bubble tea, customers are shifting their preferences toward organic drinks, stifling the global bubble tea market’s growth.
On the contrary, the introduction of novel flavors and blends and strong demand for a range of teas among the youthful population are likely to give profitable chances for market development.
By base ingredient
According to milk tea market share by flavor, the fruit flavor segment was the most prominent category in 2019, accounting for the most significant share in the bubble tea industry. This can be due to a shift in customer preferences toward healthier beverages with more incredible flavor.
However, the chocolate flavor sector will expand the most, owing to an increase in its appeal across all age groups for all flavored beverages and a rise in consumer knowledge of the health advantages of chocolate.
According to the milk tea market projection, the liquid component was the most critical bubble tea market, accounting for the largest share. This is due to the availability of many possibilities, such as a mix of different liquid tastes and syrups.
However, the sweeteners market is predicted to expand the most, owing to an increase in global demand for sweet beverages.
Increased consumer awareness of healthy lifestyles impact on consumer behavior
North America was the most important market in 2019. This can be ascribed to increased consumer awareness of healthy lifestyles and increased acceptance of healthy beverages by health-conscious customers. Furthermore, increased consumer spending on healthy drinks contributes to the region’s popularity of bubble tea.
On the other hand, Europe is predicted to develop at the fastest CAGR throughout the projection period due to aggressive advertising and celebrity brand support and an increase in bubble tea awareness in the area.
Development plan to boost profitability and strengthen their position in the milk tea business products are used by significant businesses to improve their product range and remain relevant in the global market.
The research profiles prominent competitors such as Bobabox Limited, Bubble Tea House Company, Cuppotee, Fokus Inc., Gong Cha, Lollicup USA, Inc., Sumo’s (M) Sdn Bhd, Ten Ren’s Tea Time, The Bubble Tea Company, and Troika JC.
Bubble Tea Supply Inc., ChaTime, CoCo Fresh, Quickly, Kung Fu Tea, BobaLoca, Happylemon, Share Tea, T Bun International, Fanale Drinks, Grand Chainly, and Huey-Yuhe Enterprise are the other participants in the worldwide bubble tea industry.
Key Benefits For Stakeholders
- The study includes a quantitative analysis of current bubble tea market trends, estimates, and market size dynamics from 2019 to 2027 to discover the prevalent opportunities.
- Porter’s five forces study emphasizes the ability of buyers and suppliers to make profit-oriented business decisions and build their supplier-buyer network.
- In-depth analysis, market size, and segmentation identify the current bubble tea market potential.
- The most prominent countries in each area are color-coded based on their revenue contribution to the worldwide bubble tea market.
- The market player positioning category promotes benchmarking and offers an explicit knowledge of the industry’s current position of market players.
Milk tea generation
Gen Z’s trademark drink since they were six times as likely than any other generation
Milk tea may be Gen Z’s trademark drink since they were six times as likely than any other generation to consume it. According to Decision Lab’s Foodservice Monitor, their milk tea obsession has significantly increased visits to bubble tea shops over the last year. Their aversion to coffee beverages has contributed to decreased visits to coffee shops in 2017.
Milk tea is only one famous example of how Gen Z may fundamentally change the foodservice sector, underscoring why foodservice organizations should engage in knowing this generation.
For most young people, coffee is used to refresh themselves because alcohol is prohibited and traditional beverages are uninteresting, but milk tea is just the right thing. It is the domain of teenagers.
It is commonly utilized in social media. Sellers used the internet to sell their products, increasing their visibility and driving sales. The evolution of milk tea has become more than just a drink and a pleasurable experience and a social tool. Customers would be delighted and satisfied if they could have a delicious cup of milk tea or are appreciated on social media.
The raising of the internet has resulted in significant growth in the number of netizens. It is more convenient for customers to obtain commodity information and rely on social life. The development of social media has blurred the lines between media and audience, and anybody may now build a platform to express themselves.
As a result, when consumers are dissatisfied with a product, they are eager to post it on Facebook, exposing it to an increasing number of people.
There is nothing that can deny that young people are milk tea generation; therefore, beverage innovators must use this to find an ideal market gap for their businesses.
This milk tea business research is just a glance at the whole market, but it will benefit you with many essential facts and information. To find out more about topics like this one on Tan Do blog any time!