(Different colored boba drinks)
Haven’t heard of boba? Where have you been living, under a rock?
Bubble tea is a Taiwanese tea-based drink with a variety of toppings such as chewy tapioca balls. This drink has become a major trend and is creating buzz in the industry.
Since the 1980s, the bubble tea trend has spread from Asia to America and Europe. New companies are continually joining the revolution.
With more than 200 flavor combinations and thousands of drink combinations, the bubble tea enterprise continues to grow quickly.
(Chart of U.S. bubble tea market size 2016-2017)
According to Grand View Research, the global bubble tea market ihas a compound annual growth rate of 8.9% from 2020 to 2027. By 2027, it will reach 4.25 billion USD.
A key factor to its success is the availability of a large variety of flavors and tea options. This strategy allows for a bigger base for consumers to find their favorite flavor.
Another important force is the shift of consumption toward less carbonated drinks. The consumer market continues to shift towards healthy drinking habits.
Health-conscious individuals are noticing many beneficial tea options such as black tea. Black tea is an essential base when it comes to making bubble tea.
Black tea held the largest market share in 2019 with more than 45%. It helps reduce blood sugar levels and bad cholesterol and improves gut health.
These benefits are just a couple of reasons for the growth and dominance of the industry.
The industry is increasing in popularity and franchises are expanding globally. One of America’s largest bubble tea brands, Kung Fu Tea, even founded National Bubble Tea Day on April 30.
To participate, the company asks customers to post selfies with their favorite boba on social media and to use the hashtag #NationalBubbleTeaDay.
As a result, the company saw weekly sales increase by 63%. Social media followers increased by 10k in two weeks and website views increased by 70%.
Their strategy invites consumers to visit the stores every year to experience the growing menu.
The popular drink is becoming more than a trend; it is taking root in people’s daily consumption. This is just the beginning for this industry. Boba will only continue to grow and dominate.
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