Food, the ‘tea with bubbles’ market splashes: today it is worth 2.7 billion dollars

Cross Border Growth Capital report, 480,000 bubble tea bars in China but rising in the US. In Italy, 160 places have been mapped to find the trend drink, market at 30 million in 2021

The East conquers the palates of the world and, after sushi, sashimi and kimchi, the last twenty years have marked the steady growth of popularity of bubble tea, the ‘boba’, snack-drink created in Taiwan around 1980 and, since 2000, increasingly present in food habits around the world. Penetrated to the West via the United States, according to ‘Bubble Tea Market Report 2021’ published and produced by Cross Border Growth Capital, the global ‘bubble tea’ market in 2021 is worth 2.7 billion dollars and is expected to reach a value of over 4 billion dollars in 2027, growing with a CAGR of 7.8% over the next 6 years. From what emerges from the Report published by the Italian advisor for capital increases and extraordinary finance operations for startups and SMEs, today ‘bubble tea’ has also arrived in Italy as the next big thing in the field of food trends because it is considered a tasty break. all-seasons and above all healthy. The drink based on tea, milk and fruit of your choice, garnished with chewy tapioca pearls, is therefore in turmoil all over the world.

“Leading the success are the Apac countries, with Taiwan and Vietnam leading the ranking, which still have a predominant role and cover 35% of the world market “explains Andrea Casati, Vice-President of Growth Capital.” Our analysis highlights a gap between Asia and the rest of the world also for another point: the number of bubble tea bars (or shops) by state which, as of 2020, stood at 480,000 for China and only about 4,200 in 2021 for the United States leader of the western market in which it is estimated that 5,000 tea bars will be reached in 2024 “. In this scenario, Italy still has a fragmented situation but the market has great potential: it is estimated that it can settle on a value of around 30 million euros in 2021 and reach 95 million euros in 2027.

At the territorial distribution level, Italian bubble tea still remains confined to large cities and to small towns with a high population density, for a total of about 160 bars mapped in the country. In particular, it is Milan, Rome, Bologna, Turin and Florence that take advantage of 72% of the total of the Italian market. “The Italian market is showing all the signs of alignment with international exponential growth trends” underlines Andrea Casati. “The
case of Milan – he observes – is emblematic: between 2017 and 2021, the metropolis saw its bubble tea bars increase from 7 to 40, thus recording an 82% growth. “To dominate the city in 2021, holding 8% with 3 Dos (and a fourth opening in January), it is Frankly Bubble Tea and Coffee, the number one chain in Italy: in 2020 it reached 1.5 million euros in revenues.