Bubble tea? Surely you've seen teenagers drinking garishly coloured drinks with bits in? Bubble tea as a cultural phenomenonseems to be trending around the world, but what makes it so popular and why does it just keep growing? What can FMCG brands learn from this?
What is bubble tea?
Bubble tea is a Taiwanese drink that's made by combining tea with milk or fruit juices. You can also add toppings, with the most common one being tapioca pearls. There are many other toppings available, like popping bubbles, grass jelly (often in cute shapes such as stars) or pudding (custard) and there are lots of flavours to choose from.
However, the original versions were made with black, green or oolong tea, with added milk and tapioca balls that had been cooked in sugar syrup to give them the now characteristic dark colour. Extra syrup or honey was often added to counteract the bitterness of the tea and the product was shaken to give it the bubbles that lead to the name.
Should it be called bubble tea or boba?
While “bubble tea” and “boba tea” all refer to drink only, “boba” might also mean tapioca pearls. This probably has its roots in the Asian languages, where the same word is used to describe both the beverage and the bubbles.
Taiwan, the birthplace of bubble tea: “波霸” (“boba”) Japan: “タピオカ” (“tapioca”)
Sharetea
Honestly speaking, it's up to you and probably depends on where you are in the world. East coast US tends towards "Bubble tea" for instance whilst the west coast usually uses the term "boba" but essentially these are one and the same drink.
The numbers behind the hype
The global bubble tea marketsize was valued at USD 3.2 billion in 2023. It is expected to reach USD 6.46 billion in 2032, growing at a CAGR of 8.12% over the forecast period (2024-32). (Statistics are probably only an indication of trends and approx. size).
The Asia Pacific region consumes the most, ahead of North America and then Europe.
The average age of consumers is 20-29, and this also explains why social media plays such a key role in the expansion of the product.
How did the bubble tea trend start?
It all started in Taiwan in the 1980s. There are 2 tea shops who claim to be the original: Chun Shui Tang teahouse in Taichung (this is more widely accepted to be the original) or the Hanlin tearoom in Tainan.
The bubbles referred to were actually not the tapioca pearls which are added to the product, but the bubbles achieved by shaking it to blend, like a cocktail, to achieve that creamy effect and mouth feel.
The exact origins may be unclear, but from Taiwan, it spread to Southeast Asia and then to America, particularly California.
The trend grew due to a combination of rising global culture, tourism, immigration, and social media, which made it later explode in popularity. Many of the original bubble tea chains that started in America were actually Taiwanese in origin. The rise in "cafe culture" helped the bubble tea trend to grow.
In Europe there have been a couple of waves of popularity: the first perhaps around 2008-2011 and the 2nd now with massive growth post covid.
Why did bubble tea become popular in Taiwan, a country with such a strong tea tradition?
People, especially the younger generation, were moving away from traditional, formal teas. They wanted something more fun and innovative, which led to the creation of bubble tea. Bubble tea is often drunk iced, and this was also a modern trend that fitted well with the bubble tea taste. In many countries, you see similar trends with elaborate milkshakes, and bubble tea fits into that category with its unique toppings and flavours.
There are many unique versions out there.
For example, in Singapore, they have alcoholic bubble teas. While bubble tea is generally popular with younger people, adding alcohol might appeal to a different demographic. In the UK, bubble tea is mostly popular among teenagers, but in Asia, it’s enjoyed by a wider age range.
Emily Preston
What are the most popular bubble tea flavours?
Standard milk tea is very popular, along with flavours like taro (creamy, caffeine free), Thai milk tea, and strawberry milk tea. Taro, for example, isn’t a common vegetable in the UK, but it’s popular in bubble tea. The vibrant colours of these teas, like the green from matcha or the purple from taro, also make them appealing on social media, which helps boost their popularity among younger people.
I've also seen some unusual bubble teas, like sweet potato noodle milk tea with a tea egg on top.
Steeped Dreams did some research in the South West of the US in 2021 and came up with this top 10 most popular bubble tea flavours list:
- Taro (milk teas and slushes)
- Strawberry (milk teas and slushes)
- Classic milk tea
- Thai tea
- Matcha milk tea
- Brown sugar boba milk tea
- Vietnamese coffee
- Jasmine green milk tea
- Mango slush
- Oreo smoothie
Of course this isn't a definitive list for all time or regions but it's at least an indication of what people like.
Can bubble tea be a healthy treat?
It’s true that bubble tea can be high in sugar, especially with the popping bubbles, which have a plastic-like consistency that some people aren’t fans of. However, the healthiness depends on the combination you choose. Some people opt for green tea or matcha-based bubble teas, which can be healthier, especially if you skip the sugar and don't add extra cream or pudding.
Of course, green and black tea both have health benefits which can also be enjoyed from consumption in bubble tea.
What criticisms are made of the bubble tea trend?
Health Aspects
First up, it can be really unhealthy if you add extra sugar, cream, all the toppings etc. Your tea can quickly become a true "calorie bomb", cancelling out any health benefits of the original green or black tea base.
When you consider that Taiwan remains the largest consumer of bubble tea at an average of 100 cups annually per person, that adds up to a lot of bubble tea, calories and sugar!
However, our research showed that over 50% of consumers prefer their teas with less sugar - fitting to the post-covid trend of healthier treats.
Some people are also concerned about reported potential health risks, from traces of chemicals in the ingredients. These studies are not conclusive - although in some places there may be artificial colourings added to the product. It seems that the 38g of sugar that you get on average in a 475ml cup is likely to be the biggest risk.
Pricing
Another thing to note is that bubble tea can be quite expensive.
Sometimes, it’s even more expensive than a fancy coffee from Starbucks. Prices can vary a lot depending on the chain and location. Some places even charge more for hot drinks, with cold (iced) being the default for this trendy drink. When compared to coffee chains like Costa or Starbucks, bubble tea can still be on the pricier side.
In bigger chains like Gong Cha, the prices are higher compared to smaller, independent shops. For example, in Newcastle, a basic milk tea can cost anywhere from £4 to £6, depending on the size and toppings. The average price is around £4.50 for a large, basic tea. Adding extra toppings can quickly make it more expensive.
Emily Preston
A Brief Analysis of Bubble Tea Market
360 Market Updates 1 year ag
Due to time constraints, we didn't check the price list of the branch of Tea'amo, that we visited in Vienna (nor did we take a photo!). Emily enjoyed a basic Thai cha with tapioca bubbles which cost €6.50 for a large cup. That's pretty much in the normal price range, but we didn’t really check the prices for all the different toppings as we had a train to catch!
Sustainability
This is one of the main criticisms of the product as a whole, due to it being served mostly in single use plastic tumblers with a straw. There are some companies starting to push for more sustainable packaging options though.
The haptics are not for everyone
It’s easy to feel overwhelmed by all the options if you’re new to bubble tea & some people also find the texture off-putting. Emily has a friend who just can’t handle the tapioca pearls.
The texture can be a barrier for some people. Certain bubble teas, like those with taro, have a thicker consistency, which some people might not enjoy. My first one was a mint-flavoured milk tea, which was very sweet. Over time, I’ve learned to customise my order to make it less sweet and more balanced.
Emily Preston
The first bubble tea that I had - back in 2003 in Taiwan (ie before Emily was even born!) was bought for me; nobody told me about the tapioca pearls. It was also really sweet, but had small jelly pieces inside flavoured with some bitter Chinese herbs & I foolishly tried to dispose of it down the hotel sink and managed to block it... If I'd been asked about the options I'd certainly have gone for no sugar and no jelly!
What drives the bubble tea phenomenon?
Its popularity is partly due to its customisability. People love being able to choose their own combinations of flavours and toppings, which aligns with the trend of personalised food and drink options.
Bubble tea also straddles the line between a drink and a dessert, offering a sweet, fruity or perhaps creamy option that appeals to a wide audience.
One things that helps the spread of bubble tea as a cultural phenomenon is the fact it can cater to various dietary preferences, like being vegan or gluten-free.
When I ordered tea in Vienna yesterday, they asked if I wanted regular milk or a plant-based milk. It's rare to find a place that doesn't offer these options nowadays. Bubble tea's flexibility and variety are key factors in its widespread appeal.
Emily Preston
The fact that many people in Asia are lactose intolerant has also helped, given that it offers alternatives to dairy.
Social media definitely plays a huge role in making bubble tea trendy. The bright colours and massive range of possible variations make the products appealing to take photos of to share on socials - this is accentuated even more by the fact that the main target consumer group, especially in Europe and the US, are younger generations, who like to share many aspects of their daily lives online.
Case Studies on the spread of Bubble Tea as a Cultural Phenomenon
Gong Cha
Gong Cha started in Taiwan around 2006 and then expanded to Hong Kong and beyond. As of last year, bubble tea shops have opened in places like Portugal and Belgium, and there are now over 1,800 locations in 20 different countries. Gong Cha is probably the most well-known international chain, but there are also many local and independent stores contributing to the spread of the bubble tea trend.
The company prides itself on using only loose-leaf tea, no bags or powders, and ensures that all drinks are served at their freshest by making all tea and pearls fresh in store with just a four-hour shelf life.
The brand became a social media sensation by creating visually appealing drinks but also offering a huge range of flavours and toppings, that allow around 600 combinations.
Offering customers stamp cards (get a free drink after consuming x products) has been a great way to maintain loyalty, whilst also gathering customer data, allowing future promotions to be more closely tailored to consumers' tastes. In the UK for example, Gong Cha has a large student customer base so they often offer specific student promotions.
HeyTea
HeyTea started in Shenzhen, China in 2012 and has since expanded to 9 countries with 4000 stores worldwide. They are perhaps most famous for their "cheese tea": cold tea topped with a layer of frothy milk, mixed with cream cheese (salty or sweet) & whipped cream.
The brand is well known for designing their stores with an appealing aesthetic, to add to the social media hype, encouraging consumers to stay and take photos there.
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