PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886975
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886975
The global oolong bubble tea market continues to gain momentum as consumers worldwide gravitate toward customizable, flavorful, and visually appealing beverages. According to the latest industry assessment, the market was valued at USD 463.63 million in 2024, is projected to increase to USD 491.53 million in 2025, and is expected to reach USD 788.33 million by 2032, growing at a strong CAGR of 6.98% from 2025 to 2032. Asia Pacific dominated the market with a 43.48% share in 2024, supported by rising disposable incomes, an expanding young consumer base, and the rapid spread of bubble tea franchises.
Market Overview
Oolong bubble tea, created from oolong tea blended with milk and chewy tapioca pearls, has emerged as one of the fastest-growing segments within the global bubble tea industry. Its rise is strongly associated with the beverage's widespread social media presence, cultural integration, and ability to deliver personalized flavor experiences. Brands such as Chatime Group, Gong Cha, Tiger Sugar, Quickly, and Coco Fresh Tea & Juice are continuously expanding across international markets, contributing to rapid global adoption.
A key driver behind this growth is the beverage's popularity among millennials and Gen Z consumers, who prefer trendy, photogenic, and accessible drinks. The combination of flavor innovation, cafe culture, and the rise of ready-to-drink (RTD) formats further strengthens demand for oolong bubble tea across both developed and emerging markets.
Market Trends
Celebrity and artist collaborations are becoming a significant trend shaping the oolong bubble tea landscape. Brands are partnering with influencers and creative designers to launch limited-edition beverages and packaging that resonate with young consumers. For example, in April 2025, Orbitel International partnered with four Taiwanese artists to launch its oolong bubble tea line at Taiwan's cultural and artistic bubble tea exhibition. These promotional strategies not only increase brand visibility but also reinforce bubble tea's position as a lifestyle beverage.
Market Drivers
Growing Global Franchise Expansion
The expansion of bubble tea franchises worldwide plays a major role in propelling the market. The beverage's customizability-allowing consumers to choose toppings, sugar levels, tea strengths, and flavor combinations-has significantly boosted its global appeal. International brands such as Gong Cha are executing rapid expansion strategies, including the opening of 90 outlets across the Americas in 2023 and a plan to open 130 additional stores in 2024. This growing franchise footprint strengthens global accessibility and drives rising consumption.
Lifestyle and Preference Shifts
Consumers, particularly younger demographics, are shifting toward beverages perceived as healthier alternatives to carbonated drinks. Oolong tea offers functional benefits, including antioxidants and lower caffeine levels compared to coffee. This shift toward healthier beverage choices, coupled with curiosity for Asian flavors, supports broader market penetration.
Market Restraints
The rising demand for substitute beverages such as RTD coffee, RTD tea, smoothies, and fruit juices is expected to limit market growth to some extent. In the U.S., 67% of adults drink coffee daily, indicating strong competition from well-established beverage categories. The increasing innovation in RTD coffee, especially among adults seeking convenience and taste familiarity, may divert consumers from bubble tea products.
Market Opportunities
The global shift toward healthier and more functional beverages presents new opportunities within the oolong bubble tea segment. Demand is rising for gluten-free, sugar-free, low-calorie, and fruit-enhanced oolong bubble tea. Brands are investing in innovative formulations to match evolving consumer expectations. In July 2024, Truedan U.K. launched an RTD Lychee Oolong Tea, highlighting the growing demand for flavorful, healthier, and ready-to-drink oolong variations.
By Flavor
Fruit-flavored oolong bubble tea dominated the market in 2024. Popular flavors such as mango, strawberry, lychee, and mixed berries attract younger consumers due to their vibrant taste and Instagram-friendly appearance. Chocolate-flavored oolong bubble tea is also gaining traction thanks to its rich, dessert-like taste and broad appeal.
By End-Use
The commercial segment held the largest share in 2024, driven by cafe culture, franchise expansion, and mall-based consumption. The household segment, though smaller, is projected to grow at the fastest rate as RTD oolong bubble tea products gain popularity on online retail platforms.
Asia Pacific (Market Size 2024: USD 205.69 million)
Asia Pacific remains the global leader, supported by strong cultural roots, increasing disposable incomes, and extensive promotional strategies by major brands. China leads the region, driven by rising health awareness and continuous product innovation.
North America
Consumers in the U.S. are increasingly shifting from sugary carbonated beverages toward tea-based drinks. Local ingredient sourcing and boba innovations are strengthening regional demand.
Europe
Youth-driven adoption, openness to Asian cuisine, and preference for visually appealing beverages support growth across countries like Germany, France, Italy, and the U.K.
South America & Middle East & Africa
Growing tourism, food-service expansion, and exposure to global flavors are driving increased consumption in Brazil, UAE, and South Africa.
Conclusion
With the global market expanding from USD 463.63 million in 2024 to a projected USD 788.33 million by 2032, oolong bubble tea remains one of the most dynamic beverage categories worldwide. Driven by flavor innovation, franchise expansion, and cultural integration, the industry is expected to maintain strong growth in the coming years.
Segmentation By Flavor
By End-Use
By Geography