The U.S. bubble tea market size was valued at USD 496.75 million in 2024. The market is projected to grow from USD 531.69 million in 2025 to USD 865.87 million by 2032, exhibiting a CAGR of 7.22% during the forecast period.

The growing popularity of milk tea and coffee as nootropic beverages among millennials, paired with the busy lifestyles of individuals, is a key driver for the market expansion. The rising consumption of flavored bubble tea paired with the availability of products in the vegan category will pave the way for market growth. The U.S. is expected to emerge as a lucrative market owing to the presence of key market players and the growing popularity of pearl milk tea.

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Segments

Black Tea Segment to See Highest Demand During the Forecast Period

The market offers several types of tea, including black tea, green tea, oolong tea, and white tea. The black tea segment is expected to dominate the U.S. bubble tea market. According to the International Journal of Tea Science, black tea extracts provide anti-obesity and hypolipidemic effects. This growing health awareness has prompted manufacturers to introduce new products, fueling demand for black tea-based options.

Fruit Flavor Segment to Capture the Largest Market Share from 2023 to 2030

The market is divided into various flavor categories, such as fruit, original, chocolate, and coffee flavors. The U.S. pearl milk tea market is forecasted to be largely dominated by the fruit flavor category. The wide range of fruit flavors offered in bubble tea, including strawberry, green apple, passion fruit, and mango, has significantly contributed to the sector’s growth.

Report Coverage

The report provides:

  • Major growth drivers, constraints, opportunities, and challenges in the market.
  • Detailed insights into regional developments.
  • A list of key industry players.
  • Key strategies implemented by market participants.
  • Recent developments in the industry, such as product launches, partnerships, mergers, and acquisitions.

Drivers and Restraints

Consumer Shift Toward Better-for-You Beverages to Boost Growth

U.S. consumers, who have traditionally relied on caffeine-laden drinks, are gradually turning to bubble tea. Although bubble tea is a sugary beverage, its growing popularity is driven by an increasing demand for low-sugar options that provide health benefits. The U.S. Department of Agriculture (USDA) estimates that a 16 oz cup of bubble tea contains 40g of sugar, exceeding the recommended daily limit, which raises concerns about health impacts. This shift toward healthier, low-sugar beverages is driving market growth.

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Country Insights

Rising Demand for Lactose-Free Products Fuels U.S. Bubble Tea Market Growth

The U.S. has seen a rise in consumers self-diagnosing lactose intolerance, leading to a greater demand for lactose-free products. According to the U.S. National Library of Medicine, approximately 30 million adults in the U.S. experience symptoms of lactose intolerance by age 20. In response, producers are offering vegan bubble tea options. For example, Peet’s Coffee launched a vegan boba tea in June 2022, which includes three varieties: brown sugar cold brew oat latte, iced brown sugar matcha latte, and brown sugar milk tea.

Competitive Landscape

Franchise Model Adopted by Key Players to Gain Market Edge

The bubble tea category in the U.S. is expanding rapidly, with a growing interest in trying different flavors. This growth has led to intense competition, prompting many manufacturers to adopt the franchise model. For example, in March 2022, Gong Cha, a multinational beverage franchise, announced the signing of three new master franchisees and its plan to expand rapidly across the U.S. by opening 60 new locations in Louisiana, Colorado, and Michigan. This expansion strategy leverages the brand’s global appeal and the rising popularity of bubble tea in the U.S.

List of the Companies Profiled in the Report:

  • Quickly (U.S.)
  • Tiger Sugar (U.S.)
  • Gong Cha (U.S.)
  • Kung Fu Tea (U.S.)
  • Sharetea (U.S.)
  • The Boba Guys (U.S.)
  • Tapioca Express (U.S.)
  • Bubbles Tea & Juice Company (U.S.)
  • Brew Tea Bar (U.S.)
  • Happy Lemon (U.S.)

Key Industry Development

  • November 2022: King Feng Chuen Enterprise Co., Ltd., a supplier of bubble tea raw materials, announced its expansion across the U.S.

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