Report Overview

Saudi Arabia Bubble Tea Market - Industry Trends & Forecast Report, 2028

Saudi Arabia bubble tea market size is expected to expand at a CAGR of 11.6% during the forecast period between 2022 and 2028. Major growth factors for Saudi Arabia bubble tea market include surging demand for tea and coffee among students and working-class population owing to its cognitive enhancing abilities as well as growing health awareness about beverages containing zero fat and low-calorie contents. Moreover, the growing popularity of bubble tea due to distinct taste, available in various flavors such as mango, peach, and others and customized using syrups which is also expected to increase demand for bubble tea, boosting the market growth. Health experts advise that moderate consumption of such beverages strengthens the immune system and boosts energy as well as rising millennial population and hectic schedules coupled with increasing intake of energy required for proper functioning will fuel the growth of Saudi Arabia bubble tea market during the period in analysis.

Saudi Arabia Bubble Tea Market – Overview

Bubble tea is a Taiwanese tea-based beverage and referred as pearl milk tea or boba juice. Usually, the bubble tea recipes include a tea base mixed with organic product or milk, which is then topped with chewy custard balls (also commonly known as air pockets, pearls, or boba) and organic product jam. Ice-mixed forms are often blended with organic product or syrup to create a slushy texture. There are numerous varieties of the beverage with various ingredients. The two most popular combinations are bubble milk tea with custard and air pocket milk green tea with custard. The air pockets or pearls are tapioca balls derived from cassava root that contains vitamin C and calcium.

Saudi Arabia bubble tea market is expanding rapidly as the demand of bubble tea grows due to its plethora of health benefits and delectable taste. Along with antioxidants, bubble tea provides strength to the body due presence of milk, which is an excellent source of calcium and helps to strengthen bones. As it contains carbs, bubble tea is the principal source of energy for brain and cardiovascular muscles. The beverage contains caffeine, which is an effective stress reliever since it relaxes the body's stiff muscles. Furthermore, bubble tea functions as an immune booster due to its high antioxidant content, which prevents the accumulation of oxidative stress.

Saudi Arabia Bubble Tea Market

Growth Drivers

Increasing disposable income and changing lifestyle

Increasing lifestyle modifications, high disposable income, and growing awareness of the advantages of the beverage all have a favorable impact on Saudi Arabia bubble tea market. Furthermore, the increased availability of bubble tea in various varieties and flavors, such as fruit-flavored tea for the lactose-intolerant population, could drive market growth. Additionally, the trend of millennials toward such drinks has contributed to the increase due to their need for premium tea variants with unique flavor options. Furthermore, problems connected with increased sugar consumption, such as obesity and diabetes, have prompted consumers to shift to sugar substitutes, such as stevia, agave, and honey. These are the natural sweeteners that are mixed to boba tea to replace or minimize sugar consumption. Natural sweeteners are preferred by health-conscious consumers and the diabetic community over sugar. Consumers like such products because of their beneficial features, such as antioxidants, anti-inflammatory, and anti-carcinogenic properties. All these factors are expected to fuel the expansion of Saudi Arabia bubble tea market during the forecast period.

Restraints

Growing preference towards other alternate beverages

Coffee is another widely used beverage that is high in antioxidants, manganese, niacin, potassium, and other minerals. Coffee has been linked to lower the risk of chronic diseases like cancer, type 2 diabetes, stress, and cardiovascular disease. Furthermore, coffee consumption enhances energy, lowering weariness and enhancing alertness due to its high caffeine concentration. Hence, all these benefits make coffee a cheaper alternative for bubble tea, which is expected to hinder market growth during the forecast period.

Impact of COVID–19 on Saudi Arabia Bubble Tea Market

The COVID-19 adversely affected most of the industries including the bubble tea market due to imposition of stringent lockdown norms worldwide, travel and import-export ban, resulting in economic consequences. In addition, the supply chain disruptions have led to manufacturing process delay due to shortage or non-availability of raw materials. The lockdown regulations have jeopardized the livelihoods of millions of small tea farmers worldwide. Furthermore, the closure of cafes, restaurants, farms, and production units to maintain social distancing measures resulted in a reduction of supply and demand as well as travel restrictions and labor scarcity hindered the growth of Saudi Arabia bubble tea market. However, increasing government support for the bubble tea industry is assisting the market’s recovery. In addition, for the development of the products, key players in market employed new safety precautions. The online distribution channel is changing people's purchase behavior providing benefits, such as contactless payment methods, a wide range of products and services, doorstep delivery, and heavy discounts, which aided in market growth during the pandemic and will further accelerate the market growth in the coming post-pandemic period.

Saudi Arabia Bubble Tea Market

Segmental Coverage

Saudi Arabia Bubble Tea Market - By Product

Based on product, Saudi Arabia bubble tea market is divided into Black Tea, Green Tea, and Oolong Tea segment. The black tea segment holds the highest market share due to its authentic flavor, reduces blood sugar level and bad cholesterol. Black tea is derived from camellia sinensis, an antioxidant that benefits in improving metabolism and gut health, increases alertness and boosts energy. The green tea segment holds the second highest share in the market because it contains bioactive compounds that aids in brain functioning, accelerates the fat burning process and decreases the risk of type 2 diabetes.

Saudi Arabia Bubble Tea Market - By Flavor

Based on flavor, Saudi Arabia bubble tea market is segmented into Chocolate, Coffee, and Fruit. The fruit segment is expected to hold the highest market share due to the availability of diverse fruit flavors, such as honeydew, peach, mango, lychee, avocado, plum, strawberry, banana, jackfruit, and lemon, in bubble tea that increase the essence and maintain the pulpy and natural fruit aroma of the bubble tea. The chocolate flavor segment is predicted to be the second largest segment in the market, as it provides diverse benefits when mixed with bubble tea like proper brain functioning, reduces heart diseases, and stress.

Saudi Arabia Bubble Tea Market – By Distribution Channel

Based on distribution channel, Saudi Arabia bubble tea market is bifurcated into Offline and Online segments.

Competitive Landscape

Saudi Arabia bubble tea market is fiercely competitive. Major players in the market include Happy Lemon, Sharetea, Chatime, Bubbles Tree, Bingbox, Tiger sugar, K Pearl Tea, and Happy Bear. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, mergers and acquisitions, collaborations, partnerships, and joint ventures.

Scope of the Report

By Product                                                                                                                                     

• Black

• Green

• Oolong

By Flavor

• Chocolate

• Coffee

• Fruit

By Distribution Channel

• Offline

• Online

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Bubble Tea Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing disposable income and lifestyle changes
      2. Restraints
         1. Lack of awareness about bubble tea
      3. Opportunities
         1. Rising popularity of bubble tea through social media platforms
      4. Challenges
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Bubble Tea Market Overview
   1. Market Size & Forecast by Value, 2018–2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product
         1. Black
         2. Green
         3. Oolong
         4. Others
      2. By Flavor
         1. Chocolate
         2. Coffee
         3. Fruit
         4. Others
      3. By Distribution Channel
         1. Offline
         2. Online
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Bubble Tea Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Happy Lemon
   2. Sharetea
   3. Chatime
   4. Bubbles Tree
   5. Bingbox
   6. Tiger sugar
   7. K Pearl Tea
   8. Happy Bear
   9. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1  Saudi Arabia Bubble Tea Market Segmentation

Figure 2  Saudi Arabia Bubble Tea Market Value Chain Analysis

Figure 3  Company Market Share Analysis, 2021

Figure 4  Saudi Arabia Bubble Tea Market Size, By Value (USD Million), 2018–2028

Figure 5  Saudi Arabia Bubble Tea Market Share, By Product, By Value, 2018–2028

Figure 6  Saudi Arabia Bubble Tea Market Share, By Flavor, By Value, 2018–2028

Figure 7  Saudi Arabia Bubble Tea Market Share, By Distribution Channel, By Value, 2018–2028

List of Table

Table 1       Saudi Arabia Bubble Tea Market Size, By Product, By Value (USD Million), 2018–2028

Table 2       Saudi Arabia Bubble Tea Market Size, By Flavor, By Value (USD Million), 2018–2028

Table 3       Saudi Arabia Bubble Tea Market Size, By Distribution Channel, By Value (USD Million), 2018–2028

Table 4       Happy Lemon Company Overview

Table 5       Happy Lemon Financial Overview

Table 6       Sharetea Company Overview

Table 7       Sharetea Financial Overview

Table 8       Chatime Company Overview

Table 9       Chatime Financial Overview

Table 10      Bubbles Tree Company Overview

Table 11      Bubbles Tree Financial Overview

Table 12      Bingbox Company Overview

Table 13      Bingbox Financial Overview

Table 14      Tiger sugar Company Overview

Table 15      Tiger sugar Financial Overview

Table 16      K Pearl Tea Company Overview

Table 17      K Pearl Tea Company Financial Overview

Table 18      Happy Bear Company Overview

Table 19      Happy Bear Financial Overview