Milk Tea Market Size | Global Forecast To 2034

MILK TEA MARKET OVERVIEW

The global Milk Tea Market size was valued approximately USD 22.53 Billion in 2025 and will touch USD 39.82 Billion by 2034, growing at a compound annual growth rate (CAGR) of 5.86% from 2025 to 2034.

Milk Tea is a globally popular drink that combines tea with milk or creamer, often sweetened and served with chewy toppings like boba pearls. Originating from Taiwan's bubble tea, it now has many regional twists but faces health concerns over sugar levels, pushing demand for low-sugar and plant-based alternatives.

IMPACT OF KEY GLOBAL EVENTS

“AI-Driven Personalization in the Milk Tea Industry”

AI is revolutionizing the milk tea market with data-driven personalization. It helps brands customize flavors, sugar levels, and toppings based on customer preferences, enhancing experience and sales. AI also improves inventory management and demand forecasting, reducing waste and optimizing operations.

LATEST TREND

”Premiumization & Artisanal Ingredients”

High-end milk tea brands are using single-origin teas (e.g., Assam, Tieguanyin) and house-made toppings (brown sugar boba, cheese foam) to justify premium pricing ($6-8/cup). Limited-edition collaborations with luxury brands (e.g., TWG Tea x bubble tea) and aged tea bases (fermented pu’er) cater to gourmet audiences.

MILK TEA MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Bagged Product, Disposable Paper Cups Products and Other.

Bagged Product: Packaged milk tea is a tea mixture that can be made at home by adding hot water or milk. It is popular because it is simple, has a long shelf life and is cheap. This market is growing, especially for busy people and those who stay away from fresh milk tea shops. As more and more people enjoy DIY drinks, this segment will continue to expand.
Disposable Paper Cups Products: This category is RTD milk tea in paper cups, often sold in bubble tea shops, convenience stores, and vending machines. It is popular because it is convenient and is the first choice of urban consumers. With food delivery and on-the-go drinking up, this segment keeps growing. But, worries about single-use cups might push for eco-friendly options.
Other: The "Other" category covers unique milk teas like bottled, frozen, and specialty ones. Brands here keep innovating with plant-based milk, healthy ingredients, and premium blends. With consumers wanting more variety and healthier choices, this segment could grow big, especially in high-end and niche markets.

By Application

Based on application, the global market can be categorized into Tea Shop, The Mall, Retail Store and Other.

Tea Shop: Tea shops are the main place for freshly made milk tea, with tons of flavors, toppings, and custom options. They're popular 'cause people love fresh drinks and the social vibe. Franchise chains and boutique brands keep growing, but competition's tough, so shops need to keep innovating to keep customers.
The Mall: Shopping malls are a great place for milk tea shops, as many people may make impulse purchases after passing by. Brands locate kiosks and stores there to attract shoppers who need a quick drink. This segment is doing well, especially in urban areas, but if the economy turns down or more people shop online, mall sales could suffer in the long run.
Retail Store: Retail stores sell packaged milk tea, like bottled, canned, and instant, for those who want convenience. This segment's growing fast 'cause people love ready-to-drink and at-home options. Supermarkets, convenience stores, and online shopping all help it expand, making it a big market growth driver.
Other: The "Other" category covers vending machines, online delivery, and specialty channels. Online milk tea sales are up, especially among young people who love convenience. This segment's got big potential as technology and shopping habits change.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Growing Popularity of Bubble Tea Culture”

Bubble tea originated in Taiwan. It is popular all over the world, especially among young people. Social media and Internet celebrities have made bubble tea extremely popular. It has become a way of life. People like to be able to customize bubble tea with a choice of flavors, sugars and ingredients. Bubble tea is becoming more and more popular as more and more people start looking for interesting and unique drinks. More and more bubble tea shops are opening around the world, and new products are constantly flooding the market. Therefore, bubble tea is an important reason for the booming global milk tea market.

Restraining Factor

”Health Concerns and Changing Consumer Preferences”

Nowadays, people are increasingly worried about their health, which has led to a slowdown in the milk tea market. Consumers want healthier drinks with less sugar and fewer artificial ingredients. Regular milk tea is high in sugar and calories, making it unpopular with health experts and consumers alike. In addition, more and more people are choosing plant-based diets and dairy-free beverages. That means milk tea brands need to change. They should introduce healthier, lower sugar, plant-based options. Otherwise, they will lose customers and opt for healthier drinks.

Opportunity

”Digitalization and E-Commerce Growth”

Digitalization and e-commerce are good opportunities for the milk tea market. With online platforms and food delivery services, milk tea brands can reach more people. Consumers can order their favorite milk tea easily, whether they’re at home or out and about. E-commerce also makes it simpler to sell instant milk tea in packages. Now, these products are available all over the world. Digital marketing on social media helps milk tea brands get noticed, especially by young people who are good with technology. If milk tea businesses use digital strategies, they can attract more customers, boost sales, and interact better with their buyers.

Challenge

”Balancing Traditional and Innovative Flavors”

The challenge facing the milk tea market is that brands need to meet the tastes of different customers by integrating traditional and new tastes. Classic milk tea and bubble tea are still super popular. But more and more people want new, out - of - the - ordinary flavor combos like fruit - infused teas, herbal mixes, and strange toppings. Brands have to make sure their drinks still taste like the ones loyal customers love. At the same time, they need to come up with new flavors to draw in more daring consumers. Finding this balance is really important. It helps brands keep a wide range of customers, stay innovative, and keep up with the latest trends in the drink market.

MILK TEA MARKET REGIONAL INSIGHTS

North America

The milk tea market’s booming in North America, especially in the US and Canada. Bubble tea and other flavored teas are popular with young people. That’s why milk tea chains and independent stores are popping up all over cities. People want different flavors, ways to customize their drinks, and high - quality ingredients. Everyone’s into making drinks that look good on Instagram too. Compared to coffee or soft drinks, milk tea’s still a small part of the market. But more people are looking for new drink options, so the demand’s likely to keep growing. Also, online food delivery platforms are helping boost milk tea sales.

Europe

In Europe, the milk tea market’s smaller but growing steadily. It’s especially popular in cities with lots of Asians, like London, Paris, and Berlin. Asian culture and bubble tea’s rising popularity are fueling this trend. European consumers love how new and customizable milk tea is. As more people learn about it, there are more milk tea stores and brands. But the market has challenges. It has to compete with well - known coffee and juice markets, and there are cultural barriers in some places. Even so, since people are more interested in Asian food and drinks, the milk tea market in Europe should keep growing.

Asia

Asia's where milk tea started, and it's big there, with Taiwan, China, and Japan leading the way. Taiwan's famous for bubble tea, and it's still super popular with lots of local twists. In China, milk tea's a must-have in cities, with tons of local and foreign chains offering all sorts of choices. Other Asian countries like South Korea, Thailand, and the Philippines are also seeing big growth. More middle-class people, urbanization, and trendy drinks are boosting the market. So, Asia's gonna keep ruling the global milk tea market, both in making and drinking it.

KEY INDUSTRY PLAYERS

”Key Industry Players Focus on Product Innovation and Environmental Protection”

The milk tea market's competitive, with lots of brands fighting for customers. Big players are expanding fast to keep up with demand, and they stand out with unique flavors and customizable options. New brands are joining in, making it even tougher. They're all innovating in packaging, ingredients, and how they connect with customers. Plus, they need to adapt to healthier, sustainable choices.

List of Top Milk Tea Market Companies

Lipton(Unilever)
Nestle
Uni-President
Greenmax
Shih Chen Foods

KEY INDUSTRY DEVELOPMENTS

On January 18, 2021, California, United States-based foodservice provider Karat by Lollicup (a manufacturer and distributor known for its bubble tea) announced the successful acquisition of a distribution center in Hawaii, United States. The company owns 5 other distribution centers across the US in Washington, New Jersey, Texas, South Carolina, and California.

On January 13, 2021, Tata consumer products launched two new products named Tata Tea Tulsi Green and Tata Tea Gold Care and reformulated its existing Tetley Green Tea with added Vitamin C. These new offerings are developed to improve the body’s immunity and enhance overall wellness.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The global milk tea market's growing fast 'cause people love trendy, customizable drinks. Bubble tea's popular, international chains are expanding, and ready-to-drink options are everywhere in Asia, North America, and Europe. Food delivery apps and online ordering make it easier to get, too. But, health and sustainability are big now, so brands are using healthier ingredients and eco-friendly packaging.

In the future, the market will keep changing with new trends like plant-based milk, functional ingredients, and AI-powered customization. With urbanization and increasing disposable income, the potential of the growing market is big. Brands that innovate, care about the environment, and use digital tools will stay ahead. As tastes change, the industry will keep growing, with more focus on healthy and high-end options.