Report Overview
Increasing popularity of boba-based food and beverages, growing emphasis in research and development, increasing stringent halal labelling and food and beverages certification norms are projected to propel the expansion of GCC Bubble Food and Beverages Market at a steady growth rate during forecast period 2022 and 2028.
GCC Bubble Food and Beverages Market - Industry Trends & Forecast Report, 2028
GCC (Gulf Cooperation Council) Bubble Food and Beverages Market size is expected to expand at a significant CAGR of 13.4% during the forecast period between 2022 and 2028. Major growth factors for GCC bubble food and beverages market include increasing popularity of boba-based snacks and drinks, growing health awareness among consumers, and stringent halal labeling and certification norms. The increasing demand for bubble food and drinks from millennials and generation Z and their growing preference for convenience, high-quality standards, and healthy beverages contribute to the market expansion. In addition, deepening social media penetration and the availability of boba as well as bubble-based snacks and beverages in various combinations of taste and texture, sauces, and toppings and flavors could further boost the growth of GCC bubble food and beverages market during the period in analysis.
Bubble Food and Beverages Market - Overview
Bubble tea, a Taiwanese tea-based beverage, was originated in Tainan and Taichung. It is also known as pearl milk tea, boba juice, bubble milk tea, or simply boba or boba tea. Most of bubble tea formulations commence with a tea base that has been mixed with fruit or milk along with chewy tapioca balls, sometimes known as bubbles, pearls, boba, and fruit jelly. Ice-blended drinks often have a slushy consistency and incorporate fruit or syrup. The beverage is available in a range of flavors and comprises a variety of ingredients. Tapioca-infused bubble milk tea and tapioca-infused bubble milk green tea are the two most popular tastes.
GCC Bubble Food and Beverages Market
Growth Drivers
Increasing availability of varieties in bubble food and beverages
Green jasmine, fruit-flavored, and black tea are among the varieties available at the market. Fruit-flavored tea comes in a variety of flavors, such as sweetened fruit drinks and cream drinks with fruit taste. Lactose-intolerant people can drink black, green jasmine, and other tea kinds. As different boba tea kinds are available, the consumer have diverse options. This marketing strategy helps to bring in more customers. Companies are also developing novel flavors and compositions to attract customers.
GCC bubble food and beverages market is booming due to growing popularity of boba-based snacks and drinks. Effective advertising campaigns and celebrity endorsements have also contributed to the growth of bubble food and beverages market in the GCC region. The development of several new flavors and combinations and the increasing demand for a variety of beverages among youngsters are expected to provide lucrative growth opportunities for major players in GCC bubble food and beverages market.
Restraints
Spurring demand for alternative beverages
The surging demand for alternative beverages, such as coffee, is expected to restrain the growth of GCC bubble food and beverages market. As coffee is a ready-to-drink that suits the consumers with active lifestyles, it is a source of energy booster. In addition, several coffee varieties, such as cold brew and nitro cold brew, are available that suit every tastes. Furthermore, the availability of diverse coffee flavors, such as butterscotch, hazelnut caramel, and vanilla, is also anticipated to limit the growing demand for bubble food and beverages in countries across the GCC region.
Impact of COVID-19 on GCC Bubble Food and Beverages Market
COVID-19 pandemic adversely affected GCC bubble food and beverages market, due to the imposition of strict lockdown controls on restaurants, farms, and processing plants to maintain safety precautions and social distancing. Lack of staff and fewer consumer visits to coffee shops resulted in transportation delays and the operation of both supply and demand for consumption points came to a halt. Therefore, COVID-19 pandemic affected the growth of GCC bubble food and beverages market.
GCC Bubble Food and Beverages Market
Segmental Coverage
GCC Bubble Food and Beverages Market - By Product
Based on product, GCC bubble food and beverages market is divided into Desserts, Bubble Tea, and other segments. The desserts segment dominated the market in 2021 because of introduction of sweet varieties prepared with boba waffles, shaved ice desserts, and boba wheel pie. In addition, the chefs in high-end restaurants and cafes use boba pearls to enhance the flavors of iced and heated sweets for customers.
GCC Bubble Food and Beverages Market - By Source
Based on source, GCC bubble food and beverages market is segmented into Tapioca-based, Bursting Bubble, and others. The Tapioca-based food and beverages segment held the highest market share in the market due to health benefits. Tapioca, produced from the cassava root, is a fundamental ingredient in the production of tapioca boba pearls. The soaring demand for vegan food and beverages is driving up demand for tapioca-based boba that has been blended with a variety of natural ingredients.
GCC Bubble Food and Beverages Market - Distribution Channel
Based on distribution channel, GCC food and beverages market is segmented into Off-trade and On-trade distribution channels. The off-trade segment holds a higher market share in the GCC food and beverages market by distribution channel. The off-trade segment includes online stores, hypermarkets, grocery stores, and other retailers. Due to the deepening penetration of smartphones and internet, consumers have access to online businesses that market their products to all consumer touchpoints. This ongoing trend is expected to propel the growth of off-trade distribution channel segment during the forecast period.
GCC Bubble Food and Beverages Market - By Country
Geographically, GCC bubble food and beverages market covers major Gulf countries such as Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain.
Competitive Landscape
GCC bubble food and beverages market is fiercely competitive. Prominent players in the market include Del Monte Foods, Happy Lemon, Sharetea, Zero Degrees, Booba, The Bubble Tea, TabiBoba Caf?, Go-Ssip, iTea Caf?, and Chobcha. 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.
Recent Developments
In January 2021 - DKSH entered into an agreement with FES (Vietnam) to market and supply the signature Hillway instant bubble tea brand in Thailand. Consumers can purchase the brand's items at local supermarkets and convenience stores.
By Product
Desserts
Bubble Tea
Others
By Source
Tapioca-based
Bursting Bubble
Others
By Distribution Channel
Off-Trade
On-Trade
By Country
Saudi Arabia
UAE
Qatar
Kuwait
Oman
Bahrain