Home » Country Reports » Malaysia Bubble/Boba Tea Market

Malaysia Bubble Tea Market By Base Ingredient (Black Tea, Green Tea, Oolong Tea, and White Tea), By Flavor (Fruit, Taro, Strawberry, Classic, Coffee, Other), and By Component (Liquid, Tapioca Pearls, Flavor, Creamer, Sweetener, and Others) – Growth, Share, Opportunities & Competitive Analysis, 2018 – 2028

Summary
Table Of Content

Market Overview

The Malaysian bubble tea market, valued at USD 64.57 million in 2022, is anticipated to witness a growth of 6.6% from 2024 to 2028. The bubble tea market in Malaysia has seen extraordinary expansion over the preceding decade, evolving into a mainstream beverage preference amongst the populace, propelled by the influx of international franchises and the emergence of indigenous brands.

The predominant consumer demographic predominantly comprises millennials and Generation Z, who are attracted to the innovative and customizable nature of bubble tea. The market is characterized by intense competition; however, it consistently welcomes new competitors, each striving to deliver distinctive products. Factors such as premium ingredient utilization, the introduction of innovative flavors, and visually appealing presentation serve as differentiation points. Consequently, fueled by consumer preference, product innovation, and the escalating café culture within the nation, robust growth is projected for the Malaysian bubble tea sector in the subsequent years.

Originating from Taiwan in the 1980s, bubble tea, or pearl milk tea, is a delightful concoction of tea, milk, and tapioca pearls, offering a combination of sweet, creamy flavor and intriguing chewy texture. The foundational tea can range from green to black and even include fruit-infused variants. The embedded tapioca pearls, informally known as ‘bubbles’ or ‘boba’, contribute a distinctive chewy contrast to the beverage. Its burgeoning global popularity bears witness to its palatable flavor profile and innovative texture amalgamation.

Having achieved global phenomenon status, bubble tea has permeated various international cultures, evolving into a stylish beverage that garners universal appeal, thereby presenting a lucrative entrepreneurial opportunity. The advent and prevalence of social media have significantly augmented bubble tea’s global visibility, with visually appealing portrayals circulating widely on platforms such as Instagram and TikTok. This increased visibility and ensuing popularity have established bubble tea as a unique and delectable beverage experience.

Within the Southeast Asian region, the consumption statistics reveal a per-person intake of a minimum of four cups of bubble tea monthly, with Thailand leading at six cups per individual and the Philippines closely following with five cups. Loob Holding in Malaysia, proprietor of Tealive, the largest bubble tea brand in Southeast Asia by store count, is contemplating share listing strategies, with considerations to be initiated post the realization of operating 1,000 Tealive stores within the nation by 2024, as per statements by its chief executive.

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Market Trends and Drivers

The bubble tea market in Malaysia is experiencing continual prosperity, influenced by a myriad of pivotal market catalysts and trends. One notable trend fueling the market’s growth is the inventive diversity in flavor profiles. While traditional flavors such as Taro bubble milk tea and Mango green tea persist in popularity, innovative introductions like Cheese foam milk tea and Durian bubble milk tea are attracting those with a penchant for experimental tea concoctions.

Furthermore, the diversification in available toppings is also serving to elevate the overall tea consumption experience. Beyond the conventional tapioca pearls, consumers now have the luxury of choosing from an assortment of toppings like cheese, popping jelly, egg pudding, and chia seeds, thus enabling a high degree of personalization in their beverage choices.

In addition, customer loyalty initiatives are emerging as a formidable strategy for sustaining customer relationships and bolstering sales. Various brands are incorporating rewards mechanisms, such as stamp cards, providing complimentary drinks or merchandise contingent on a predetermined amount of purchases. These incentives not only stimulate spending but also cultivate a sense of community and exclusivity amongst patrons. The insights derived from such loyalty programs facilitate brands in aligning their promotional endeavors with consumer predilections, thereby enhancing customer satisfaction and loyalty.

Furthermore, the impact of word-of-mouth marketing coupled with social media advocacy is formidable. A segment of devoted customers frequently assumes the role of brand proponents, disseminating their brand preferences amongst acquaintances, familial networks, and extensive follower bases on social media channels. This organic promotional approach substantially accentuates brand cognizance and aids in acquiring a new clientele.

To conclude, the accelerators propelling the Malaysian bubble tea market encompass product ingenuity, customer allegiance initiatives, and the pervasive influence of social media and word-of-mouth advocacy. As these trends persist in their evolution, they are poised to amplify the growth trajectory of the bubble tea sector within Malaysia, fostering further innovation and market expansion.

Market Challenges

Despite the various market drivers, the bubble tea industry in Malaysia also faces several challenges. The market is characterized by intense competition, with a multitude of brands vying for consumer attention. Standing out amidst the clutter is a daunting task, requiring constant innovation and unique selling propositions. Additionally, the high sugar content in bubble tea has raised health concerns among consumers, potentially affecting its popularity. Brands are thus tasked with developing healthier alternatives without compromising on taste. Finally, market saturation could potentially hinder growth. With bubble tea shops popping up on almost every corner, there is a risk of supply outstripping demand. Therefore, brands must strategically plan their expansion to avoid cannibalization and ensure sustainable growth.

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Recent industry developments

In September 2023, Malaysian bubble tea brand Xing Fu Tang launched a new line of bubble tea drinks made with fresh milk and fruit. This launch is part of Xing Fu Tang’s efforts to offer healthier and more natural bubble tea options to its customers.
In August 2023, Malaysian bubble tea brand Chatime launched a new collaboration with Malaysian food delivery platform Foodpanda. This collaboration allows Chatime customers to order their favorite bubble tea drinks for delivery through the Foodpanda app.
In July 2023, Malaysian bubble tea brand Tealive launched a new loyalty program that rewards customers for their purchases. This loyalty program is part of Tealive’s efforts to improve customer engagement and retention.

In August 2023, the Malaysian government announced that it would be providing financial assistance to bubble tea businesses that are struggling due to the COVID-19 pandemic. This assistance is expected to help bubble tea businesses stay afloat and protect jobs in the industry.
In July 2023, a study published in the journal Food Research found that bubble tea can be a healthy beverage if consumed in moderation. The study found that bubble tea contains antioxidants and other beneficial nutrients.

Key Company Profiles:

Chatime
Tealive
CoolBlog
Xing Fu Tang
Gong Cha
The Alley
Koi The

Market Segmentations

By Type

Black Tea
Green Tea
Oolong Tea
White Tea

By Flavor

Fruit
Taro
Strawberry
Classic
Coffee
Other

By Region:

East Malaysia
West Malaysia

Chapter 1: Methodology and Scope

1.1 Market Segmentation and Scope

1.2 Market Definition

1.3 Procurement of Information

1.3.1 Purchased Database

1.3.2 Credence Internal Database

1.3.3 Secondary Sources and Third-Party Perspectives

1.3.4 Primary Research

1.4 Analysis of Information

1.4.1 Data Analysis Models

1.5 Market Formulation and Data Visualization

1.6 Data Validation and Publishing

Chapter 2: Executive Summary

2.1 Market Outlook

2.2 Type Outlook

2.3 Flavor Outlook

2.4 Regional Outlook

Chapter 3: Malaysia Bubble Tea Market Variables, Trends, and Scope

3.1 Market Introduction

3.2 Penetration and Growth Prospect Mapping

3.3 Industry Value Chain Analysis

3.3.1 Sales/Retail Channel Analysis

3.3.2 Profit Margin Analysis

3.4 Market Dynamics

3.4.1 Market Driver Analysis

3.4.2 Market Restraint Analysis

3.4.3 Industry Challenges

3.4.4 Industry Opportunities

3.5 Business Environment Analysis

3.5.1 Industry Analysis – Porter’s

3.5.1.1 Supplier Power

3.5.1.2 Buyer Power

3.5.1.3 Substitution Threat

3.5.1.4 Threat from New Entrant

3.5.1.5 Competitive Rivalry

3.6 Roadmap of Malaysia Bubble Tea Market

3.7 Market Entry Strategies

3.8 Impact of COVID-19

Chapter 4: Consumer Behavior Analysis

4.1 Consumer Trends and Preferences

4.2 Factors Affecting Buying Decision

4.3 Consumer Type Adoption

4.4 Observations and Recommendations

Chapter 5: Malaysia Bubble Tea Market: Type Estimates and Trend Analysis

5.1 Type Movement Analysis and Market Share

5.2 Black Tea

5.2.1 Market estimates and forecast (USD Million)

5.3 Green Tea

5.3.1 Market estimates and forecast (USD Million)

5.4 Oolong Tea

5.4.1 Market estimates and forecast (USD Million)

5.5 White Tea

5.5.1 Market estimates and forecast (USD Million)

Chapter 6: Malaysia Bubble Tea Market: Flavor Estimates and Trend Analysis

6.1 Flavor Movement Analysis and Market Share

6.2 Fruit

6.2.1 Market estimates and forecast (USD Million)

6.3 Taro

6.3.1 Market estimates and forecast (USD Million)

6.4 Strawberry

6.4.1 Market estimates and forecast (USD Million)

6.5 Classic

6.5.1 Market estimates and forecast (USD Million)

6.6 Coffee

6.6.1 Market estimates and forecast (USD Million)

6.7 Other Flavors

6.7.1 Market estimates and forecast (USD Million)

Chapter 7: Malaysia Bubble Tea Market: Regional Estimates and Trend Analysis

7.1 East Malaysia Bubble Tea Market Outlook

7.1.1 Market Size and Forecast

7.1.2 Market Share and Forecast

7.1.3 By Type

7.1.4 By Enterprise Size

7.1.5 By Payment Method

7.1.6 By Vertical

7.2 West Malaysia Bubble Tea Market Outlook

7.2.1 Market Size and Forecast

7.2.2 Market Share and Forecast

7.2.3 By Type

7.2.4 By Enterprise Size

7.2.5 By Payment Method

7.2.6 By End-User

Chapter 8: Competitive Analysis

8.1 Key players, recent developments and their impact on the industry

8.2 Key Company/Competition Categorization (Key innovators, Market leaders, Emerging players)

8.3 Vendor Landscape

8.3.1 Key company market share analysis, 2020 (%)

8.3.2 Sourcing and procurement strategy of key players

Chapter 9: Company Profiles

9.1 Chatime

9.1.1 Overview

9.1.2 Product and Service Offerings

9.1.3 Key Financials

9.1.4 Recent Developments

9.2 Tealive

9.2.1 Overview

9.2.2 Product and Service Offerings

9.2.3 Key Financials

9.2.4 Recent Developments

9.3 CoolBlog

9.3.1 Overview

9.3.2 Product and Service Offerings

9.3.3 Key Financials

9.3.4 Recent Developments

9.4 Xing Fu Tang

9.4.1 Overview

9.4.2 Product and Service Offerings

9.4.3 Key Financials

9.4.4 Recent Developments

9.5 Gong Cha

9.5.1 Overview

9.5.2 Product and Service Offerings

9.5.3 Key Financials

9.5.4 Recent Developments

9.6 The Alley

9.6.1 Overview

9.6.2 Product and Service Offerings

9.6.3 Key Financials

9.6.4 Recent Developments

9.7 Koi The

9.7.1 Overview

9.7.2 Product and Service Offerings

9.7.3 Key Financials

9.7.4 Recent Developments

Chapter 10: Appendix

10.1 List of Abbreviations

10.2 Methodology & Scope

10.3 Research Scope & Assumptions

10.4 Data Sources

What are the key flavors of bubble tea included in the Flavor Estimates and Trend Analysis?

The key flavors included in the analysis are Fruit, Taro, Strawberry, Classic, Coffee, and Other Flavors. Each flavor is also provided with market estimates and forecast in terms of USD Million.

How does the report divide the regional estimates and trends of the Malaysia Bubble Tea Market?

The report divides the regional estimates and trends into East and West Malaysia. In each region, the report provides market size and forecast, market share and forecast, and analyses by Type, Enterprise Size, Payment Method, and Vertical or End-User.

What are some of the key companies profiled in the Malaysia Bubble Tea Market report?

The key companies profiled in the report include Chatime, Tealive, CoolBlog, Xing Fu Tang, Gong Cha, The Alley, and Koi The. For each company, an overview, product and service offerings, key financials, and recent developments are provided.

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