Canada Bubble Tea Market Size, Share & COVID-19 Impact Analysis, By Type (Black Tea, Green Tea, Oolong Tea, and White Tea) and By Flavor (Fruit Flavor, Original Flavor, Chocolate Flavor, Coffee Flavor, and Others), 2023-2030

The Canada bubble tea market size is projected to grow at a CAGR of 6.90% during the forecast period.

Canada has seen a significant rise in bubble milk tea consumption in recent years. Several players are focusing on expanding the boba tea stores, further contributing to the market's growth. The wide availability of flavored milk teas and the rising preference for experiencing new products & tastes among consumers in the country also increase the consumption of bubble tea in the country.

LATEST TRENDS

Innovative Hollywood Character-themed Product Launches to Boost Sales 

Rising innovative advertisements and celebrity endorsements taken by the players in the market are shaping the bubble milk tea market in Canada. Consumers tend to fascinate more toward theme-based products. Therefore, several prominent boba tea manufacturers are adopting partnership strategies to launch new products with Hollywood-themed characters. For instance, in September 2022, Kung Fu Tea, an American bubble tea beverage franchise, partnered with universal pictures home entertainment and illumination entertainment to celebrate the launch of the movie Minions: The Rise of Gru. The partnership included Minions-inspired limited-time tea-based drinks and specially designed Minions cups and lids.

DRIVING FACTORS

Availability of a Wide Range of Flavors to Attract Users

Bubble tea is gaining immense popularity owing to its distinct taste and availability of numerous flavors such as black tea, green tea, oolong tea, and white tea. Consumers' interest in the popularity of tea-based fruity beverages and the willingness to experiment with novel flavors captivate their attention, which fuels the market growth. Furthermore, more people have been drinking tea outside their homes, leading to out-of-home consumption, which necessitates manufacturers to develop premium quality bubble milk teas by keeping consumer demands in mind. For instance, in November 2021, Mo’Cha Bubble Tea, serving quality bubble milk tea in Canada, opened its new boba tea shop in Orangeville, Canada. The rising out-of-home consumption and ease in accessibility of teas led the company to expand its business. The company offers a variety of signature drinks and desserts, smoothies, fruit green tea, Mo’Cha lattes, and varied flavors of bubble teas.

RESTRAINING FACTORS

Boba Shortages Affecting the Bubble Tea Business

Canada is one of the prominent consumer of pearl milk tea or boba tea and thus requires a constant import of tapioca pearls, or boba, from other countries. Most Canadian wholesalers get bubble tea supplies from Asia, particularly Taiwan, where the famous drink originated. Since the manufacturers depend on importing raw materials, several challenges in the supply chain, fluctuations in trade laws and tariff rates impact the availability of raw materials and their prices. The country experienced a significant supply shortage due to the Suez Canal blockage in 2021. The bubble milk tea shops have been affected for several weeks, leading to stores running out of supplies, including tapioca pearls. Such issues may negatively impact the market growth.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, the market depicts the presence of established and emerging pearl milk tea companies. The rising popularity of bubble tea and consumers' willingness to pay a high price for healthy foods & beverages surge the product demand. Furthermore, new boba tea concepts have been emerging in the country, which helps players to grab the booming market opportunities. For instance, in March 2022, Benkei Hime, Toronto Bubble Tea and Lifestyle Brand planned to open a CF Toronto Eaton Centre in Markham. The company would offer boba tea drinks with fashionable lifestyle merchandise. The new concept would bring new market opportunities for pearl milk tea in the country.

Some other companies with a considerable presence in the Canadian market include the Alley, Chatime Canada, Happy Lemon, Kung Fu Tea and others. The key players have adopted strategies in order to expand their businesses in different locations. For instance, in November 2021, Jollibee Foods Corporation (JFC) announced the acquisition of most of a share stake in Taiwanese boba tea café operator Milkshop International. The company acquired around 51% stake in the organization for USD 12.8 million. The majority of Milkshop’s outlets are in Taiwan, with 231 shops, while it has 12 outlets in Singapore, four in Hong Kong, two in Melbourne, Australia, and another two in Vancouver, Canada.

LIST OF KEY COMPANIES PROFILED:

• Van Cheong Tea Inc. (Toronto)


• Chatime Canada (Toronto)


• The Alley (Markhem)


• Mo’Cha Bubble Tea (Orangville)


• Onezo Tapioca (Toronto)


• Happy Lemon (Scarborough)


• Gotcha Bubble Tea (Toronto)


• Tealive (Ottawa)


• Kung Fu Tea (Toronto)


• Boba Tea Protein (Canada)

KEY INDUSTRY DEVELOPMENTS: 

• December 2022 – Tealive, a Malaysian bubble tea brand, opened its first store in Ottawa, Canada. The company focused on expanding its boba tea in the North American market and eventually expanded into the U.S.


• October 2020 – Chatime, a Taiwanese global franchise teahouse, partnered with Kellogg’s Canada to launch three unique bubble tea flavors inspired by cereal products, including Corn Pops, Froot Loops, and Frosted Flakes.

REPORT COVERAGE

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The report provides a detailed analysis of the market. It focuses on key aspects such as an overview of technological advancements, the increasing popularity of flavored teas in Canada, and pricing analysis. Additionally, it includes new product launches, key industry developments such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market segments, Canada bubble tea market share, and trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation