Australia Bubble Tea Market Size, Share, Growth Analysis Report and Forecast Trends 2025-2034

Australia Bubble Tea Market Trends

The Australia bubble tea market is flourishing, driven by heightened consumer interest that results in increased sales and expansion. A wide variety of flavours and toppings caters to different tastes while enhancing cultural appreciation. Bubble tea shops act as social hubs for gatherings, and their vibrant, Instagram-worthy drinks greatly enhance social media engagement, which impacts the Australia bubble tea market growth. In September 2023, the bubble tea brand T4 held a festival in Melbourne to celebrate its latest flavours and engage with the community. The event included tastings, interactive workshops, and live music, highlighting T4's dedication to innovation and its rising popularity among Australian consumers.

The Australian bubble tea market thrives on customisation, enabling consumers to tailor their drinks for enhanced satisfaction. The availability of low-calorie and organic options is influencing the Australia bubble tea market dynamics and trends as it attracts health-conscious customers. The industry is further strengthened by franchise opportunities that entice entrepreneurs, while shop expansions generate jobs in retail and food service. Ongoing innovation in product development keeps the market competitive and vibrant. In June 2023, Gong Cha launched a limited-edition series featuring seasonal fruit flavours like Mango and Lychee in its Australian stores. The promotion was extensively shared on social media, creating excitement, and attracting bubble tea enthusiasts seeking refreshing summer options.

Australia Bubble Tea Market Growth

The Australia bubble tea market is thriving as businesses focus on local sourcing, which supports local economies and promotes community engagement through event participation. Seasonal promotions and limited-time offers create excitement and encourage repeat visits, especially among younger customers who drive sales and foster brand loyalty. Additionally, shops enjoy diversified revenue streams by offering related products like snacks and merchandise, further boosting overall sales, and contributing to the Australia bubble tea industry revenue. In January 2022, the well-known brand Chatime expanded its offerings in Australia, introducing new flavours such as Brown Sugar Milk Tea and Taro Latte. This launch reflected the increasing demand for unique and innovative bubble tea options, appealing to both loyal fans and new customers eager to explore these exciting combinations.

The Australia bubble tea market is evolving, driven by increasing interest in functional drinks that appeal to health-conscious consumers. Exposure to global trends encourages innovation and maintains a dynamic market. Many shops provide convenient delivery and takeaway options for busy lifestyles, boosting demand of the Australia bubble tea market. In September 2023, the bubble tea brand Tealive celebrated its grand opening in Perth, featuring a menu with localised flavours such as Australian Macadamia. The event attracted large crowds, emphasising the brand's dedication to engaging with the local community and expanding its presence in Australia.

Australia Bubble Tea Market Insights

• According to industry reports, the dairy sector in Australia is valued at USD 3 billion and employs 42,000 Australians, meeting the daily needs of millions.
• As noted by ABARES in 2021, Australia produced around 1,500 tonnes of tea, mainly sourced from northern New South Wales and Queensland.
• USDA statistics show that Australia's domestic coffee consumption totalled 2,135,060 kilograms during the 2022/23 period.
• Green tea is anticipated to see a CAGR of 11.2% throughout the forecast period.
• Strawberry flavours are projected to grow at a CAGR of 11.6%, while classic flavours are expected to grow at 9.7% during the forecast period.

Industry News

September 2024

Nestlé’s Allen’s lolly brand partnered with leading bubble tea franchise Chatime to release a range of limited-edition flavours inspired by its Party Mix lollies. This collaboration, arranged by brand extension agency Asembl, was available for a limited time exclusively in Chatime stores across Australia, featuring flavours like Pineapples, Milk Bottles, and Bananas in over 170 T-Breweries nationwide.

August 2024

Premium bubble tea franchise CoCo Bubble Tea initiated a significant expansion of franchise opportunities and support in Australia, which was featured at The Franchising & Business Opportunities Expo in Melbourne. CoCo provided single-store franchising options across the country, along with a limited-time promotion for aspiring entrepreneurs and bubble tea enthusiasts to join its extensive network.

Australia Bubble Tea Market Drivers

Health-Conscious Offerings

The Australia bubble tea market is increasingly prioritising health-conscious options. Consumers are looking for lower-calorie choices and organic ingredients, prompting shops to offer functional drinks enriched with vitamins and natural sweeteners. This trend in the Australia bubble tea market appeals to a growing demographic focused on wellness, encouraging brands to develop healthier recipes. Consequently, bubble tea shops are broadening their menus to feature fruit teas, lower sugar options, and dairy-free alternatives, attracting health-conscious customers while preserving the indulgent experience of bubble tea. In May 2024, Australian scientists developed a healthier alternative to traditional bubble tea pearls by blending beta-glucan, a soluble fibre from oats, with tapioca pearls, effectively reducing the drink's sugar content, as reported by the Australian Export Grains Innovation Centre (AEGIC).

The Australia bubble tea market is flourishing, driven by flavour innovation as a prominent trend. Brands are continually experimenting with new and distinctive flavour combinations to attract adventurous consumers. Seasonal and limited-edition flavours, such as exotic fruits or desserts, are growing in popularity, generating excitement, and encouraging repeat visits. This emphasis on innovation not only sets brands apart from their competitors but also boosts customer engagement through social media campaigns, where visually appealing drinks are widely shared. The introduction of local flavours and ingredients further enhances the offerings, appealing to a diverse audience and expanding opportunities in the Australia bubble tea market. In July 2024, Gotcha Fresh Tea collaborated with Hello Kitty to celebrate her 50th anniversary. The campaign featured two Hello Kitty-inspired bubble tea flavours and a limited-edition range of merchandise, including Melon Magic Matcha and Bubba Grape Blast, both crafted with fresh milk and various toppings.

Opportunities in the Australia Bubble Tea Market

Digital Engagement and Delivery

The Australia bubble tea market is benefiting from the shift towards digital engagement, which is transforming the industry. Many brands are enhancing their online presence through social media, connecting with customers via interactive content and promotions. The rise of food delivery services has also driven demand for convenient takeaway options, allowing consumers to enjoy bubble tea at home. Online ordering platforms and apps streamline the purchasing process, catering to busy lifestyles. This digital focus not only boosts sales but also fosters brand loyalty, as customers appreciate the convenience and accessibility offered by their favourite bubble tea shops, positively impacting Australia bubble tea market revenue. The ABS projected that Australia’s e-commerce market would reach US$37.10 billion by 2024, with an annual growth rate of 9.36% from 2024 to 2029. Additionally, e-commerce user penetration is expected to rise from 65.3% in 2024 to 84.4% by 2029.

Market Restraints

The Australia bubble tea market faces several restraints. Health concerns over high sugar and calorie content may deter health-conscious consumers. Stricter regulations complicate sourcing and production, while intense competition makes it hard for new entrants. Supply chain issues, especially with imported ingredients like tapioca pearls, can disrupt availability. Additionally, shifts in consumer preferences towards healthier beverages limit growth, and economic downturns can lead to reduced discretionary spending.

Cultural differences may affect acceptance, and seasonal fluctuations can impact sales. In saturated urban markets, growth opportunities become limited, and increasing environmental concerns about plastic waste may further push consumers away from bubble tea, particularly when served in non-sustainable packaging.

Australia Bubble Tea Market Share

By Type Insights

The Australia bubble tea market is benefiting from the advantages of oolong tea. Rich in antioxidants, it promotes overall health and aids in weight management, appealing to health-conscious consumers. Its distinctive flavour, lying between green and black tea, offers a variety of options for adventurous drinkers. With moderate caffeine levels, oolong provides an energy boost without jitters, thereby increasing demand in the Australia bubble tea market. Its versatility also allows it to pair well with different ingredients, enhancing the overall bubble tea experience with various toppings and sweeteners. Oolong is anticipated to see a CAGR of 9.8% throughout the forecast period. In September 2024, Starbucks collaborated with Hello Kitty to introduce Teavana® Zen Clouds Oolong Tea, which reflects Hello Kitty’s cheerful spirit with a delightful sweetness. The chunky apple sauce adds an engaging texture, evoking memories of the first autumn breeze.

In the Australia bubble tea market, the low caffeine content of white tea makes it ideal for those who are sensitive to caffeine, boosting its popularity. Celebrated for its high antioxidant levels, it appeals to health-conscious consumers seeking wellness benefits. Furthermore, as a minimally processed tea, white tea resonates with environmentally aware customers looking for natural and sustainable products, contributing to the bubble tea demand growth. In October 2023, Adore Tea launched a new collection of white teas, featuring "White Peony" and "Silver Needle," emphasising their delicate flavours and organic sourcing to attract discerning tea lovers.

By Flavor Analysis

The Australia bubble tea market is flourishing, with classic tea—often made from black or green tea—serving as a fundamental element in many bubble tea offerings. Its familiar flavour profile appeals to traditional tea drinkers, making it a preferred choice for consumers. Rich in antioxidants, classic tea provides health benefits, attracting health-conscious customers. Its versatility also allows for a range of flavour combinations and toppings, enabling shops to create unique, personalised drinks. As a mainstay in bubble tea, classic tea cultivates consumer loyalty while encouraging new customers to explore various options. In July 2021, Chatime introduced DIY bubble tea kits in supermarkets, showcasing popular flavours and vibrant toppings. The well-known Australian bubble tea brand offered these kits at Woolworths, priced at $10 for four servings, which included popping pearls or brown sugar jelly.

The Australia bubble tea market is experiencing growth, with coffee-infused bubble tea becoming increasingly popular. This appeals to coffee enthusiasts and those looking for a caffeine boost. The blend of coffee with traditional bubble tea elements creates a unique flavour profile that attracts adventurous consumers. Rich in antioxidants, coffee offers health benefits that appeal to wellness-focused customers. Moreover, coffee's adaptability enables it to be combined with a variety of toppings and flavours, enriching the overall beverage experience, and contributing to the growth of the Australia bubble tea industry. Coffee flavour tea is expected to grow at a CAGR of 9.2% during the forecast period. According to the ABS, Australia is projected to consume around 2.1 million 60-kilogram bags of coffee in the 2024 financial year. In 2023, the average Australian consumed 3.84 kilograms of coffee.

Australia Bubble Tea Market Regional Insights

New South Wales Bubble Tea Market Regional Insights

New South Wales's multicultural community encourages a varied bubble tea market, featuring numerous flavours that appeal to a broad range of consumers. Moreover, many shops are now providing healthier alternatives, such as reduced-sugar options and natural ingredients, drawing in health-conscious customers. The New South Wales bubble tea market is expected to grow at a CAGR of 11.6% during the forecast period. In August 2023, iMUZ, a Taiwanese bubble tea store located in Eastwood's Breadtop, introduced a wide selection of drinks, including their signature Golden Pearl Milk Tea in Sydney.

Queensland Bubble Tea Market Trends

As per the Australia bubble tea market analysis, brands prioritise sourcing local ingredients, which supports farmers and promotes sustainability, resonating with environmentally conscious consumers. The bubble tea market share in Queensland, Australia, is projected to increase by 14.8% over the forecast period. Oolong tea is primarily imported to Australia before being processed to align with local preferences. Arakai Estate, located in the Sunshine Coast hinterland of Queensland, features 12,000 tea bushes cultivated across 5 kilometres of hedgerows.

Western Australia Bubble Tea Market Dynamics

The bubble tea market encourages innovation, as brands frequently launch new flavours and toppings to keep customers engaged. Moreover, the growth of online ordering and delivery services improves accessibility, accommodating busy lifestyles and expanding the customer base. The Western Australia bubble tea market is expected to grow at a CAGR of 9.7% during the forecast period. Prominent producers like the Gooralie Tea Company emphasise organic and sustainable farming practices to attract health-conscious consumers.

Competitive Landscape

The Australia bubble tea market key players are recognised for their high-quality tea products and dedication to excellence. These brands provide a wide range of options, featuring traditional herbal blends, green teas, and fruit-infused varieties. By prioritising sustainable sourcing and environmentally friendly practices, they support wellness and uphold tea culture, cultivating a loyal customer base and expanding their reach globally.

Key Industry Players

Gong Cha Australia Pty Ltd.: Founded in 2018, Gong Cha Australia Pty Ltd. is a prominent bubble tea brand known for its high-quality drinks and extensive menu. With a commitment to using premium ingredients and innovative recipes, the company has quickly gained popularity among tea enthusiasts across Australia. Its headquarters is in Sydney.

InfinitePlus Pty Ltd.: Established in 2016, InfinitePlus Pty Ltd. focuses on creating unique bubble tea experiences. The company is dedicated to offering a diverse range of flavours and toppings, appealing to a wide audience. Based in Melbourne, InfinitePlus promotes a culture of innovation and quality in the Australian bubble tea market.

Sharetea: Founded in 1992 in Taiwan, expanded to Australia in 2017. The brand is renowned for its authentic Taiwanese bubble tea, offering a variety of flavours and toppings. With a focus on freshness and quality, Sharetea aims to provide an exceptional tea experience. Its Australian headquarters is in Sydney.

Chaffic: It is a contemporary bubble tea brand established in 2019. Known for its innovative flavour combinations and commitment to quality, Chaffic appeals to health-conscious consumers by offering lower-sugar options. Based in Brisbane, the company aims to create a unique bubble tea culture in Australia.

Other key players in the Australia bubble tea market report are Xing Fu Tang Australia, Unesco International Pty Ltd. (Mr Bubble Tea), Gotcha, Palgong Tea and The Bobaboba Holdings Pty Ltd. among others.

Recent Development

July 2023

Xing Fu Tang made its debut in the bubble tea market with its unique "stir-fried" brown sugar boba. The caramelisation and fragrance of the brown sugar created a rich and indulgent experience. Their signature drink, Brown Sugar Boba Milk, became essential for those looking for a delightful mix of sweetness and depth of flavour.

March 2023

The well-known Taiwanese brand NUTTEA launched in Melbourne Central as Australia’s first vegan bubble tea. Focusing on high-quality, in-house nut mylks, it appealed to vegans, lactose-intolerant individuals, and environmentally conscious consumers. They offered nut mylk teas with pearls, brown sugar jelly, smoothies, fruit teas, and iced coffee with nut cream.