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Business Insider
24-04-2025
- Business
- Business Insider
With tariffs on the horizon, is your boba habit at risk?
Jeren Calinisan and Dominique Nguyen are worried about the price of one of their favorite indulgences: boba tea, a popular Taiwanese sweet beverage, chock-full of chewy tapioca balls. "$8 already is the most I've ever paid for a boba drink," Nguyen said as she sipped her champion milk tea with jasmine silk boba. It was mid-April, and the two friends had made a pit stop at Odd One Out, a tea shop in Pasadena, California, two weeks after President Donald Trump announced 32% tariffs on Taiwan, which he later paused for 90 days. Tariffs on China, a major source of other boba supplies, are also still in flux. The tea shops, producers, and boba lovers Business Insider spoke to are already preparing for price hikes. "As someone who drinks boba a lot, it's already kind of expensive living here in Los Angeles to get boba. So this is a new concern," said Calinisan, 29, who drinks boba around twice a month. Calinisan is Filipino American, and Nguyen is Vietnamese American — for both of them, drinking boba was a popular pastime growing up in the Bay Area. The Taiwanese treat has grown in popularity in the US, as brands like Starbucks and Jack in the Box have attempted to cash in on the boba craze. The US imported 38 million pounds of tapioca for consumption from Taiwan in 2024, up 927% from 2004, per the United States International Trade Commission. Odd One Out specializes in its own unique creation of silk boba, a mixture of tapioca and jelly. As a smaller franchise with two stores in Taiwan and three in the US, it's trying to delay the impact of future tariffs for as long as possible. "We're probably going to try to stockpile as much as we can," said cofounder Patrick Sun. Many of its botanical ingredients are imported from Taiwan, and Sun said it's difficult to find equivalents in the US. "We're not willing to really yield on quality. So for us, it's just going to impact our bottom line." Selling boba requires importing nearly everything The gummy consistency of boba comes from the tapioca starch made of cassava plants, a starchy root vegetable predominantly grown in hot tropical climates of Southeast Asia, said David Fan, one of the cofounders of US Boba Company, which produces boba for over 2,000 stores nationwide. Cassava is not as widely grown in the US, and the US Boba Company is one of the few domestic boba manufacturers. A lot of components that go into selling boba, like machinery, tea leaves, and drinkware, could be hit by tariffs. Even the cups are atypical of US-made cups, due to their rims and sizes, and boba requires wide straws to fit the little balls. Fan said the company imports tools and tea from China and other parts of Asia. "It's going to increase our cost as much as 20% to 30% overall, across the board." Right now, a pound of boba sold by the US Boba Company makes 10 servings and costs $11.99. Fan said that customer prices under tariffs could increase by as much as a dollar more per drink. Meanwhile, Sun said he expects the tariffs to increase the company's cost of goods by between 8% and 15%. He added that he doesn't plan to raise prices, and that profits could take a 5% hit. CoCo Bubble Tea, a major boba tea franchise with several thousand stores around the world, stocked up on three months of inventory at its stores, said Kody Wong, its director of business development. He added that he doesn't anticipate the company increasing prices in the next three to four months if tariffs are implemented. Wong is also anticipating that the company's menus might look different down the line. "We will find more local resources, like a different-flavor juice," he added. But Fan said the plan to keep prices the same for customers isn't realistic in the long term if tariffs do come into effect. "No one is going to be able to just eat the cost for a long time," Fan said. "Business people in the long haul are going to have to make a profit." Just a few blocks down the road from Odd One Out, Julianna Martinez and her coworker were sharing boba drinks at a local arcade café. Martinez said she's already feeling the brunt of inflation in her boba spending habits and is nervous about the tariffs. "I remember when boba used to be $0.50 extra," said Martinez, 23. Now she's been forgoing the tapioca toppings in her drinks to save money. "I sacrifice my preferences for the price." But Calinisan isn't ready to completely give up one of her favorite drinks. If prices go up, she'll have to buy boba less frequently. "There's also the fact that I can't make boba myself," Calinisan said. "That's another reason why I'm willing to spend so much." Do you have a story to share about how tariffs could impact your life? Contact this reporter at jdeng@
Yahoo
28-01-2025
- Business
- Yahoo
Global Tapioca Pearls Market Set to Exceed USD 6.8 Billion by 2034, Driven by Growing Demand in Food and Beverage Sectors
Some of the renowned companies operating in the global tapioca pearls market include Universal Thai International Enterprise Co. Ltd., US Boba Company, Reese Finer Foods Inc., American Key Food Products, Thai Wah Public Company Limited, INDEMIL LTDA., and Lollicup USA Inc. among others. NEWARK, DE / / January 28, 2025 / The global tapioca pearls market has now reached an estimated value of almost USD 5.4 billion by the end of 2024, with fine growth awaiting. Predictions show that the Compound Annual Growth Rate (CAGR) is stable at 2.4%, which will take the market forward of USD 6.8 billion by 2034. Tapioca pearls, particularly popular in the food and beverage sectors, are contributing to such growth. From being famous in the creation of bubble tea, they have seen wide usage across different fields ranging from desserts to snacks, to cosmetics and even textiles. Rising demand for healthy, gluten-free food is also another reason why the market is growing. This market has tapioca pearls that are considered nutritious due to their high magnesium, calcium, folate, and iron content. Sales of tapioca pearls are likely to surge at a fast pace in the food and beverage sector. These are extensively used to thicken liquid food items, such as pudding. Apart from that, these are used in cosmetics, glue, and textile as a stabilizing agent. Healthcare professionals often recommend the consumption of tapioca pearl infused food and beverages to pregnant women as these are rich in folate, magnesium, iron, and calcium. The demand for tapioca pearls is anticipated to grow in future years with the increasing healthcare awareness among consumers. These have recently gained immense popularity across the globe owing to the trend of consuming Taiwanese bubble tea, commonly known as boba tea. Fast food restaurant chains, such as McDonald's have also started selling dessert beverages with tapioca pearls across Europe to upgrade their existing menu. Get Ahead with Our Report: Request Your Sample Now! Key Market Drivers Bubble Tea Popularity: The primary factor that is fueling the growth of tapioca pearls is the world's craze for bubble tea, especially among young consumers. Inhued by the power of social media and heightened footfalls in cafes and restaurants, the bubble tea market, along with its main ingredient-tapioca pearls, is still on an upswing. Health Awareness: Consumers have started to take cognizance of the health benefits associated with tapioca pearls, such as their gluten-free natural properties and low cholesterol content. These health benefits have helped to further increase the demand for tapioca pearls in healthier markets. Diverse Applications: Other than bubble teas, tapioca pearls are extensively used in large-sized food products now. They range from smoothies, puddings, and lately emerging tapioca chip-based snack applications. This will increase the diversity among potential applications and bring in more into market. Rising Disposable Income in Emerging Markets: Consumer behavior in countries like India and China is shifting, and growing disposable incomes allow for the consumption of premium food products, such as tapioca pearls. The markets will experience tremendous growth with CAGRs of 6.7% and 5.5%, respectively, during the forecast period ending 2034. Gain a competitive edge and drive innovation with our expertly crafted Functional Food Ingredients Industry Analysis Reports. Key Takeaways from theTapioca Pearls Market The global tapioca pearls market is expected to reach over USD 6.8 billion by 2034, with a 2.4% CAGR. The growth in demand for bubble tea among the younger generation is a primary factor driving the market. Tapioca pearls are gaining popularity due to their health benefits, gluten-free, and rich in essential nutrients. Tapioca pearls are increasingly used in desserts, snacks, and various food products, besides beverages. United States, India and China will dominate markets for tapioca pearls up to 2034. Medium-sized tapioca pearls (5-8 mm) continue to dominate the market due to their versatility. Sales from direct /B2B will lead tapioca pearls. These will grow at 5.2% CAGR up to 2034. "The growing prominence of bubble tea, coupled with an escalating consumer preference for health-conscious, gluten-free alternatives, is driving market expansion. Additionally, the versatile application of tapioca pearls across a broad spectrum of culinary creations, particularly in desserts and snacks, is further propelling their widespread adoption." - says Nandini Roy Choudhury, Client Partner at Future Market Insights. How is the Demand for Bubble Tea Pushing the Tapioca Pearls Market Growth? The surging consumption of coffee and tea as nootropic beverages among the working-class population and students is a major factor that is likely to push the tapioca pearls market growth in the evaluation period. Researchers have found that moderate consumption of low calorie and zero fat hot beverages, such as bubble tea, can enhance brain function and boost concentration. This factor is also projected to propel the growth in this market. Moreover, the availability of multiple flavors, such as simple classics, coffee, chocolate, and fruits in the bubble tea sector is anticipated to bode well for the market. Rising inclination of consumers towards hot beverages from carbonated drinks owing to their numerous health benefits is also set to fuel growth. Which Downsides of Bubble Tea May Hinder the Tapioca Pearls Market Growth Although bubble tea is usually made with green or black tea, it can also contain high quantities of sugar. Depending on the flavor, a 16-ounce serving of bubble tea can contain nearly 36 to 65 grams of sugar. Thus, drinking bubble tea on a daily basis can increase an individual's risk of heart diseases, obesity, and diabetes. In addition, the lack of fiber and high dairy content in this type of tea can result in constipation and abdominal pain. Spurred by the aforementioned factors, the demand for tapioca pearls may decline in the near future. How is the Asia Pacific Tapioca Pearls Market Progressing? The increasing production and sales of tapioca pearl infused boba tea in Thailand, Singapore, Taiwan, and Japan are likely to propel the Asia Pacific tapioca pearls market share. Key players in these countries are also focusing on launching new beverages with innovative flavors to attract more consumers. In July 2021, for instance, Signature by KOI, a popular tea outlet based in Singapore, introduced two new alcoholic beverages, namely, Whiskey Oriental and VSOP Chocolate in the country. The VSOP Chocolate is made with Brandy VSOP and chocolate milk. It can be topped with mini bubbles, boba, and coconut jelly. Whiskey Oriental is made with whiskey and Oriental Beauty Tea. The introduction of similar other unique beverages is set to augment the Asia Pacific market. How is the Demand for Fruit-based Teas Driving the North America Tapioca Pearls Market? North America is expected to remain in the second position in terms of share in the tapioca pearls market. The rising popularity of tea-based fruity beverages in the U.S. and Canada is projected to accelerate the sales of boba tea, thereby expanding the tapioca pearls market size. Rising number of bubble tea outlets across North America owing to the surging demand from youngsters and health conscious populations is another vital factor that is set to drive growth. Starbucks, for instance, announced that it is experimenting with its own version of boba-style iced coffee in the U.S. Such innovations by tea and coffee shop giants are anticipated to bolster the North America market. Competitive Landscape of the Tapioca Pearls Market The market of tapioca pearls is highly competitive, with Universal Thai International, US Boba Company, and Reese Finer Foods at the helm. Local brands use regional knowledge to serve the preferences of the consumers, whereas global companies have focused on large-scale distribution and product innovation. Both types of players face very high competition that has been leading to continuous growth and product diversification in the market. Access the Full Report Tapioca Pearls Market Trends and Projections Now! Regional Insights into the Tapioca Pearls Market Countries Value (2034) CAGR 2024 to 2034 United States USD 1.6 Billion 2.1% Germany USD 0.8 Billion 3.1% Japan USD 0.4 Billion 4.0% China USD 0.9 Billion 5.5% India USD 1 Billion 6.7% Key Companies in the Tapioca Pearls Market Universal Thai International Enterprise Co. Ltd. US Boba Company Reese Finer Foods Inc. American Key Food Products Thai Wah Public Company Limited INDEMIL LTDA. Lollicup USA Inc Thai Wah Public Company Limited Andes Foods Ltd. Sunnysyrup Food TING JEAN FOODS Vernica Herbs Venus Starch Grain Millers. Key Segments of Market Report By Size: By Size, the segment has been categorized into Small (< 5 mm), Medium (5 - 8 mm), and Large (> 8 mm). By End Use: Different End Uses include Industrial Processing, Bakery Products, Confectionery, Desserts, Dairy Products, Beverages, service/HoReCa, Household/Retail, and Others By Sales Channel: Different Sales Channel included Direct/B2B, Indirect/B2C, Hypermarkets/Supermarkets, Specialty Stores, Grocery Stores, and e-retailer By Region: Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa. Authored by: Nandini Roy Choudhury (Client Partner for Food & Beverages at Future Market Insights, Inc.) has 7+ years of management consulting experience. She advises industry leaders and explores off-the-eye opportunities and challenges. She puts processes and operating models in place to support their business objectives. She has exceptional analytical skills and often brings thought leadership to the table. Nandini has vast functional expertise in key niches, including but not limited to food ingredients, nutrition & health solutions, animal nutrition, and marine nutrients. She is also well-versed in the pharmaceuticals, biotechnology, retail, and chemical sectors, where she advises market participants to develop methodologies and strategies that deliver results. Her core expertise lies in corporate growth strategy, sales and marketing effectiveness, acquisitions and post-merger integration and cost reduction. Nandini has an MBA in Finance from MIT School of Business. She also holds a Bachelor's Degree in Electrical Engineering from Nagpur University, India. Nandini has authored several publications, and quoted in journals including Beverage Industry, Bloomberg, and Wine Industry Advisor. Explore FMI's related ongoing Coverage in Food and Beverage Domain: The Functional Protein Market size is projected to grow from USD 7,255.2 million in 2024 to USD 10,518.4 million by 2034, with a 4% CAGR. The demand for Brilliant Blue FCF Colors is expected to grow from USD 53.8 million in 2022 to USD 97.2 million by 2032, at a CAGR of 4.8%. The Citric Acid Market value is projected to grow from USD 172.7 million in 2024 to USD 248.6 million by 2034, with a CAGR of 3.70%. The Powdered Soft Drinks Market size is estimated at USD 12.3 billion in 2023 and is expected to grow at a CAGR of 3.4%, reaching USD 17.3 billion by 2033. Sales of Slimming Tea was valued at USD 7.4 billion in 2022 and is expected to exceed USD 11.5 billion by 2032. The Craft Soda Market value is expected to generate USD 742.8 million in revenue in 2024, growing at a CAGR of 4.90% to reach USD 1,200.8 million by 2034. The demand for Ready-to-Drink Beverage is projected to grow from USD 206.25 billion in 2024 to USD 430.30 billion by 2034, with a CAGR of 7.6%. The Matcha Market size is valued at USD 2.7 billion in 2023 and is expected to reach USD 7.1 billion by 2033, growing at a CAGR of 10.2%. The Tapioca Maltodextrin Industry is estimated at USD 620.1 million in 2024 and is projected to reach USD 1,314.2 million by 2034, growing at a CAGR of 7.8 The Tapioca Market size is valued at USD 4.1 billion in 2023 and is expected to reach USD 6.3 billion by 2033, growing at a CAGR of 4.4%. About Future Market Insights (FMI) Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. Contact FMI: Future Market Insights Inc. Christiana Corporate, 200 Continental Drive, Suite 401, Newark, Delaware - 19713, USA T: +1-845-579-5705 For Sales Enquiries: sales@ Twitter| Blogs | YouTube SOURCE: Future Market Insights, Inc. View the original press release on ACCESS Newswire Sign in to access your portfolio
