Increase in the Demand of Tapioca Pearls Due to the Bubble Tea Concept Gaining Traction

VALLEY COTTAGE, N.Y. – Tapioca Pearls Market Outlook

Tapioca pearls are spheres that are made using tapioca starch. The tapioca starch is extracted from the root of Cassava and has a bland flavour. The production of the tapioca is majorly in few of the Asian countries and in Brazil. The tapioca pearls are available in various different sizes according to the requirement in the food products it is used in. Recently, very small tapioca pearls are available in the market as these do not need cooking and they can be used just by soaking them in hot water. This is more popular in the households as the tapioca pearls can be quickly used in the desserts or for any other end use applications. Also, coloured tapioca pearls are available in the market. The tapioca pearls for use in bubble tea is mixed with brown sugar and various other components to avoid the clumping of the pearls and also it is caramel in colour due to these additions.

The manufacturers of the tapioca pearls are coming up with new tapioca pearls products in order to provide more variety so as to allow the consumers to select from products that are new as well as different. The tapioca pearls with new varieties, added convenience and more speed will have a higher value in the upcoming years.

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Increase in the Demand of Tapioca Pearls Due to the Bubble Tea Concept Gaining Traction

The bubble tea has the base as tea but its main ingredient is the tapioca pearls. This was originated in Taiwan but in recent years, the bubble tea which was previously considered a novelty in the Western countries has now become a part of their social life. The increasing presence of the bubble tea has, in turn, increased the demand of the tapioca pearls. But previously, the tapioca pearls and the ingredients required for the bubble tea were imported from Taiwan. But many companies have started their own production facilities of the tapioca pearls to cut down on the cost. The high demand for the bubble tea is observed in North America and European regions.

Tapioca Pearls Market: Segmentation

The tapioca pearls can be segmented on the basis of size, end use and sales channel.

On the basis of size, the tapioca pearls market can be segmented as:

  • Small (< 5 mm)
  • Medium (5 – 8 mm)
  • Large (> 8 mm)

On the basis of end use, the tapioca pearls market can be segmented as:

  • Industrial Processing
    • Bakery Products
    • Confectionery
    • Desserts
    • Dairy Products
    • Beverages
    • Others
  • Foodservice/ HoReCa
  • Household/ Retail

On the basis of sales channel, the tapioca pearls market can be segmented as:

  • Direct/ B2B
  • Indirect/ B2C
    • Hypermarkets/Supermarkets
    • Specialty Store
    • Grocery Stores
    • e-Retailer

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Tapioca Pearls Market: Regional Analysis

The tapioca pearls have been used in the APAC region especially in the south-east Asian countries and China since a very long time. It is being used in the savoury and sweet dishes in these countries. But the tapioca pearls have recently gained traction in the Western countries due to the bubble tea concept. It is also being used as an ingredient in the breakfast dishes or to add texture to the dishes. The companies that are selling bubble tea are putting up factories in the U.S. for making tapioca pearls due to the huge demand. The US Boba Company is a tapioca manufacturing company in the United States that was installed by the owners of bubble tea company called the Teaspoon in order to cater to the increasing demand in the U.S. market. But still, there are many companies that are importing tapioca pearls from the south-east Asia countries such as Taiwan, Thailand etc. due to the extensive production process.

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Tapioca Pearls Market: Key Participants

Some of the key market participants in the tapioca pearls market are:

  • US Boba Company
  • American Key Food Products
  • INDEMIL LTDA.
  • Universal Thai International Enterprise Co. Ltd.
  • Thai Wah Public Company Limited
  • Lollicup USA Inc.
  • Reese Finer Foods Inc.

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