Tapioca Farming is a Great Investment in Thailand
Tapioca, derived from the cassava root, has gained prominence as a lucrative agricultural commodity in Thailand. Here are several reasons why investing in tapioca farming can be a sound decision.
Our Concept
Here at BubbleGro Ventures we give our clients the opportunity to own their own tapioca farm within one of our state of the art tapioca production plants.
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Each plant takes a square meter of growth space which produces two yields per year*. This enables us to achieve an inflation busting 12-18% return for our clients each year.
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Why Tapioca?
Tapioca is widely used in various industries, including pharmaceuticals, biofuels and food.
The global demand for tapioca starch is on the rise, driven by its applications in food processing and as a thickening agent. Additionally, the popularity of tapioca pearls in bubble tea has further fueled market demand, especially among younger consumers.
Tapioca Uses
Tapioca's versatility extends far beyond the kitchen. From culinary delights like bubble tea and puddings to industrial applications in food production, biofuels, and pharmaceuticals, tapioca has established itself as a valuable ingredient. Its gluten-free nature and unique texture make it a favorite in both traditional and modern recipes, while its industrial uses highlight its importance in various sectors. As demand for tapioca continues to grow, its applications are likely to expand even further, showcasing the endless possibilities of this remarkable ingredient.
Nutritional Supplements
Tapioca is rich in carbohydrates and provides a quick source of energy. Its high digestibility makes it suitable for dietary supplements and baby foods, catering to those who require easily digestible nutrition.
Pharmaceuticals
In the pharmaceutical industry, tapioca starch is used as a binding agent in tablet formulations. Its properties help ensure the consistent release of active ingredients, making it a valuable component in medication production.
Biofuel Production
Tapioca is increasingly being explored as a raw material for biofuels. Its starch can be converted into ethanol, providing a renewable energy source that can help reduce reliance on fossil fuels.
Food Industry
Beyond its culinary roles, tapioca is utilized in the food industry for producing various processed foods. It serves as a stabilizer, emulsifier, and texturizer in products like ice cream, sauces, and dressings.
Baking
Tapioca flour is increasingly used in gluten-free baking. It adds moisture and chewiness to baked goods, such as bread, muffins, and cookies. It can be combined with other gluten-free flours to achieve the desired texture and flavor.
Market Overview
The global industry refers to the commercial segment that deals in the production and sale of tapioca pearls. They are also known as bubbles, boba, or simply pearls. Structurally, they are small and can be easily chewed since they are made of starch derived from tapioca which is a derivative of cassava root. Tapioca pearls have found extensive application as food toppings or are added as additives in beverages like smoothies, tea, and fruit juices.
In the last few years, the global market has registered significant growth and has become exceptional in regions like Europe, North America, and Asia where bubble tea has garnered a dedicated consumer base. Furthermore, the market comprises tapioca pearl producers and suppliers, retailers selling bubble tea drinks, and manufacturers of bubble tea. It is full of small and large-scale business players making it a highly competitive market who are finding ways to keep a strong hold on the sales volume. The industry is diverse in terms of product availability in different flavors, colors, and sizes.
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Key Insights
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As per the analysis shared by our research analyst, the global tapioca pearls market is estimated to grow annually at a CAGR of around 1.9% over the forecast period (2022-2030)
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In terms of revenue, the global tapioca pearls market size was valued at around USD 5.21 billion in 2022 and is projected to reach USD 8 billion, by 2030.
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The market is projected to grow at a significant rate due to the growing popularity of bubble tea
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Based on distribution channel segmentation, supermarkets & hypermarkets were predicted to show maximum market share in the year 2022
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Based on end-user segmentation, HoReCa was the leading user in 2022
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On the basis of region, Asia-Pacific was the leading revenue generator in 2022
Growing popularity of bubble tea to propel market demand
The global tapioca pearls market is projected to grow owing to the increasing popularity of bubble tea which has, in the last few years, become a popular form of beverage in many parts of the world. Tea is slowly gaining a higher consumer database in developing nations with the launch of new service providers. Tapioca pearls are the key ingredients in bubble tea and hence the more number of suppliers translates to higher demand for tapioca pearls.
Furthermore, key market players are benefitting from the constant franchise expansion of bubble tea brands like Koi, Chatime, and Coco. In recent years, the brands have expanded their reach with the aid of strategic collaboration, unexplored market entries, and exhaustive spending on marketing campaigns. For instance, in September 2021, Koi inaugurated its 40th store in the UK in the Manchester region. The company intends to open more stores in the UK in the coming years driven by the growing popularity and demand for bubble tea. Moreover, the enormous amount of new product launches in different flavors, and constant product innovation also help to serve a broader consumer database.