Milk Tea - From a Fun Drink to a Billion Dollar Industry

According to a report by Fortune Business Insights, the global bubble tea market size is expected to increase from $2.83 billion in 2025 to $4.78 billion in 2032.

Once a recreational drink, bubble tea has now become a multi-billion dollar industry.

According to a report by Fortune Business Insights, the global bubble tea market size is expected to increase from $2.83 billion in 2025 to $4.78 billion in 2032.

This year, three Chinese milk tea chains, Mixue Group, Guming Holdings and Auntea Jenny, listed on the Hong Kong stock exchange, raised more than $700 million as investors bet on the fast-growing consumer potential of the Chinese market.

William Ma, chief investment officer at Grow Investment Group, said many global investors are looking to invest in sectors less sensitive to US tariffs, where domestic consumption, especially from the younger generation, is seen as more stable and less risky.

Mixue is now emerging as the "giant" of the milk tea industry, with more than 46,000 stores worldwide by the end of 2024.

This number helps Mixue become the world's largest food and beverage chain in terms of number of stores, surpassing McDonald's, Starbucks and Subway.

Ultra-low prices, high volume sales and franchise development are pillars of the company's strategy.

In 2024, Mixue will achieve a growth rate of about 22% in the number of new stores.

Franchising is considered the heart of the bubble tea industry. Most of the major chains do not directly operate the stores, but almost all operate on a franchise model.

The parent company profits from the supply of raw materials, equipment and franchise fees, while the franchisee bears the costs of premises, labor and operations.

This model allows for rapid expansion, but it also carries risks: difficulty in controlling consistent quality and the risk of competition between stores. However, expanding abroad does not necessarily mean success.

CNBC China correspondent Elaine Yu said the domestic business formula is unlikely to be fully applied in the international market.

“The supply chain is harder to control, and consumer tastes vary from city to city. So brands have to adapt to local tastes and different store formats to appeal to local customers,” said Mr. Yu.

In the domestic market, saturation, rising costs and fierce price wars are testing the resilience of brands.

Whether they can maintain their high market valuations will depend on their ability to balance scale and profitability – and prove that bubble tea is more than just a passing fad./.

(Vietnam+)

Source: https://www.vietnamplus.vn/tra-sua-tu-thuc-uong-vui-nhon-thanh-nganh-cong-nghiep-ty-usd-post1056435.vnp