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Bubble tea has dominated internationally over the past few years. Originating from Taiwan in the early 1980s, a drink that primarily consists of tapioca and has various teas to choose from depending on the stores, it has solidified its place in the market with its huge following.
It is a growing market with a rate of 8.69%, estimated to be at $6.12 billion by 2032. We’re seeing not only bubble tea stores but places such as Starbucks and other notable coffee shops selling tapioca as an option to put inside their drinks. Let’s go further into the business opportunities they have created and why they are renowned for their status today.
As people are becoming more aware of the ingredients they are consuming, bubble teas have the component of having a wide variety of products to choose from. From its option to change the sugar level to selecting the type of fruit or milk that will be inside the drink, the freedom it gives to the consumers makes bubble tea an innovative drink. This also means that people can make drinks ranging from healthy tea products to sweet and tasty desserts. Following this, Mixue Ice Cream and Tea is a recent example of how popular bubble teas genuinely are. Based in China, the company continues to expand with its staggering over 45,000 available stores across 12 countries, surpassing McDonald’s and Starbucks outlets. Furthermore, it made $444 million in its initial public offering, with each outlet being run by franchisees. Another example is Gong Cha. Maintaining consistency in making its teas by hand and using overall high-quality materials, the brand continues to expand rapidly worldwide. The latest news estimated over $600 million in global sales at the end of 2024.
As we see international success for bubble teas, places outside Asia, such as the U.K., have their reasons for growing popularity—the country’s cultural choice towards teas blends with the trend of what many Gen Z consume. From the entrepreneur’s perspective, it is also a low-cost opportunity to begin their business compared to opening a coffee shop. Going back to the success of Gong Cha and its goal to expand its stores further, recently, they announced plans to open 225 new stores across the U.K. this year, leading to a potential opportunity for over 2,000 new jobs. The undeniable popularity of bubble teas is helping many businesses get to where they are today, hoping to maintain their relevance in the future with their target audience being Gen Z.
However, despite its popularity, matters have risen in the U.S. as the tariffs will increase the cost of creating bobas because their ingredients are primarily sourced from Asian countries. Specifically, the U.S. Boba Company, the leading supplier for different stores in the U.S., hopes to figure out alternative methods to keep its cost to a minimum.
The demand for bubble teas is expected to remain high. Extending from the variety of choices that anyone can make when ordering them, the social media influence, and the cultural grounds it has all over the world, the innovation towards the product can have endless amounts of possibilities. It managed to bring that value from the business aspect to the consumers’ satisfaction. We’ll have to see what it’s further capable of doing soon.
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