Bubble tea may have started as a playful drink, but it has grown into a billion-worthy industry.
According to a report by Fortune Business Insights, the global bubble tea market will increase from $2.83 billion in 2025 to $4.788 billion by 2032.
This year, three Chinese bubble tea chains — Mix Group, Gumming Holdings and Auntigeny — were listed in Hong Kong, raising over $700 million in bets on China’s fast-growing consumer market.
“This is the right place at the right time,” said William MA, chief investment officer at Grow Investment Group, in an interview with “CNBC Description.”
“Many global investors are trying to invest in sectors that are not sensitive to US tariffs. Therefore, domestic consumption, the younger generation, is a more stable or vulnerable sector,” MA added.
Mix has appeared as a heavyweight in the sector and by the end of 2024 it has more than 46,000 stores worldwide. McDonald’s, Starbucks And the subway. Its ultra-low prices and massive models are leaning heavily towards the franchise.
“In 2024, they’re growing at around 22% in terms of new stores growth,” MA said.
Franchises are at the heart of the bubble tea industry. Most large bubble tea chains don’t run their own stores. Almost all outlets are franchised. While the parent company makes money from supplying materials and equipment and collecting fees, the franchisees will bear rent, labor and utility costs.
The model promotes rapid growth, but comes with trade-offs. Maintaining quality and avoiding cannibalism in stores becomes more difficult as outlets increase.
“The usual payback period for franchisee business owners is 18-24 months,” MA said, estimated that store closure rates are around 20% across the market.
However, overseas expansion does not guarantee success. CNBC Chinese reporter Elaine Yu noted that replicating domestic formulas abroad brings additional challenges.
“Supply chains are difficult to control and consumer preferences vary from city to city, so brands adapt to local flavours and different store formats to attract local customers,” Yu said.
Market saturation at home, rising costs, and a fierce price war also tests the resilience of these brands. Their ability to maintain their rating depends on their ability to balance scale and profitability, proving that they can build more than just a trend.
Click on the video at the top of the story to see the full accountant.
