Is here to stay or just heresy?

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Why do Chinese bubble tea chains ferment billions?

Bubble Tea may have started a playful drink, but it has grown to an industry worth billions of dollars.

The size of the global bubble tea market will grow from $ 2.83 billion in 2025 to $ 4.78 billion by 2032, according to a report From Fortune visions.

This year, three Chinese bubble tea chains, Group, Guming Holdings, AUNTEA JENNY-in Hong Kong, have raised more than 700 million dollars as investors are betting on the high consumer market in China.

“This is the right place at the right time.”CNBC explains.

“Many global investors are trying to invest in sectors less sensitive to American definitions. So local consumption and the consumption of the smaller generation is a more stable or less vulnerable sector.”

Mixue has a heavy cosmic company for the sector, with more than 46,000 stores around the world by the end of 2024. This makes it the largest series of food and food in the world-before counting. McDonald’sand Starbucks And metro. Its prices tend to be very low and high -sized model on the privilege.

“In 2024, they grow about 22 % in terms of the growth of new stores,” he pointed out.

The concession is essential for the bubble tea industry. Most large bubble tea chains do not manage the same stores. Almost each outlet is distinguished. Parent companies win from providing components and equipment and collecting fees, while the concessions bear the costs of rent, employment and facilities.

This model nourishes growth, but it comes with barters: maintaining quality and avoiding human meat eating more difficult with the outlets equalizing.

“The regular recovery period for the business owner, for the concession owner, ranges from 18 to 24 months,” said Massachusetts, who estimate the store closing rates by about 20 % in the market.

But expanding abroad is not a guarantee of success. Eileen Yu, a China CNBC correspondent, noticed that the recurrence of the local formula abroad comes with additional challenges.

“It is difficult to control supply chains, and consumer tastes vary from city to city. For this reason, brands adapt to regional flavors and various stores to beat local customers,” said.

The market saturation at home, increased costs and intense price wars also test the elasticity of these brands. Whether they can maintain their assessments will depend on their ability to balance the size with profitability – and prove that they can build more than just a heresy.

Watch a full explanation by clicking on the video at the top of the story.



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