Is it here to stay or just a fad?

Bubble tea, once a playful drink, has now evolved into a multi-billion-dollar industry.

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

Recently, three Chinese bubble tea chains — Mixue Group, Guming Holdings, and Auntea Jenny — went public in Hong Kong, collectively raising over $700 million as investors show confidence in China’s rapidly growing consumer market.

William Ma, chief investment officer at Grow Investment Group, believes that investing in sectors less affected by U.S. tariffs, such as domestic consumption driven by the younger generation, is a more stable option for global investors.

Mixue has become a dominant player in the industry with over 46,000 stores worldwide by the end of 2024, surpassing major food-and-beverage chains like McDonald’s, Starbucks, and Subway in terms of outlet count.

The franchise model is key to the bubble tea industry’s expansion, with most large chains relying on franchising for growth. While this model allows for rapid expansion, maintaining quality and avoiding competition between stores can be challenging.

Overseas expansion presents its own set of challenges, as supply chain management and consumer preferences vary across different regions. Brands are adapting by offering regional flavors and store formats to cater to local tastes.

Despite facing market saturation and intense competition, the ability of these brands to balance scale with profitability will determine their long-term success.

For the full video explanation, please watch the video at the top of the page.