What began as a fun, quirky drink has evolved into a multibillion-dollar industry. According to Fortune Business Insights, the global bubble tea market is projected to grow from $2.83 billion in 2025 to $4.78 billion by 2032.
This year, three major Chinese bubble tea brands — Mixue Group, Guming Holdings, and Auntea Jenny — went public in Hong Kong, raising over $700 million as investors placed big bets on China’s expanding 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 Explains.” He noted that global investors are increasingly drawn to sectors tied to domestic consumption, which are less vulnerable to U.S. tariffs and more stable due to the spending power of younger generations.
Leading the pack is Mixue, which by the end of 2024 had more than 46,000 outlets worldwide — making it the largest food-and-beverage chain globally, surpassing McDonald’s, Starbucks, and Subway. Its rapid growth is powered by an aggressive franchising model that relies on low prices and high volume.
“In 2024, their new store growth is around 22%,” Ma said.
Franchising is the industry’s backbone. Parent companies profit by supplying ingredients, equipment, and collecting franchise fees, while store operators bear expenses like rent, wages, and utilities. This setup enables rapid expansion but creates challenges in maintaining quality and avoiding oversaturation.
“On average, a franchisee recoups their investment in 18 to 24 months,” Ma explained, while noting that roughly 20% of outlets eventually close.
Yet success at home doesn’t guarantee smooth expansion abroad. CNBC’s China correspondent Elaine Yu highlighted that overseas markets pose additional hurdles. “Supply chains are harder to manage, and local consumer preferences vary widely. That’s why brands are experimenting with regional flavors and new store formats to attract international customers,” she said.
At the same time, rising costs, intense competition, and a crowded domestic market are testing the durability of these bubble tea giants. Ultimately, their future depends on whether they can balance rapid growth with profitability — and prove the industry is more than just a fleeting trend.
