Bubble tea is projected to reach $3,214 million by 2023, and is growing at a CAGR of 7.40% from 2017 to 2023.
Today, the new generation is craving for change and innovation. Given the right proportion and time, Bubble Tea as a segment has gained momentum worldwide. With a wide variety of refreshing flavored fruit and milk teas served ice cold or piping hot with various toppings, bubble tea has lots of opportunity as a segment to grow in the country.
“Valued at $1,957 million in 2016, Bubble tea is projected to reach $3,214 million by 2023, and is growing at a CAGR of 7.40% from 2017 to 2023,” said a report by Allied Market Research.
Betting Big on the Segment
Originated in Taiwan, bubble tea or boba tea as it is popularly known as, is widely consumed flavored beverage containing tea as the basic component, along with chewy tapioca balls. Tapping the market, the creator of Malaysia’s Tealive bubble tea brand has announced its collaboration with World Iconic Brands Hospitality Pvt Ltd (WIB). WIB is a specialist franchise development company in India, which has secured master franchisee rights to open 140 stores in three cities in India within next five years. The Tealive outlets will come up in New Delhi, Mumbai and Bengaluru.
“India being a tea loving country, we see a huge potential for our product. We are happy to seal this partnership with WIB to be the first Malaysian bubble tea brand to enter the Indian market. We could not have chosen a better partner, as WIB is owned by Franchise India, which has a proven record of over two decades in the business,” shared Bryan Loo, CEO, Loob Holding that serves 2.5 million consumers each month in their 175 outlets in Malaysia.
Following Local Footprint
Not only international brands, Indian brands are also venturing into the segment capturing the right proportion of clientele and trend. Globally famous for its tea drinking habits, India is one of the largest producers of tea in the world. “As per Indian Tea Association, the total production of tea in 2016 was 1,267 million kg, and the industry estimated output of 1,280 million kg in 2017,” said Gaurav Marya, Founder, WIB who believe, Tealive presents a huge opportunity in the country where people relate to the concept in a big way. “Tealive is an ideal partner to introduce a modern tea-culture to India, which itself has a long tradition of enjoying tea,” added Marya who is also the Chairman of Franchise India Group.
Owing to increase in health benefit, consumption of bubble tea accounted for more than 83% of the total bubble tea market in North America and Asia-Pacific. India is not too far when it comes to accepting the global trend seeing the growth of health freaks and wellness influencers in the country.
“We are actually trying to eliminate the difference between taste and nutrition by fusing them together. We try to serve everything with some health benefits,” shared Adnan Sarkar of Dr. Bubble that is running 20 franchised outlets in different part of the country.