{"id":44404,"date":"2020-09-09T16:00:00","date_gmt":"2020-09-09T08:00:00","guid":{"rendered":"https:\/\/daxueconsulting.com\/?p=44404"},"modified":"2023-06-16T14:57:36","modified_gmt":"2023-06-16T06:57:36","slug":"success-bubble-tea-china","status":"publish","type":"post","link":"https:\/\/daxueconsulting.com\/success-bubble-tea-china\/","title":{"rendered":"What the success of bubble tea in China reveals about Chinese consumers"},"content":{"rendered":"\n

With more than 140.5 billion RMB<\/a> of annual sales made by milk tea shops in 2019, the success of bubble tea in China<\/strong> is well proven. If you are lost among all the new entrants to the market, the latest innovations and the dynamics of the sector, this article retraces the history of bubble tea analyzing its success.<\/p>\n\n\n\n

Read our full report on the tea market in China
<\/a>Download Tea Market in China report<\/a><\/div>\n\n\n\n

The incredible success of bubble tea in China since 1996<\/h2>\n\n\n\n

Bubble tea is a drink made from tea (usually black tea), milk, syrup, and a special ingredient that captivates the hearts of Chinese people: tapioca pearls. Bubble tea is also known as \u73cd\u73e0\u5976\u8336 (Zhen Zhu Nai Cha) directly translates to pearl milk tea, but is also known as boba tea in parts of the world. Far from healthy, the drink contains a lot of caffeine and sugar, especially due to syrup sweetener.  <\/p>\n\n\n\n

What is\ncaptivating about this drink is that it is both drank and eaten at the same\ntime. Tapioca pearls, which can be different sizes, offer a unique chewy texture\nand a sweet taste. <\/p>\n\n\n\n

Where does such a successful drink in China\u2019s beverage market come from?<\/h4>\n\n\n\n

Bubble tea originates<\/a> from Taiwan, in the city of Taichung. It was reportedly created in the 1980s in a tea shop called Chen Shui Tang where the owner, Liu Han-Chieh, was selling oolong tea. With the innovative idea of changing the way Chinese people consumed tea, and a bit of influence from the Japanese way of drinking cold drinks, mixed tea, milk, and ice in a cocktail shaker. Following the popularity of his cold drinks, he experimented with pouring tapioca pearls into the milk tea. This marks the birth of the world-famous Bubble tea beverage in China. <\/p>\n\n\n\n

\"
[Source: SCMP \u2013 The founder of bubble tea in Taiwan]<\/figcaption><\/figure>\n\n\n\n

The\nrest of the story is well known: bubble tea has been a great success, spreading\nthroughout Asia and even gaining popularity throughout North America. Today,\nbubble tea is an integral part of Taiwanese and Chinese culture. <\/p>\n\n\n\n

More and more brands on China\u2019s\nbeverage market<\/h3>\n\n\n\n
\"Number
Source: Qianzhan\u2013 Number of milk tea shops in China<\/figcaption><\/figure>\n\n\n\n

China\u2019s bubble tea market seems almost saturated: at the end of 2019 Qianzhan <\/a>counted 500,000 milk tea shops offering bubble teas in China. The number of milk tea shops in 2019 increased by 11% from 2018. However, the expansion of new stores was affected due to the impact of the epidemic. By the end of June 2020, the number of tea stores in China is around 480,000. Bubble tea is the best-seller in almost every milk tea shop. There are dozens and dozens of players in the milk tea market in China. Equal Ocean<\/a> ranked the 19 most powerful<\/a> brands in 2019 in this sector: <\/p>\n\n\n\n

Bubble tea brands in China can be divided into two types: traditional and new style, embodied by the famous Heytea brand (find the Heytea case study<\/a> here). The differences are mainly in price and design. The new ones attract younger consumers who see them as a way to show a cool and international lifestyle. <\/p>\n\n\n\n

Among these bubble tea brands in China, some will catch your attention, either by the pertinence of their marketing strategy or by their product innovation or even their financial power.<\/p>\n\n\n\n

Bubble tea brands in China, those who paved the way<\/strong><\/h4>\n\n\n\n