Is it here to stay or just a fad?

Bubble tea may have begun as a fun drink, but it has become a billions of worth an industry.

According to A, the global bubble tea market size will rise from $ 2.83 billion to 2032 in 2025 to $ 4.78 billion. report From Fortune Business Insights.

This year, the three Chinese bubble tea chain listed in Hong Kong-Mixue Group, Guming Holdings and Auntea Jenny-Satancies have gathered more than $ 700 million for betting on China’s rapidly growing consumer market.

William Ma, Chief Investment Officer of Grow Investment Group, said in an interview with “CNBC Descriptions”, “This is the right place at the right time.”

“Many global investors are trying to invest in less sensitive sectors in US tariffs. Therefore, domestic consumption, younger generation consumption is a more stable or less vulnerable sector.”

Mixue has emerged as a heavy cycle of the sector, which runs more than 46,000 stores worldwide by the end of 2024. McDonald’s– Starbucks and subway. Ultra low pricing and the high -volume model are largely leaning on franchising.

“They are growing by about 22% in terms of new store growth in 2024.”

Franchising is located at the center of the bubble tea industry. Most large bubble tea chains do not run shops themselves. Almost every exit is franchised. While the main companies earn from supplying and collecting equipment and paying wages, franchise holders shoulders the costs of rent, labor and public services.

This model fueled rapid growth, but it comes with compromises: it becomes difficult to maintain quality and avoid stores cannibalization, as sales points increase.

“For the owner of the business, the normal repayment time for the franchise owner is between 18 and 24 months.” He said.

However, overseas expansion is not a guarantee of success. CNBC’s Chinese correspondent Elaine Yu said that copying the domestic formula abroad came with additional difficulties.

“It is more difficult to control supply chains and consumer tastes are different from city to city. So brands adapt to regional delicacies and different store formats to win local customers.” He said.

At home market saturation, increasing costs and intensive price wars also test the flexibility of these brands. Whether they will maintain their values, depending on their ability to balance the scale with profitability and prove that they can build more than just one enthusiasm.

Click the video at the beginning of the story to watch the full explanatory.