Milk Tea Franchise Market Size
The milk tea franchise market size was valued at USD 2.41 billion in 2024 and is projected to grow from USD 2.78 billion in 2025 to USD 5.89 billion by 2030, expanding at a CAGR of 13.1% during the forecast period (2025–2030). The market growth is driven by high-profile beverage collaborations that enhance functional and beauty-focused offerings, alongside a rising demand for premiumization and an experiential beverage culture.
Key Market Insights
- The bubble milk tea segment dominates product type, serving as the flagship item for most franchises due to its wide appeal and social media visibility.
- Asia-Pacific leads the global market, driven by deep cultural integration, high customization, and innovation originating from Taiwan, China, and Southeast Asia.
- Specialty beverage outlets are the top distribution channel, offering immersive brand experiences that encourage customer loyalty and walk-in traffic.
- North America sees strong growth, supported by multicultural demographics, digital ordering, and a lifestyle-driven café culture.
- Europe is transitioning from niche to mainstream, fueled by interest in East Asian cuisine and demand for clean-label, health-conscious beverages.
What are the most recent trends in the milk tea franchise market?
Health-Focused Formulations and Functional Add-ons Reshape Menus
As wellness and dietary awareness take center stage, the milk tea franchise market is shifting toward health-focused formulations and functional innovations. Traditional high-sugar, dairy-based recipes are being replaced with plant-based milks like oat, almond, and soy, along with natural sweeteners such as stevia and monk fruit. Consumers now seek nutritional transparency and dietary flexibility. To meet these evolving preferences, some brands are also incorporating functional add-ons like collagen, probiotics, and adaptogens, offering added wellness benefits in each cup.
- For instance, as of March 2025, Gong Cha and Kung Fu Tea began offering expanded customization features on their menus, allowing customers to adjust sweetness levels and opt for sugar-free and vegan-friendly options, including drinks enhanced with probiotics or chia seeds for digestive and wellness benefits.
Beyond health, sensory appeal, and sustainability are shaping the milk tea market, with eye-catching flavors and eco-friendly practices driving brand differentiation. These innovations help franchises thrive in an increasingly competitive global landscape.
Tech-Enabled Customization and Functional Innovation in Milk Tea Franchising
As the milk tea industry evolves beyond indulgent beverages, the integration of food tech, health science, and digital personalization is reshaping how franchises attract and retain modern consumers. Smart customization tools, AI-driven ordering platforms, and nutritional enhancements are enabling brands to meet growing demand for functional benefits, clean-label ingredients, and tailored drink experiences. This tech-forward shift is particularly appealing to urban Gen Z and millennial customers who expect convenience, wellness, and innovation in every sip.
- In January 2025, Robust in China rolled out a groundbreaking low-GI milk tea sweetened with tagatose, featuring four types of probiotics totaling 120 billion CFU, offering a clean-ingredient formulation with authentic tea and no added additives.
Milk tea franchises are blending wellness and tech, using functional ingredients and smart menus to deliver health-focused, flavorful experiences in today’s digital food culture.
What are the key growth factors in the tea franchise market?
Favorite-Bev Collaborations Boosting Functional and Beauty-Focused Offerings
A powerful catalyst for growth in the milk tea franchise arena is the rise of collaborations between beverage brands and beauty or wellness firms. These partnerships are ushering in beauty-boosting tea drinks infused with collagen, vitamins, and antioxidants targeted at consumers seeking functional, multi-benefit beverages.
- On November 8, 2024, HEYTEA partnered with marine collagen brand Vida Glow to launch “Ocean’s Glow,” a limited-edition drink. Featuring jasmine green tea, mango, coconut milk, spirulina, and collagen, it blended wellness with visual appeal. Available in select UK and Australian stores, it promoted beauty benefits and Instagram-worthy aesthetics.
Smart partnerships are turning milk tea brands into lifestyle hubs, blending beauty and tea to attract wellness-focused Gen Z and millennials.
Rising Demand for Premiumization and Experiential Beverage Culture
Rising demand for premium beverage experiences is driving growth in the milk tea franchise market, especially in urban areas. Consumers now seek high-quality ingredients, artisanal flavors, eye-catching presentations, and immersive brand experiences that align with their identity. Franchises are responding with premium teas, handcrafted syrups, seasonal collections, and exclusive toppings. Enhanced store design, storytelling, and creative packaging elevate the overall journey, both in-store and online. Limited-edition drinks, color-changing teas, and themed pop-ups boost engagement and loyalty. As a result, premiumization and experiential marketing are now key strategies for standing out in a crowded global market.
What are the restraints for the global market?
Operational Challenges in Maintaining Product Consistency Across Franchise Networks
Maintaining consistent product quality and customer experience across widespread milk tea franchises is a major challenge. Variations in ingredient sourcing, staff training, and equipment calibration can affect taste and texture, impacting brand reputation. Local sourcing due to supply or regulatory issues, along with inexperienced operators, often leads to inconsistencies, especially in busy outlets. Customization options like sugar levels or plant-based milk add further complexity. To uphold standards, franchisors must invest in ongoing training, inspections, and tech support, increasing operational costs and slowing scalability. These execution gaps remain a key restraint in delivering a uniform, premium experience.
High Sensitivity to Regional Taste Preferences and Cultural Barriers
A key challenge in the global market is adapting to diverse regional tastes and cultural norms. Preferences for sweetness, toppings, and texture vary widely. Tapioca pearls are loved in Asia, while Western consumers may favor fruit-based or smoother options. Global brands often struggle to balance standardization with localization, risking brand dilution or poor market fit. Dietary factors like lactose intolerance, halal requirements, and sugar sensitivity further complicate menu development. These cultural nuances hinder uniform marketing and product strategies, making seamless international expansion a complex and ongoing challenge for franchises.
What are the key opportunities in the milk tea franchise market?
Grassroots Viral Brands Fueling Localized Franchise Growth
One of the most compelling opportunities in the milk tea franchise space is the rise of viral, grassroots-inspired brands that scale rapidly through storytelling and cultural resonance. These models demonstrate that authenticity and virality can translate into serious business traction, even surpassing traditional franchise strategies.
- In July 2025, the viral tea vendor Dolly Chaiwala from Nagpur launched the “Dolly Ki Tapri” franchise and received over 1,600 applications within two days, signaling strong demand for culturally rooted, high-visibility milk tea concepts in India.
Micro brands are scaling fast through social buzz, local fandom, and low-cost models, offering a quick, emotional path to growth and loyalty.
Adoption of Self-Service and Automated Dispensing Technologies
A major opportunity in this market is the rise of self-service kiosks and automated beverage systems, which enhance speed, reduce labor costs, and boost accuracy, especially in high-traffic areas like malls and campuses. These platforms let customers personalize orders by choosing sugar levels, toppings, and sizes, improving satisfaction and efficiency. For operators, automation provides real-time data for menu optimization and inventory management, while minimizing the need for skilled labor and reducing preparation inconsistencies. As digital-first experiences gain traction, these technologies offer a strategic edge, supporting seamless expansion and appealing to today’s convenience-focused consumers.
Product Type Insights
The bubble milk tea segment dominates the milk tea franchise market due to its broad appeal, customizable flavors, and signature tapioca pearls that define the modern milk tea experience. Widely popular in Asia and growing in regions like North America, Europe, and the Middle East, it remains the flagship product for most franchises. Brands like Tiger Sugar and CoCo Fresh Tea & Juice have expanded offerings with brown sugar pearls, cheese foam, and oat milk to meet evolving tastes. Its layered, eye-catching presentation fuels social media marketing and impulse buys, making bubble milk tea essential for brand visibility and profitability.
Distribution Channel Insights
Specialty beverage outlets lead the global market by offering immersive, brand-centric experiences. Positioned in high-traffic areas like malls and campuses, they attract walk-ins and foster local engagement. These outlets ensure consistent quality, service, and branding, vital for customer trust. Often designed as lifestyle spaces, they feature aesthetic interiors, customizable drink stations, and loyalty programs. Seasonal menus, limited-time offerings, and in-store events keep customers returning. By combining atmosphere with product, these outlets build strong emotional connections, offering a personalized experience that digital platforms alone often can't replicate.
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Regional Insights
Asia-Pacific
Asia-Pacific dominates the global market due to its role as the origin and innovation hub of bubble tea culture. Strong local demand, a high level of product customization, and deep cultural integration of tea-based beverages drive continued growth across countries like Taiwan, China, and Southeast Asia. Influencer marketing, mobile ordering apps, and localized flavors have further propelled franchise scalability. The region also serves as a testing ground for new ingredients, drink formats, and packaging innovations, which are later adopted globally. With its fast-paced consumer environment and deep-rooted tea traditions, Asia-Pacific continues to set the tone for product trends, operational models, and marketing strategies across the industry.
North America
North America holds a leading position thanks to its multicultural demographics, strong café culture, and the popularity of Asian fusion trends. The presence of large student populations and tech-savvy consumers further supports franchise expansion. Milk tea is often positioned as a lifestyle beverage, benefiting from social media-driven aesthetics and a preference for customized experiences. Franchises in the region are actively integrating digital loyalty systems and touchless kiosks, enhancing customer engagement. The market also sees a growing emphasis on premium ingredients and sustainability-focused practices, reflecting broader consumer expectations. These dynamics create a fertile ground for long-term brand growth and innovation.
Europe
Europe is growing steadily, driven by rising interest in East Asian cuisine, evolving café habits, and demand for health-conscious beverage options. A focus on clean labeling and allergen transparency also makes the region attractive for franchise operations. University towns and urban centers are key entry points, where consumers seek both novelty and health-aligned choices. Franchises are also adopting localized marketing campaigns, often highlighting wellness themes and regional collaborations. As milk tea becomes more familiar, the European market is expected to evolve from niche appeal to mainstream adoption. Consumer curiosity, regulatory support, and rising exposure to global food culture are supporting sustained growth.
Latin America
Latin America is expanding as younger consumers embrace new global food trends. Regional adaptations and increased digital access are helping franchises connect with local audiences despite infrastructure challenges. Brands are experimenting with tropical flavor profiles and hybrid offerings to match regional palates. Mall-based outlets, pop-up concepts, and delivery-focused models are becoming more common, especially in urban areas. Digital influencers and social media campaigns are playing a vital role in building awareness and aspirational demand. While the market is still maturing, its youthful demographics and evolving tastes offer strong long-term potential for innovative, adaptive franchises.
The Middle East and Africa
Middle East and Africa (MEA) show emerging potential, fueled by a youthful population, high consumer spending in urban centers, and increasing popularity of global lifestyle brands. Café culture and seasonal events are helping raise awareness and demand. In the Middle East, luxury malls and event venues serve as strategic franchise locations, while in Africa, mobile-first consumers are driving demand through app-based ordering. Franchises are gradually adapting to cultural preferences, including halal certification and localized menu offerings. Although infrastructure and awareness present initial hurdles, the region’s untapped markets and digital connectivity point to promising future expansion.
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Company Market Share
The global milk tea franchise market share remains moderately fragmented, characterized by regional leaders and a rising cohort of niche and lifestyle-driven brands. While no single franchise holds a dominant global position, several have secured strong regional presences through targeted branding, innovative menu development, and tailored market expansion strategies.
Tealive (Southeast Asia): Tealive, formerly Chatime Malaysia, has grown to 800+ outlets by localizing flavors like gula melaka and pandan. Now expanding into Australia and the UK, it's emerging as a Southeast Asian-led global contender.
Boba Guys (U.S.): San Francisco-based Boba Guys targets health-conscious urban consumers with organic milk, house-made syrups, and loose-leaf teas. Though it operates just ~30 outlets, it’s recognized as a premium “craft boba” brand in key U.S. cities.
Latest News:
In July 2025, Gong Cha rolled out AI-powered self-order kiosks in 50+ Singapore stores, offering facial recognition and real-time personalization. The move reflects a rising trend toward automation to boost customer experience and cut wait times.
Key Players in the Milk Tea Franchise Market
- Gong Cha
- Chatime
- Tealive
- Boba Guys
- Koi Thé
- The Alley
- CoCo Fresh Tea & Juice
- Tiger Sugar
- Sharetea
- Happy Lemon
Recent Developments
- In June 2025, Indonesian brand Ai CHA rapidly opened 300 outlets across Malaysia, targeting budget-conscious consumers with affordable milk tea and ice cream. Its success stems from a low-cost franchise model, minimalist store design, and popular items like brown sugar milk tea and durian soft-serve, focused on high-traffic urban zones.
- In February 2025, YOYO! Fresh Tea debuted in Bangalore with India-inspired flavors like masala chai bubble tea and saffron milk. Targeting digital-savvy youth, it partnered with Swiggy and Zomato, with Pune and Hyderabad outlets coming soon.