Bubble tea connoisseurs in Southeast Asia spend $3.66 billion a year on the drink and its many variants, a new study by Singapore-based tech venture capitalist Momentum Works and digital payments firm Qlub found.
The largest consumer market in Southeast Asia is Indonesia, with an estimated annual turnover of US$1.6 billion.
Thailand came in second with $749 million in revenue from more than 31,000 bubble tea shops and other retail channels.
Vietnam was third with $362 million and Singapore was fourth with $342 million.
best price in singapore
Despite having the smallest population of the six major markets in the region, Singapore has the highest spending power, the report found. As a result, the average price of bubble tea in Singapore is double that of other countries in the region.
“This makes it a good entry point for premium brands,” Momentum Works said in a statement, adding that there are currently more than 60 active bubble tea chains in the region.
Weak profitability
However, the study found that few bubble tea shops are profitable despite generally higher profit margins.
“The product gross profit margin in the bubble tea industry is as high as 60% to 70%,” the release said.
“However, very few players are consistently profitable on a large scale,” it added, noting that “there is also an industry that says nine out of ten bubble tea shops are losing money.”
Ease of access, healthier options are key factors
The study also highlights that pricing is not the only factor influencing customers’ purchasing decisions.
“Customers also make decisions based on a store’s product selection and ease of access, which means the number of stores a brand has,” it said.
Consumer decisions are also increasingly based on more health-conscious choices and the nutritional value of beverages, the study found, meaning chains that offer “healthier” alternatives may be favored in the future.
invented in Taiwan
Bubble tea is a tea-based beverage that originated in Taiwan in the early 1980s and has grown in popularity in China, where the market is now estimated to generate $20 billion a year.
The drink is most commonly a blend of tea, milk, sugar and chewy tapioca balls, but there are many other variations on the market, namely drinks with ingredients like grass jelly, aloe vera, red beans and more.
Bubble tea connoisseurs in Southeast Asia spend $3.66 billion a year on the drink and its many variants, a new study by Singapore-based tech venture capitalist Momentum Works and digital payments firm Qlub found. The largest consumer market in Southeast Asia is Indonesia, with an estimated annual turnover of US$1.6 billion. Thailand came in second with $749 million in revenue from more than 31,000 bubble tea shops and other retail channels. Vietnam was third with $362 million and Singapore was fourth with $342 million. Singapore, the most expensive Singapore, has the highest spending power despite having the smallest population…
Bubble tea connoisseurs in Southeast Asia spend $3.66 billion a year on the drink and its many variants, a new study by Singapore-based tech venture capitalist Momentum Works and digital payments firm Qlub found.
The largest consumer market in Southeast Asia is Indonesia, with an estimated annual turnover of US$1.6 billion.
Thailand came in second with $749 million in revenue from more than 31,000 bubble tea shops and other retail channels.
Vietnam was third with $362 million and Singapore was fourth with $342 million.
best price in singapore
Despite having the smallest population of the six major markets in the region, Singapore has the highest spending power, the report found. As a result, the average price of bubble tea in Singapore is double that of other countries in the region.
“This makes it a good entry point for premium brands,” Momentum Works said in a statement, adding that there are currently more than 60 active bubble tea chains in the region.
Weak profitability
However, the study found that few bubble tea shops are profitable despite generally higher profit margins.
“The product gross profit margin in the bubble tea industry is as high as 60% to 70%,” the release said.
“However, very few players are consistently profitable on a large scale,” it added, noting that “there is also an industry that says nine out of ten bubble tea shops are losing money.”
Ease of access, healthier options are key factors
The study also highlights that pricing is not the only factor influencing customers’ purchasing decisions.
“Customers also make decisions based on a store’s product selection and ease of access, which means the number of stores a brand has,” it said.
Consumer decisions are also increasingly based on more health-conscious choices and the nutritional value of beverages, the study found, meaning chains that offer “healthier” alternatives may be favored in the future.
invented in Taiwan
Bubble tea is a tea-based beverage that originated in Taiwan in the early 1980s and has grown in popularity in China, where the market is now estimated to generate $20 billion a year.
The drink is most commonly a blend of tea, milk, sugar and chewy tapioca balls, but there are many other variations on the market, namely drinks with ingredients like grass jelly, aloe vera, red beans and more.
