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Vietnam’s bubble tea gold mine attracting investors
INVESTORS are flocking into the bubble tea market as demand for the product is booming across Vietnam.
Market researchers have found the market is growing at 20 per cent a year and reached $300 million two years ago.
There are over 100 brands already and many more famous names are flocking in.
In large cities like Ho Chi Minh City and Hanoi, it is easy to find bubble tea stores belonging to major brands like Alley, Gongcha, Phuc Long, Ten Ren and Royaltea.
There are also smaller stores with cheaper prices run by small business people.
Seeing the demand, many coffee chains like Highlands and The Coffee House and restaurants have added bubble tea to their menu.
Besides bubble tea simply being a popular drink for various age groups, the shops selling it have become a haunt for youngsters because of their facilities and decor.
A spokesperson for a famous brand name, Gong Cha, said: “Competition in bubble tea market in Vietnam is a marathon.
“Bubble tea has established itself on the Vietnamese food and drink scene. Bubble tea shops are no longer just places selling beverages. They are places featuring a speciality totally different from traditional places like coffee stores and restaurants.”
Brand expert Vo Van Quang was quoted as saying by Nguoi Lao Dong (The Labourer) newspaper that the popular drink in Hong Kong and Taiwan has undergone many changes in the Vietnamese market with many toppings to match Vietnamese tastes.
“Milk tea is now a popular drink among Vietnamese youth.”
Most of the milk tea brands have come to Vietnam as franchises, he said.
“At prices of 30,000 dong [$1.30] to over 80,000 dong [$3.45], bubble tea is bringing in huge profits. That is why foreign brands are keen on franchising in Vietnam.”
A bubble tea shop is much cheaper to set up than a coffee shop while the profits are huge, he said.
Dao Duy Khuong, a retail expert, said milk tea, unlike coffee and tea, targets youths in big cities, and this demographic’s consumption behaviour is trendy meaning investors should change their offerings frequently.
It is not surprising several brands closed in recent times, he added. VIET NAM NEWS/ANN
Source: https://www.phnompenhpost.com/business/vietnams-bubble-tea-gold-mine-attracting-investors