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Bubble tea boom: CoCo Fresh Tea & Juice to explore “untapped potential” of South Asia

Tag：Tea CoCo South Asia 2023-08-30 09:23

Boba tea brand CoCo Fresh Tea & Juice plans to grow its reach in South Asia amid significant interest from franchisees and entrepreneurs in the region. By expanding its footprint, the company will focus on partnerships with notable refreshment players and master franchisors.

“Our confidence level is high that South Asia is the next major market for bubble tea globally,” says the boba tea brand with a significant global footprint spanning the US and Europe.

The global demand for the East Asian refreshment has driven this move.

Staying strong amid global headwinds

Lately, South Asia’s economy has shown resilience in the face of global headwinds, flags the company.

With a promising bubble tea market, expected to grow from US$2.46 billion in 2023 to US$4.08 billion by 2030 at a CAGR of 7.51%, the conditions to expand the segment seem favorable.

Bubble tea boom: CoCo Fresh Tea & Juice to explore “untapped potential” of South Asia

With a promising bubble tea market, expected to grow from US$2.46 billion in 2023 to US$4.08 billion by 2030, the conditions to expand the segment seem favorable.

“After reaching 5,000 stores worldwide this year, CoCo has the most international coverage of any pearl milk tea brand,” notes Wang.

The beverage formulator aims to channel this opportunity after encountering “considerable enthusiasm” from South Asian business people to explore bubble tea’s “untapped potential.”

The bubble rises

Tea is a popular beverage worldwide and adding a twist to familiar products with innovations like bubble tea has the potential to attract the Millennial and Gen Z population.

For instance, in interaction with FoodIngredientsFirst at the IFT FIRST event last month, Bell Flavors talked about the concept of “newstalgia,” which includes blending the familiar with the excitement of something new.

Moreover, GNT Group told us earlier this year that today’s consumers not only want their beverages to be functional and healthy but also fun.

Industry leaders state that novel flavors, striking colors, innovative ingredients and convenience are also driving invention, creativity and new developments in the beverage space.

The company notes that bubble tea, already popular in other parts of Asia, the US and Europe, appeals to diverse audiences, especially Gen Z.

The growing market size driven by urbanization and a “booming middle class” in countries like India and Pakistan allows international brands to carve a niche in these regions, says CoCo.

Further, consumer preferences coupled with a growing interest in flavors from other countries and the “Instagram-worthy” appeal of bubble tea uniquely positions the beverage to captivate the younger, more urban populations of South Asia, says the beverage formulator.

Content on platforms such as TikTok has also played a part in instigating bubble tea cravings among consumers.

Customization for flavor amplification

Research conducted by Kerry last year pointed out that even though consumers are seeking flavors linked with health and nutrition benefits, they are also seeking excitement and a sensory experience through newer formats like Frappuccino and bubble tea.

Bubble tea boom: CoCo Fresh Tea & Juice to explore “untapped potential” of South Asia

Bubble tea, already popular in other parts of Asia, the US and Europe, appeals to diverse audiences.

CoCo claims to “embrace customization” to enable formulators to create numerous region-specific flavors to amplify appeal and bridge global trends with local tastes.

Beverage companies are also working toward innovation in the iced tea space with reduced sugar variations for a broader appeal.

With the latest expansion in South Asia, CoCo Fresh Tea & Juice aims to work with franchisees to offer them brand recognition for business growth while successfully allowing customization as per local tastes and training for guidance in running stores.

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