Milk Tea Franchise Market Analysis: Segments, Challenges, and Top Players

Milk Tea Franchise Market Size

The global milk tea franchise market was valued at USD 23.8 billion in 2024 and is projected to grow from USD 26.3 billion in 2025 to USD 45.6 billion by 2030, registering a CAGR of 10.2% during the forecast period (2025–2030).

Market Overview

Milk tea franchises offer a variety of tea-based beverages combining traditional tea leaves with milk, flavorings, and toppings such as tapioca pearls, pudding, and fruit jelly. The market spans bubble tea, cheese tea, and fruit-infused tea formats served in standalone kiosks, café outlets, and food courts. Growth is fueled by consumer demand for customizable, premium beverages and the global proliferation of Asian-inspired tea culture.

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Market Drivers

1. Rising Millennial and Gen Z Consumption
2. Younger consumers seek novel flavors, interactive ordering experiences, and social media–friendly beverages. Milk tea franchises leverage limited-edition menu items and brand collaborations to engage digitally savvy audiences, driving repeat visits.
3. Digital Ordering and Delivery Integration
4. Pandemic-accelerated adoption of mobile apps and third-party delivery platforms has expanded franchise reach. Integrated loyalty programs, contactless payment, and real-time order tracking enhance customer convenience and boost average transaction values.
5. Premiumization and Customization Trends
6. Premium ingredients such as matcha, Oolong tea, and plant-based dairy alternatives command higher price points. Customizable sugar and ice levels, along with add-on toppings, enable operators to upsell and cater to health-conscious preferences.
7. Franchise Expansion in Emerging Economies
8. Southeast Asia, Latin America, and the Middle East present untapped potential as urbanization and disposable incomes rise. Brands like Gong Cha and Chatime prioritize market entry through master franchise agreements and localized menu adaptations.

Market Challenges

1. Supply Chain Vulnerabilities
2. Dependence on imported tea leaves, dairy products, and specialized ingredients exposes franchises to raw-material shortages, currency fluctuations, and logistics disruptions.
3. Intense Competitive Landscape
4. Low barriers to entry have led to fragmented markets with numerous local and regional players. Brands must differentiate through innovation, brand-building, and superior customer service to maintain market share.
5. Health and Regulatory Concerns
6. Rising scrutiny of sugar content and artificial additives drives demand for cleaner labels and transparent nutrition information. Regulatory changes such as sugar taxes may impact pricing strategies and consumer acceptance.
7. Optional Impact of War on Current Market
8. Geopolitical conflicts can disrupt supply chains for tea and dairy imports, increase commodity prices, and constrain consumer spending in affected regions. Franchises may need to source local ingredients and adjust pricing models to mitigate risks.

Market Segmentation

According to Deep Market Insights research, the milk tea franchise market is segmented as follows:

By Tea Type (XYZ):

• Black Tea–Based Franchises dominate due to traditional flavor profiles and broad consumer acceptance.
• Green Tea–Based Franchises grow rapidly on health and antioxidant claims.
• Herbal and Fruit Tea Franchises capture niche demand for caffeine-free and functional beverages.

By Outlet Format (ABC):

• Standalone Café Outlets account for the largest revenue share, offering full menus and dine-in experiences.
• Kiosk and Food Court Franchises lead unit growth in high-traffic malls and transit hubs.
• Mobile and Pop-Up Franchises provide low-cost market testing and event-based sales opportunities.

By Region:

Asia-Pacific leads with over 60% market share, driven by bubble tea’s origins in Taiwan and China. North America is the fastest-growing region, fueled by urban food halls and college campus expansions. Europe and Latin America follow, with emerging local brands and international franchise entries.

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Top Players Analysis

Key industry participants are aggressively expanding through multi-brand strategies, digital partnerships, and menu innovations:

Gong Cha International leverages global master franchise networks and continuous product innovation to retain leadership in Asia-Pacific and expand in North America.

Chatime Global Holdings focuses on operational efficiency and co-branding partnerships to enter emerging markets in the Middle East and Latin America.

CoCo Fresh Tea & Juice emphasizes brand consistency and digital engagement, achieving rapid growth through standalone stores in major U.S. cities.

Tiger Sugar differentiates with signature brown sugar boba and premium milk formulas, targeting Gen Z preferences across Southeast Asia.

Sharetea International maintains strong R&D capabilities and localized menu offerings to adapt to varied regional tastes.

Additional major players profiled in the Deep Market Insights report include The Alley, 50 Lan, Yi Fang Taiwan Fruit Tea, and Boba Guys, each pursuing aggressive franchise rollouts and strategic partnerships to capture market share.

Future Outlook

The milk tea franchise market is poised for continued double-digit growth through 2030, driven by evolving consumer preferences, digital integration, and expansion into untapped regions. Innovations such as AI-powered order kiosks, sustainability initiatives with biodegradable packaging, and functional tea variants (e.g., collagen or vitamin infusions) will further differentiate brands. Franchisors that balance global brand standards with local market customization and maintain agile supply chains will gain competitive advantage.

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Frequently Asked Questions

• What is the milk tea franchise market size and forecast?
• According to deep market research, The market was USD 23.8 billion in 2024, projected to reach USD 26.3 billion in 2025 and USD 45.6 billion by 2030, at a CAGR of 10.2%.
• Which tea types lead the market?
• Black tea–based franchises hold the largest share, followed by green tea based concepts and herbal/fruit tea offerings.
• What drives market growth?
• Key drivers include rising Gen Z and millennial demand, digital ordering integration, premiumization trends, and expansion in emerging economies.
• What are the main challenges?
• Challenges include supply chain vulnerabilities, intense competition, health and regulatory scrutiny, and potential geopolitical disruptions.
• Which regions offer the greatest opportunities?
• Asia-Pacific leads market size; North America is the fastest-growing region. Europe and Latin America present emerging franchise prospects with localized menu adaptations.

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