The iced tea market is undergoing a significant transformation, moving beyond traditional offerings to embrace innovative beverages such as milk, fruit, and boba teas. These modern iterations, which have their origins in Asia, are rapidly gaining traction in the United States, where they are often characterized by chewy tapioca pearls—commonly referred to as “boba” or “bubble” tea—that can be enjoyed through wide straws.
According to a recent report by Fortune Business Insights, the global bubble tea market was valued at approximately $2.46 billion in 2023 and is projected to nearly double, reaching $4.78 billion by 2032. Much of this growth is attributed to the expanding popularity of bubble tea in the U.S., where a mix of independent shops and franchise chains are emerging across the country.
Tin Do, CEO of Krak Boba, which launched in the summer of 2020 and has since expanded to 28 locations across eight states—including California, Florida, New Jersey, Arizona, Texas, Colorado, and Nevada—believes that boba is on an upward trajectory. “There’s a lot of people that don’t know about boba yet,” he notes, highlighting the untapped potential in the market.
Gong cha, a brand with 18 years of experience in the industry, has similarly witnessed rapid expansion. Geoff Henry, president of Gong cha Americas, stated that the company currently operates around 2,220 stores globally and has opened nearly 600 locations in just five years. Despite the challenges posed by the pandemic, Gong cha continued to grow and aims to reach 5,000 stores within the next few years.
A significant factor contributing to the success of both Krak Boba and Gong cha is their emphasis on customization. This approach not only enhances customer satisfaction but also allows for an extensive variety of drink options. Gabriela Parck, Gong cha’s senior manager of training operations for the Americas, explains that customers can explore up to 600 drink combinations by choosing from ten different toppings and adjusting sugar levels across four tea bases: black, Earl Grey, oolong, and green.
Collaborations with well-known brands have also helped attract repeat customers at Gong cha. Recent partnerships include unique offerings such as Hershey’s cookies and cream milk tea and spicy drinks featuring Frank’s RedHot sauce. “People came in to try these drinks and then tried other things too,” Parck adds.
Authenticity remains at the core of both brands’ offerings. Ingredients are sourced directly from Asia whenever possible, emphasizing whole foods over powdered alternatives. For instance, Krak Boba’s Dragon Slayer drink features fresh dragon fruit and mango purees. Do even incorporates family recipes into his menu; his mother’s taro recipe is used in popular drinks like Taro Crush.
Parck shares her commitment to quality as a certified tea sommelier at Gong cha: “Understanding the mouthfeel of tea and its flavors gives me a deeper respect for what we carry.” The brand prides itself on sourcing high-quality whole-leaf tea from some of Asia’s finest estates.
Both brands are also keen on seasonal innovation. Krak Boba recently introduced five new drinks including Matcha Prince and CocoThai Butterfly. Similarly, Gong cha has launched seasonal offerings that celebrate popular flavors during specific times of the year. For example, their Thyme Mango drink features layers of passionfruit jelly topped with mango drizzle—a refreshing choice for summer.
As younger generations increasingly favor cold beverages over hot ones for social gatherings, both Krak Boba and Gong cha are well-positioned to capitalize on this trend. With their focus on refreshing flavors and customizable options that cater to evolving consumer preferences, these brands are set to thrive in an increasingly competitive market.
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