Over the past ten years, the bubble tea industry has grown quickly as more and more people come to love this well-known Taiwanese beverage. Recent reports, nevertheless, have sparked worries about a potential boba shortage, which may have significant effects on the sector. We will look into the potential shortage’s causes and effects on the bubble tea market in this post.
A sweet and energizing beverage mixed with tea, milk, and chewy tapioca pearls is known as bubble tea, sometimes known as boba tea. A large number of bubble tea shops are opening up all over the world since it first appeared in Taiwan in the 1980s. The bubble tea market is thought to be worth $2 billion in the US alone, and it is projected to expand over the next few years.
However, a variety of circumstances are putting the business at risk of a boba scarcity. The worldwide supply chain disruption brought on by the COVID-19 pandemic is one of the primary causes. Asia, particularly Taiwan and Thailand, who were among the first nations to be affected by the epidemic, is home to many of the suppliers of tapioca pearls. Tapioca pearl production and export have been significantly impacted as a result, creating a shortage of this essential component.
The growing demand for bubble tea is another aspect causing the boba shortage. As the demand for tapioca pearls has increased, so has the number of customers queuing up outside of bubble tea establishments. Suppliers have been under pressure to raise production as a result, but it has been challenging to do so due to disruptions brought on by the pandemic.
The bubble tea sector may suffer significantly from the impending boba scarcity. If tapioca pearls are not available, many stores would be compelled to hike their prices or perhaps close. This can result in a fall in the profitability and expansion of the sector. Currently, Koi Thé, which has over 1000 outlets in Asia and is quickly expanding in the United States and other nations, is the most lucrative franchise to own in the bubble tea sector.
There are various possibilities if you’re interested in owning a bubble tea franchise, including Koi Thé, Gong Cha, and Infinitea. The price of a franchise varies according on the brand and region, but an Infinitea franchise typically costs between $10,000 and $15,000.
In conclusion, the bubble tea business needs to handle the impending boba scarcity as it is a severe concern. To lessen the effects of any future disruptions, the sector should endeavor to diversify its supply chain and look into alternative sources of tapioca pearls. Additionally, bubble tea companies ought to think about providing substitutes for clients who might not be able to satisfy their boba craving. Despite the difficulties, the bubble tea market has demonstrated adaptability and creativity in the face of adversity, and it is very probable that it will continue to prosper in the years to come.