Guming Holdings and Mixue Group, two prominent Chinese beverage giants known for their popular bubble teas, have recently submitted applications for initial public offerings (IPOs) in Hong Kong at the beginning of 2024. Positioned as China's second-largest bubble tea chain, Guming is focused on expanding its store network, leveraging technology for operational efficiency, and committing to product innovation. The company also emphasizes strengthening its supply chain within the industrial sector.

In their prospectus, Guming stated, "We have applied to the listing committee for approval of the initial public offerings. As for our future strategy, we will continue to focus on research in food science, enhance our product development capabilities, and enrich our raw material library. We aim to capture emerging trends in the ready-made tea market and optimize our products accordingly."

Mixue, another major player in the Chinese and Southeast Asian bubble tea scene, has outlined plans for a production base in Hainan, China. This facility will specialize in producing frozen fruits, coffee, syrups, toppings, and other key ingredients essential to their popular beverages. Mixue plans to use innovative technology to produce in-house ice cream powder and other dairy products, expand ingredient production, and build supporting facilities for research and development.

The push for IPOs among leisure tea companies is not unprecedented, with Nayuki becoming the first bubble tea brand listed on the Hong Kong Stock Exchange in 2021, setting a precedent in the market.

The global phenomenon of bubble tea, originating from Taiwan in the 1980s, has seen significant growth worldwide. Particularly popular among Millennials and Gen Z for its Instagram-worthy aesthetics and non-alcoholic nature, the bubble tea market is not confined to China. South Asia, especially countries like India and Pakistan, is emerging as the next major market for bubble tea globally due to urbanization and a growing middle class.

The overall growth of the bubble tea market is attributed to rising consumer demand, continuous product innovation, globalization, and increasing interest in Asian food and drinks. The US bubble tea market, in particular, is experiencing rapid expansion, with projections indicating a threefold increase in the coming decade.

However, concerns about the health implications of bubble tea, primarily due to its high sugar content, have led to some consumers expressing reservations. Research suggests that persistent consumption can lead to anxiety and depression-like behaviors, as well as impair cognitive function in mice.

In response to health concerns, the bubble tea industry is undergoing innovations beyond introducing new flavors. Hong Kong-based Mother Pearl is focusing on vegan bubble tea to cater to health-conscious consumers, while US company Boba Guys is transforming the bubble tea experience by introducing dairy-free alternatives such as almond and oat milk, expanding their appeal. Meanwhile, global companies like Cargill are collaborating with tapioca starch producers to enhance specialty offerings in the Asia-Pacific region, catering to the needs of the food and beverage industry across the region.