Is it here to stay or just a fad?

Balloon tea may have started as a playful drink, but it has grown into an industry worth billions.

The size of the Global Balloon Market will increase from $ 2.83 billion in 2025 to $ 4.78 billion to 2032, according to A a report By Fortune Business Insights.

This year, three Chinese bubble tea chains-Mixue Group, Guming Holdings and Leanta Jenny-Laid in Hong Kong and raised over $ 700 million as investors are relying on the fast-growing consumer market in China.

“This is the right place at the right time,” said William Ma, Chief Investment Officer at Grow Investment Group, “said in an interview with” an interview with “an interview.CNBC explains.“

“Many world investors are trying to invest in sectors less sensitive to US tariffs. So domestic consumption, the consumption of a higher generation generation, is a more stable or less vulnerable sector,” Ma added.

Mixue has become the heavyweight category of the sector, operating over 46,000 stores worldwide by the end of 2024. This makes it the largest food and drum chain in the world by the number of exit-before McDonald’s., Starbucks And Metro. Its ultra-low price and a large volume model rely heavily on franchising.

“In 2024, they grow to about 22% in terms of the growth of the new store,” Ma noted.

Franchise is central to the tea balloons industry. Most large bubble tea chains do not control the stores themselves. Almost every way out is franchise. Mothers companies benefit from the delivery of ingredients and equipment and collection of fees, while franchisees bear the costs of rent, labor and utilities.

This model nourishes rapid growth, but is available with compromises: maintaining quality and avoiding cannibalization of the store becomes more difficult as retail outlets are multiplying.

“The normal period of payment of the business owner, for the franchisee, is between 18 and 24 months,” MA said, estimating the closure of stores about 20% in the entire market.

But expansion abroad is not a guarantee of success. Chinese CNBC reporter Elaine Yu noted that reproducing the internal formula abroad comes with additional challenges.

“Delivery chains are more difficult to control, and consumer flavors differ from city in city. That’s why brands adapt to regional fragrances and different store formats to win local customers,” Yu said.

Home market saturation, increasing costs and intensive prices also test the stability of these brands. Whether they can maintain their grades will depend on their ability to balance the scale with profitability – and prove that they can build more than just fad.

Watch the full explanient by clicking the video at the top of the story.