MILKTEA INDUSTRY

Number Of Participants

The famous bubble tea originated in Taiwan and was first served in the 1980s. This refreshing drink is available in various flavors and innovative variations to appeal to people of all ages. Furthermore, the ASEAN Post reports that Asia Pacific was the largest regional market in 2019, with a nearly 35% share (Southeast Asia's Bubble Tea Craze, 2020). Hence, Thailand is one of the primary consumers, as the nation's average monthly bubble tea consumption is six cups per person. In addition, according to Wong (2020), bubble tea orders increased by 3,000% in Southeast Asia in 2018, and the drink has been popping up on menus outside of Asia for quite some time.

Similarly, Xu (2019) mentioned that boba first migrated to the west coast of America in the 1990s, yet it only persisted as a fad not until it grew more popular with a compound annual growth rate of the bubble tea market from 2017-2023 is estimated to be 7.3%. The rising popularity of milk tea will continue to emerge and grow further in the global market due to its distinct taste and health benefits.

Pattern Of Behavior

Bubble milk tea first became popular in the 1990s in Asia. Its consumers have increased in the United States of America and Europe since the year 2000 (Alexander, 2001). Similarly, bubble milk tea has been viral in various countries, especially on social media. Social media users often post their boba milk tea consumption, making it a trend for teenagers and the middle class (Saesieo, 2016). This author adds that some partners exchange bubble milk tea experiences, including recommendations and exchanging pictures of teas of various brands.

From the decision-making perspective, purchasing is a problem-solving process where shoppers go through different stages to solve a need or a problem (Mowen, 1988). The boba milk tea consumers’ behavior are primarily affected by internal and external factors. Law et al. (2020) classified the reasons consumers buy milk tea into reactance, impulse buying, and variety-seeking behavior.

Reactance is the phase wherein consumers are motivated to purchase when they see their behavioral freedom as threatened. Meanwhile, impulse purchase is when a consumer purchases milktea without giving it a second thought.

Long Period Of Time

In the mid-1980s, the city of Tai-nan, Taiwan, invented bubble tea (McNamee, 2022). As bubble tea gained acceptance, particularly in the west, its popularity exploded in 2017, with a 7-year timeframe, with bubble tea cafes reporting a tremendous increase in business (Bubble Tea's Popularity From Across the World - Gong Cha, 2019). According to Fortune Business Insights' (n.d.), demand for bubble tea has been lower than expected in all regions compared to pre-epidemic levels, which is unprecedented and staggering given the global COVID-19 pandemic. The trend peaked in 2019, whereas the global market's growth slowed in 2020.

CAUSE/S

Milk tea, also known as bubble tea or boba tea, is a highly caffeinated and sugary drink made from tea, milk, syrup, and tapioca pearls which originated in Taichung, Taiwan (Reinfrank and Chan, 2019, as cited in Koay and Cheah, 2022). Its sweet flavor captured the taste of the consumers which paved the way for the widespread expansion of milk tea shops throughout malls, parks, and neighborhoods. Well-known brands such as Chatime Group, CoCo, GongCha, and Tiger Sugar which all originated in Asia, became global, and people in other nations seized on the trend by creating their own brand.

When the global market for milk tea franchises expanded, additional firms joined on board to take market share from the profitable industry. With this, milk tea business owners must find ways to maintain existing customers in the face of unavoidable market competition. According to Koay and Cheah (2022), bubble tea store owners or franchisers must guarantee that the products satisfy standard quality expectations, the pricing is acceptable, and the store ambiance is attractive and comfortable in order to boost consumers' views toward revisiting the establishment. Additionally, consumer preferences are also key in obtaining the success of a milk tea business. In a study conducted by Ong et al. (2021), brands, price range, tapioca pearl size, sugar level, amount of ice, cream cheese inclusion, and kind of milk tea were examined to evaluate consumer preferences

Overall, the beverage quickly became a worldwide sensation due to the variety and adaptability of the toppings and flavor combinations that customers could choose.

CONSEQUENCE/S

Economically, according to Future Market Insights (2022), milk tea, also known as boba, has developed a rapid compound annual growth rate of 8.8%. Additionally, this phenomenon was caused by its sudden boost in global popularity and demand, which has been consistently maintained throughout the years. Likewise, the trend of milk tea gave rise to the creation of unique flavors that are influenced by the brewer’s culture and accessibility to ingredients. According to Automize Growth (2022), there are thousands of milk tea flavors that use unique ingredients such as honeydew, taro, and passion fruit which are also accompanied by unique milk tea types such as British, Thai, and Bubble milk tea. Furthermore, in terms of health consequences, consuming milk tea has both health benefits and health risks. The beverage reduces stress and slows down aging while simultaneously increasing the chances of anemia and promoting weight gain.

Charateristics Of A Trend

Milk tea has become popular, particularly among the younger generation and adults. Milk tea is famous due to its tasty twist; it is a perfect refreshment drink because it is cold and ideal for its chill. According to Nguyen (2022), the increasing popularity of tea enhances people's awareness of the health benefits of teas, such as black tea, green tea, and many more. Milk tea grew in popularity alongside it, particularly in emerging economies. Nevertheless, due to the continuous popularity of milk teas, several celebrities continue to promote and endorse various bubble tea brands. Since the young generation is most of the consumers of milk tea, it influences the market's growth and the international business of milk tea.

Furthermore, according to Venturini (n.d.), it captured the attention of youths because of its various colors, flavors, and textures, resulting in its tremendous appeal in numerous countries. According to Fortune Business Insights (n.d.), bubble tea influences the growth of Taiwan's cultural drink, making it known as one of the food businesses in other countries. Additionally, it influences health-conscious consumers' tastes, along with some organic products, because it is tasty, contains creamer, and contains a range of various flavors of milk teas, such as classic milk tea, tiger milk tea, Thai milk tea, and many more, and these milk tea flavors become the preferences of consumers.

Weaknesses

Customer preferences in terms of purchasing milk tea are also based on the weather. Milk tea is usually drank when the weather is hot, so findings pointed out that during the rainy season, many competitors and their rental fee has a massive effect on the milk tea business in terms of their income (De Jesus, 2020).

S.W.O.T ANALYSIS STRENGTHS

Considering the components of milk tea, its sweet and original flavor was its selling point in different regions. Its sweet flavor captured people's hearts and eventually entered the beverage market. With that, the significant spread of milk tea shops has been observed worldwide (Ong et al., 2021, p.2).

Marketing strategy, discount promos, innovation in the product, and extended operating hours are among the top three strengths of the milk tea business (De Jesus, 2020).

The rapid development of social media has played a prominent role in promoting the growth of new tea drinks as there are new-style tea drinks that emphasize the beauty in product and store design, capturing a lot of customers’ attention

It can be very unhealthy for people, especially with diabetes, as milk tea is all about the drinks’ sweetness measured by sugar percentage levels and the tapioca pearls that are also made with sugar.

High-maintenance ingredients used for milk tea include dairy products, fruits, and tea, which makes creating a quality milk tea timeconsuming. Dairy products are highly industrialized, and highquality imported milk is usually used. Fresh fruits are not easy to store, and transport and tea have unstable quality, and the output of famous and high-quality tea that meets the taste requirements is small (Shi et al., 2021).

Opportunities

Offer a variety of milk tea flavors to the consumers, such as the twist of flavors, new combinations, making a small cup size of milk tea available for young consumers, and the likes since fast changing of preferences on each generation happen.

It can help a milk tea business to create more loyal customers. Trendy products, new product to introduce, and innovative technology are also the factors that can help the business to grow (De Jesus, 2020).

Provide more accessible promos, discounts, and coupon cards as a part of a marketing strategy to boost customer interaction and sales.

Threats

Competition between known brand names in terms of the first in coming up with a brand new innovation that will attract new and loyal customers’ attention. Many competitors, similar concepts or services, and price wars affect the milk tea industry (De Jesus, 2020).

Due to the high maintenance and timeconsuming ingredients used in making a milk tea, it is possible for an importation shortage or inventory spoilage that may lead to customers’ dissatisfaction.

The reputation of the milk tea industry is being tainted due to some instances of other consumers drinking too much milk tea, which causes them to be unhealthy.