Gong cha, the renowned bubble tea brand originally from Taiwan, is setting its sights on the Middle East market, leveraging its popular Milk Foam Slush Series to cater to the region’s unique climate and consumer preferences. With a desert environment that fosters year-round demand for refreshing beverages, Gong cha believes that its signature iced drinks will resonate well with local customers. Keaton Myburgh, the Franchise Business Leader for Gong cha in the Middle East, emphasized that the absence of distinct seasons in the region allows for a continuous enjoyment of cold beverages like bubble tea.
The bubble tea market in the Middle East is gradually becoming more competitive, with established players such as CoCo and Tealive announcing their expansion plans after Gong cha’s successful launch in Riyadh last July. Founded in 2006, Gong cha has expanded its reach to 28 markets worldwide, and its entry into the Middle East marks a significant step in its global strategy.
Myburgh noted that consumers in this region have a penchant for socializing outside their homes, coupled with the financial means to indulge in premium beverages more frequently. This trend aligns with the global bubble tea market’s growth trajectory, which was valued at approximately $2.46 billion in 2023 and is projected to expand at an annual growth rate of 7.7%, reaching around $4.78 billion by 2032, according to Fortune Business Insights. The Asia-Pacific region currently dominates this market, holding a substantial share of 42.68%.
During their initial market research, Gong cha discovered that Middle Eastern consumers gravitate toward richer and more indulgent flavors, such as brown sugar and other decadent options. This insight prompted the company to tailor its menu specifically for this demographic. Myburgh explained that this approach contrasts with other markets where fruit teas are more popular. “We ensured that we launched a menu in the Middle East that was well suited for the market,” he stated.
To facilitate brand recognition and product appreciation among local consumers—many of whom have traditionally favored coffee—Gong cha has undertaken extensive marketing efforts. This includes sharing the brand’s heritage and story while providing sampling opportunities in-store to encourage trial and adoption of their products. Myburgh remarked on the importance of educating customers about Gong cha’s offerings: “We wanted them to understand the product from tea garden to cup, ultimately helping them find their favorite flavor.”
In January, Gong cha solidified its commitment to the Middle East by signing a significant master franchise agreement with Shahia Foods Group, which aims to open hundreds of stores across the region. The franchise agreement outlines plans for at least 300 Gong cha outlets over the next decade, with immediate expansions planned in Bahrain and the United Arab Emirates by 2025.
Myburgh highlighted that accessibility is crucial for success in this competitive landscape. “We want to make sure that when customers want our product, they don’t have to drive too far to get it,” he explained. Currently, four additional outlets are under construction as part of their expansion strategy.
Understanding cultural nuances is vital for Gong cha’s success in the Middle East. The company recognizes that local tastes and preferences differ significantly from those in other regions where it operates. By focusing on indulgent flavors and creating a welcoming environment for customers, Gong cha aims to establish itself as a go-to destination for bubble tea enthusiasts.
The company’s strategy reflects broader trends within the beverage industry, where consumer demand increasingly leans toward unique and luxurious experiences. As more people seek out high-quality drinks that offer both flavor and aesthetic appeal, Gong cha is poised to capitalize on this trend by providing innovative products tailored specifically for Middle Eastern consumers.
As Gong cha embarks on its journey in the Middle East, its focus on decadent drinks and strategic expansion plans highlight its commitment to capturing this growing market. With a solid understanding of local preferences and a dedication to providing exceptional customer experiences, Gong cha aims not only to thrive but also to redefine bubble tea culture within this vibrant region.
By leveraging its unique offerings and expanding accessibility through new outlets, Gong cha is well-positioned to become a leading player in the Middle Eastern beverage landscape.
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