China’s bubble tea industry is on the move globally as leading milk tea chains, including Guming Holdings Limited, Mixue Ice Cream & Tea, and Sexy Tea, seek to expand beyond their domestic markets. On January 13, Guming Holdings successfully passed its Hong Kong IPO listing hearing, marking its entry as the third Chinese bubble tea maker to go public in the city, following Nayuki and ChaPanda. With nearly 10,000 locations across Asia as of 2024, Guming has posted steady growth, reporting an operating profit of 1.34 billion RMB ($183 million USD) for the third quarter of 2023.
While Guming’s IPO prospects appear strong, the other Chinese bubble tea companies listed in Hong Kong have faced challenges. ChaPanda’s stock plummeted by more than 30% after its debut, while Nayuki’s shares dropped by about 80% following its 2021 listing.
Mixue Ice Cream & Tea, China’s largest bubble tea chain with over 45,000 locations, is also pursuing a Hong Kong listing, though it remains in the pending stage. Known for its affordability and fresh, made-to-order drinks, Mixue is a favorite among students and working-class individuals, offering a regular bubble tea for just 6 RMB (0.80 USD), well below competitors like Guming and ChaPanda.
The company’s expansion strategy has been focused on third-tier cities and Southeast Asia, where its affordable prices and diverse menu catering to local preferences have helped it gain traction.
Meanwhile, Sexy Tea (Chayan Yuese), which blends traditional Chinese themes into its milk tea experience, is bypassing the Hong Kong market in favor of preparing for an IPO in the United States. However, the brand’s cultural specificity—integrating Chinese design and social media engagement—poses a challenge in adapting its concept to international markets, particularly in the U.S., where cultural differences could affect the brand’s acceptance.
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