Growing New Zealand demand for bubble tea will see one of the world’s largest retailers of the product expand its local footprint to 31 outlets over the coming year.
Bubble Tea, or boba tea, is a tea drink made with soft tapioca balls called pearls. Originally created in Taiwan in the 1980s, the beverage has gained popularity in markets around the world.
According to the latest industry data, New Zealand has one of the highest per capita rates of consumption of the Asian beverage, with over 1.7 cups consumed on average by Kiwis annually.
Gong Cha, which has 28 stores in New Zealand, will increase its local presence with the addition of three new stores, having opened its first store just eight years ago.
The expansion is also set to boost local employment, with over 300 retail staff to be employed at its outlets nationwide.
A new Glenfield Mall store will open in late July 2023 as part of a synchronised Global Tea Party event launch which will see it open the brand’s 2,000th store worldwide. The North Shore outlet will be the first of ten international stores to be opened within a 24-hour period, ahead of concurrent openings in Australia, Japan, Korea, Taiwan, Philippines, Canada, Mexico and Boston.
The manager of Gong Cha New Zealand, Marcus Teh, said plans are also underway for an additional three stores in Christchurch, Wellington and Auckland Airport.
“The rate of demand for bubble tea is increasing rapidly, and we are aiming to open 10,000 stores within seven years,” said Teh.
Teh added New Zealand consumers now purchase over three million beverages from the chain annually, boosting revenue by 20 percent over the past year, compared to their global store average of 6.2 percent.
“New Zealand is a key part of this growth story, and we are excited to be expanding our retail offering here - with the Global Tea Party event marking a significant milestone for the company.”
Globally, sales of bubble tea are growing at a rate of eight percent per annum and are expected to reach $6.9bn by 2027.
Teh said the business has consistently sought ways to attract and retain its customer base. This has included developing the first Instagrammable tea space and the introduction of self-order kiosks, including the option to personalise the sweetness of the drink according to the customer’s preference.
