Economic slowdown changes bubble tea consumption trends in China
(MENAFN) Bubble tea, a favorite among young people in China due to its sweet flavors and vibrant colors, is facing a decline in popularity as economic conditions tighten. The latest statistics reveal that unemployment rates among individuals aged 16 to 24 in China surged to 17.1 percent last July, marking the highest level this year. This economic strain has impacted household spending, with families increasingly opting for lower-priced goods and cutting back on discretionary purchases, including bubble tea.
Despite its wide appeal, bubble tea—an industry valued at over USD21 billion last year—has not escaped the effects of the economic downturn. The market, known for its innovative tea-based beverages with milk, fruit, sugar, jelly, cream, and tapioca starch, is experiencing a shift in consumer behavior. Many young consumers are now hesitant to indulge in these beverages, which could weaken the sector. Additionally, the rapid expansion of bubble tea outlets in major cities and shopping malls has led to market saturation, according to Stacey Chen, an expert with a significant following on social media. Chen’s online reviews and comparisons of bubble tea offerings reflect the growing concern about the sector's future amidst these economic challenges.
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