Steaming No More: Young Indians Cool Off With Boba, Matcha

(MENAFN- Live Mint)

India, the world's tea-drinking heartland and home to sprawling tea estates, is witnessing a shift in consumer tastes as its youngest consumers embrace Southeast Asian variants like boba and matcha.

Boba tea, which originated in Taiwan, is a cold, milk-based beverage featuring tapioca pearls, while matcha is finely ground green tea powder, most commonly consumed as an iced latte. The hype around these beverages is not new, but their increasing appeal in India has even compelled the 13-decade-old Wagh Bakri to reinvent itself.

“If you look at the younger audience, they are not as excited about traditional hot teas. So the need was to launch newer variants of tea, like bubble teas and iced teas," said Sanjay Singhal, the chief executive (CEO) of the Gujarat-based company.“It is more for the younger generation and to create excitement in our tea lounges."

The tea producer operates a network of Wagh Bakri Tea Lounges, which serve freshly brewed tea and snacks. Starting this year, it has added cold beverages such as iced and bubble teas to the menu.

Also Read | The rise of boba-flavoured sweet tre

“People don't go to a restaurant alone. They go as a group-friends or family and you have to appeal to everybody. Our teas may appeal to older people, but youngsters may not want to have them," he said.

The strategy, he said, is already changing who walks into Wagh Bakri's outlets.“Beyond revenue, what this has really helped with is that we are seeing a lot of Gen Z and young kids walking into our tea lounges. That's a segment that would never come to a tea lounge earlier."

Cold beverages are growing 60% faster than hot drinks, with Asian formats such as matcha and boba witnessing outsized traction, according to the latest Kearney–Swiggy How India Eats 2025 report. Search interest for matcha has jumped 11-fold over the past five years, while boba tea searches have grown fourfold, underscoring how these once-niche drinks are fast-moving into the mainstream, driven largely by Gen Z's willingness to experiment.

Singhal said cold beverages see demand beyond the traditional summer months.“When people go out, they don't necessarily want to have a hot beverage. A cold beverage works better as a food accompaniment, and you can sit and sip it for longer."

Also Read | From ghee water to matcha, why Gen Z prefers drinking its way to welln

Quick service restaurant chains that have long been grappling with muted consumer demand are now increasingly viewing cold beverages as a rare bright spot amid the slowdown. New-age café chains, meanwhile, say formats such as matcha, boba and iced coffees are reshaping consumption habits rather than riding a passing fad.

At cafe chain abCoffee, said founder and chief executive Abhijit Anand, cold beverages have become a key lever to attract younger consumers, with Gen Z accounting for about 54% of the chain's customer base.

While boba continues to perform well, he said it tends to be more seasonal in nature. Matcha, by contrast, is emerging as a more durable habit.“Matcha is a true extension of the coffee line. It's not just a cold coffee alternative but a winner in the mix."

Cold drinks account for nearly 60% of the beverage mix during summer and spring and make up around 40% even in winter, with Mumbai standing out as a market where cold beverages contribute over half of sales year-round, said Anand.

According to Rajat Tuli, partner and food & beverage lead at consulting firm Kearney, while boba and matcha were initially popularised by Gen Z as early adopters, they have now found acceptance across age groups.“Their presence across QSR, café and standalone menus suggests these formats are no longer niche and are likely to remain a permanent fixture over the next few years."

Also Read | In Pics: Japanese envoy serves freshly whisked Matcha to Rajasthan Deputy

Menu innovation has contributed too. According to Tuli, cold formats lend themselves to greater experimentation, resulting in a wider range of variants compared to hot drinks. Younger consumers continue to show a clear preference for colder beverages, driving demand across seasons, he said.

That shift is reflected in the rapid growth of homegrown bubble-tea -focused QSRs such as Boba Bhai, which has attracted investor interest and expanded aggressively beyond metros. The Bengaluru-based chain, launched in 2023, has raised institutional capital, including a ₹30 crore Series A round led by 8i Ventures and plans to grow its footprint to well over 100 outlets across India, including in tier-2 and tier-3 cities, as it seeks to make bubble tea a mainstream choice for youth across the country, according to startup data platform Tracxn.

MENAFN23122025007365015876ID1110519634