Vietnam Bubble Tea Market Size, Share, Trends and Forecast by Product Type, Flavor, Distribution Channel, and Region, 2026-2034

Vietnam Bubble Tea Market Overview:

The Vietnam bubble tea market size reached USD 11.88 Million in 2025. The market is projected to reach USD 19.85 Million by 2034, exhibiting a growth rate (CAGR) of 5.87% during 2026-2034. The market is driven by aggressive franchise expansion and store network growth across urban and suburban areas, increasing health consciousness leading to demand for low-sugar and functional beverage options, and rapid digital transformation through e-commerce platforms and delivery app integration. Robust growth trajectory reflects strong consumer preference among young demographics, evolving beverage consumption patterns, and strategic market positioning by both domestic and international players. These dynamics are collectively expanding the Vietnam bubble tea market share across diverse consumer segments.

Vietnam Bubble Tea Market Trends:

Aggressive Franchise Expansion Driving Nationwide Store Network Growth

The Vietnamese bubble tea industry is experiencing unprecedented expansion through aggressive franchising strategies that enable rapid store proliferation across both major urban centers and emerging suburban markets. Domestic and international brands are leveraging franchise models to establish comprehensive nationwide networks while maintaining standardized quality and operational efficiency. The franchise approach allows brands to penetrate diverse geographic markets with minimal capital investment, sharing operational risks with local partners who possess intimate knowledge of regional consumer preferences and market dynamics. This business model has proven particularly effective in Vietnam where entrepreneurial spirit is strong and demand for established beverage concepts continues to accelerate. Vietnamese brands are demonstrating remarkable capability to scale operations through franchise partnerships, with successful domestic chains achieving franchise renewal rates exceeding 95 percent due to proven profitability models and comprehensive operational support systems. The franchise expansion trend is fundamentally reshaping the competitive landscape by enabling brands to establish dominant market positions through extensive physical presence rather than relying solely on brand recognition or marketing expenditure. ToCoToCo achieved remarkable expansion with over 700 franchise stores across 56 of Vietnam's 63 cities and provinces by 2024, positioning itself as one of the fastest-growing milk tea brands with the largest store network in the country, while maintaining a 95 percent franchise contract renewal rate attributable to stable business performance and consistent growth exceeding business targets.

Government Health Policy and Consumer Demand Accelerating Low-Sugar Product Innovation

Vietnamese consumers are demonstrating increasing sophistication in beverage selection, prioritizing healthier alternatives that align with wellness objectives without compromising taste or experience. Consumer awareness about sugar consumption and nutritional value has increased due to the increasing prevalence of lifestyle-related health issues such obesity, diabetes, and cardiovascular disease. This awareness is manifesting in growing demand for bubble tea products featuring reduced sugar content, natural sweeteners, dairy-free milk alternatives including oat milk and almond milk, and functional ingredients offering health benefits beyond basic refreshment. Bubble tea brands are responding proactively by reformulating signature products, introducing customizable sugar level options, and developing entirely new product lines centered on health-conscious ingredients and preparation methods. The market is witnessing emergence of specialized offerings featuring green tea bases valued for antioxidant properties, black tea variants with metabolic benefits, and fruit-based concoctions emphasizing natural vitamin content. Government intervention through regulatory measures is accelerating this transformation and compelling industry-wide adaptation. In June 2025, Vietnam's National Assembly passed the amended Law on Special Consumption Tax, introducing the country's first excise tax specifically targeting sugar-sweetened beverages exceeding 5 grams of sugar per 100 milliliters, with implementation scheduled at 10 percent tax rate effective from 2027 following a graduated introduction beginning at zero percent in 2026 and eight percent in 2027. This landmark legislation reflects governmental recognition of public health imperatives and alignment with World Health Organization recommendations for reducing sugar consumption through fiscal policy mechanisms. The sugar tax is expected to generate approximately USD 94.3 Million in additional tax revenue while driving a projected 20 percent decline in sugary beverage consumption as consumers migrate toward lower-sugar alternatives and brands reformulate products to remain below taxation thresholds. The combined effect of bottom-up consumer demand and top-down regulatory pressure is fundamentally transforming product development priorities across the industry and expanding the Vietnam bubble tea market growth trajectory toward health-oriented innovation and premium positioning.

Digital Transformation and E-commerce Integration Revolutionizing Distribution Channels

The Vietnamese bubble tea market is undergoing fundamental transformation through comprehensive digital integration across the entire value chain from ordering and payment systems to delivery logistics and customer relationship management. Adoption of technology is helping brands reach a wider audience outside physical storefronts, reach consumer segments who were previously unreachable, and improve operational efficiency through data-driven decision making. Mobile applications and web platforms are becoming essential customer touchpoints, offering personalized recommendations based on purchase history, enabling customization of beverage specifications including sweetness levels and topping selections, and facilitating seamless payment through integrated digital wallets and banking applications. The proliferation of food delivery platforms including GrabFood, ShopeeFood, and Baemin has dramatically expanded bubble tea accessibility, particularly for time-constrained urban professionals and younger demographics who prioritize convenience and immediate gratification. These aggregator platforms provide brands with instant access to massive user bases while handling complex logistics and payment processing infrastructure, though margins are compressed through platform commission structures. Strategic partnerships between bubble tea chains and delivery platforms are yielding mutually beneficial arrangements including featured positioning, exclusive promotional campaigns, and priority delivery allocation that drive order frequency and customer acquisition. E-commerce channels are demonstrating particularly robust growth trajectories, with digital sales of ready-to-drink tea and bubble tea products projected to expand at approximately nine percent annually from 2024 through 2029 as Vietnamese consumers increasingly embrace online shopping for convenience, price comparison capabilities, and access to wider product selections unavailable through traditional retail channels. The Vietnamese ready-to-drink tea market, encompassing bubble tea products, achieved valuation of USD 350 Million in 2025 and is projected to maintain nine percent compound annual growth rate between 2024 and 2029, with digital sales channels expanding rapidly to serve health-conscious and time-constrained consumers concentrated in major areas including Ho Chi Minh City and Hanoi where internet penetration, smartphone adoption, and digital payment infrastructure reach their highest development levels.

Vietnam Bubble Tea Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on product type, flavor, and distribution channel.

Product Type Insights:

• Black Tea
• Green Tea
• Oolong Tea
• Others

The report has provided a detailed breakup and analysis of the market based on the product type. This includes black tea, green tea, oolong tea, and others.

Flavor Insights:

• Fruit
• Taro
• Strawberry
• Classic Coffee

A detailed breakup and analysis of the market based on the flavor have also been provided in the report. This includes fruit, taro, strawberry, and classic coffee.

Distribution Channel Insights:

• Online
• Offline

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes online and offline.

Regional Insights:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Vietnam Bubble Tea Market News:

• March 2025: With the successful completion of its IPO on the Hong Kong Stock Exchange, the massive Chinese bubble tea company Mixue Group raised over USD 444 million by issuing 17 million shares at a price of HK USD 202.5 apiece. The company operates over 45,000 stores globally, including approximately 1,304 outlets in Vietnam as of September 2024, positioning it as one of the largest bubble tea chains operating in Southeast Asia. The IPO proceeds are designated for accelerating global expansion initiatives, with strategic focus on enhancing presence in rapidly growing Southeast Asian markets including Vietnam, while simultaneously pursuing entry into North American markets where bubble tea consumption continues to demonstrate strong growth momentum.

Vietnam Bubble Tea Market Report Coverage:

Key Questions Answered in This Report:

• How has the Vietnam bubble tea market performed so far and how will it perform in the coming years?
• What is the breakup of the Vietnam bubble tea market on the basis of product type?
• What is the breakup of the Vietnam bubble tea market on the basis of flavor?
• What is the breakup of the Vietnam bubble tea market on the basis of distribution channel?
• What is the breakup of the Vietnam bubble tea market on the basis of region?
• What are the various stages in the value chain of the Vietnam bubble tea market?
• What are the key driving factors and challenges in the Vietnam bubble tea market?
• What is the structure of the Vietnam bubble tea market and who are the key players?
• What is the degree of competition in the Vietnam bubble tea market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam bubble tea market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam bubble tea market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam bubble tea industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.