Bubble Economy

Taiwan’s favorite beverage is instantly recognizable, yet endlessly evolving. In every corner of Taiwan, bubble tea shops are an unmistakable part of the landscape. These lively establishments buzz with activity as baristas prepare drinks brewed from locally sourced leaves for throngs of customers. Also known as boba tea or pearl milk tea, the iconic beverage has earned its place as the unofficial national drink. Former President Tsai Ing-wen, right, and Paraguay President-elect Santiago Peña join a bubble tea-making workshop at Chun Shui Tang in 2023. (Courtesy of Chun Shui Tang) Bubble tea was invented in Taiwan in the 1980s, although its exact origins are contested. Two traditional tea shops, Chun Shui Tang in the central city of Taichung and Hanlin Tea Room in the southern city of Tainan, both lay claim to first adding large tapioca balls, the eponymous bubbles, to iced, hand-shaken milk tea. With the advent of machines that automatically seal and shake cups, the specialized to-go drink shops seen all over Taiwan today took off. The domestic bubble tea sector is a booming industry, with annual revenue surpassing NT$130 billion (US$4 billion). By May 2024 over 16,000 shops were spread across the island—outnumbering even convenience stores, another hallmark of local culture—giving the country the highest concentration of such outlets in the world. Among diverse menu options, the classic bubble milk tea remains a favorite. Universal Appeal The beloved beverage has since transcended borders to capture international taste buds. Local businesses Chatime, headquartered in the northern county of Hsinchu; Gong Cha, based in the southern city of Kaohsiung; and many others have successfully expanded to markets in Australia, Japan, the United States and Europe, showcasing the tea at trade shows and exhibitions to increase exposure. The drink’s appealing aesthetic and huge variety of flavors consistently draw crowds, cementing its status as a symbol of the country’s culture abroad. Digital billboards at Gare de l’Est station in Paris are part of the Tourism Administration’s “Waves of Wonder” campaign. (Courtesy of Taiwan Tourism Administration) Thus, the Tourism Administration’s “Waves of Wonder” campaign, launched in May 2024, prominently highlights the beverage as emblematic of the country’s charm. “Bubble tea is more than a drink; it’s a reflection of Taiwan’s creativity and warmth,” explained Huang Yi-cheng (黃易成), director of the agency’s International Affairs Division, acknowledging the value of service that not only proactively inquires about ice and sugar preferences, but mixes a wide array of ingredients, often into customers’ own reusable cups. A hallmark of takeout beverages is that consumers can specify the degree of sweetness and volume of ice for each individual drink, thus providing a satisfying degree of personal interaction and choice far from the standard fast food experience. Visitors to the Taiwan pavilion sample bubble tea at the 2024 International Tourism Expo in Vietnam’s Ho Chi Minh City. (Courtesy of Taiwan Tourism Administration) Although the drinks are indelibly linked to dark tapioca pearls, there are also abundant options without them. The black or green tea base is sourced from tea-growing regions all over the country, including high-mountain plantations in the central and southern counties of Nantou and Chiayi, and underscores the drink’s quality. “Bubble tea is simple, delicious and affordable—qualities that make it a star at international events,” Huang explained. “It’s a gateway to understanding Taiwan. Flavors are gateways to local culture, and bubble tea, as a cornerstone of daily life in Taiwan, offers a glimpse into the island’s vibrant lifestyle and spirit.” As competition in the beverage industry intensifies, businesses have embraced branding with visually striking designs and packaging that resonate particularly with younger consumers. For instance, Ocean Bomb has positioned itself as a formidable competitor in the canned beverage market by replacing the conventional paper cup with sleek aluminum containers decorated with a stylized night market backdrop and available instantly from convenience store shelves. This packaging option extends market reach far beyond Taiwan’s shores to widen global recognition. Soft Power Bubble tea-inspired merchandise. (Photo by Chin Hong-hao) For global consumers, bubble tea represents more than just a refreshing beverage. The drink’s appearances in media such as Taiwan time travel drama “Someday or One Day,” not to mention its broad presence in memes and on social media platforms, have confirmed it as a distinctly Taiwan product. This instantly recognizable symbol wields considerable soft power, sharing the country’s stories and values with the world while fostering connection and goodwill. Huang attributes bubble tea’s spread to its tireless reinvention during Taiwan companies’ overseas outreach. One standout brand leading the charge is Koi Thé, an offshoot of the domestic chain 50Lan, headquartered in the southern city of Tainan. Despite international growth opening up new horizons, founder Khloe Ma (馬雅芬) emphasizes the importance of preserving the drink’s authenticity and quality. “We can’t predict exactly how a certain drink will win fans in each country, but we know it starts with imagination and a mix of the familiar and exotic all in the best cup we can imagine,” Ma said. By tailoring black, green and oolong tea to local preferences, Koi Thé showcases endless permutations: a glance at their online menu reveals adjectives not generally associated with beverages, such as chewy, crunchy and cheesy. The brand offers evocative flavors for many localities, including truffle cocoa in France, palm sugar in Malaysia and Thai milk in Thailand. Chun Shui Tang partners with the Golden Horse Film Festival and Golden Horse Awards to promote their brand. (Courtesy of Chun Shui Tang) Another pioneering brand expanding its footprint is Chun Shui Tang. By partnering with the most prestigious award events for Chinese-language cinema, Taiwan’s Golden Horse Film Festival and Golden Horse Awards, the company links flavor to film, in a reflection of its philosophy of tradition and innovation. Managing Director Angela Liu (劉彥伶) highlights the company’s role in developing the drink. “Bubble tea has risen from a humble refreshment to a cultural symbol that Taiwan delights in sharing with the world,” Liu said. Prized Memento Bubble tea diplomacy extends far beyond media appearances and trade shows. At the Paris Olympics Games Paris 2024, held from Jul. 26 to Aug. 11, Team Taiwan’s pins became an unexpected must-have item for athletes from around the world who recognized the iconic refreshing drink when they saw it. Pin trading, a cherished Olympic tradition symbolizing friendship and exchange of excellence, took on a uniquely Taiwan flavor as the whimsical cup, straw and pearl design captivated competitors. Eager to obtain the coveted souvenir, some athletes lined up early in the morning outside the Chinese Taipei Olympic Committee’s office at the Olympic Village. “I heard stories of athletes trading 10 pins from other countries just to get one from Taiwan,” said Cheng Jyun-ming (鄭鈞銘), one of the committee supervisors. “This craze came out of the blue, sparking lively conversation and sealing Taiwan’s individuality on the global stage. It was a moment of pride for all of us.” The choice of bubble tea for the pins was no coincidence. Its versatility and broad appeal mirror the country’s inclusive and welcoming spirit. As committee supervisor Liu Hsin (劉馨) said, “Bubble tea perfectly represents Taiwan, making it an ideal way to bridge continents and oceans to share our story with the world.” Olympic committee supervisors Liu Hsin, upper left, and Cheng Jyun-ming explain the creative inspiration behind the team’s bubble tea pins, which proved wildly popular at the 2024 Paris Olympics. (Photo by Pang Chia-shan) Write to at khliou01@mofa.gov.tw