China’s thriving bubble tea industry continues to mint billionaires, with Yun’an Wang, the founder of Guming Holdings Ltd., being the latest. The company’s IPO in Hong Kong raised $233 million, boosting Wang’s net worth to $1.1 billion, according to the Bloomberg Billionaires Index. Despite Guming’s shares closing 6.4% below their listing price at HK$9.30, Wang has cemented his status in the beverage sector.
From Engineer to Business Leader
Before stepping into the entrepreneurial world, Wang studied engineering at Zhejiang Sci-Tech University in Hangzhou. In 2010, he launched his first bubble tea shop, setting the foundation for Guming’s rise.
Building a Bubble Tea Empire
Wang started Guming in Daxi, a small town near Shanghai. Over the past decade, his brand has grown to nearly 10,000 stores across China. Guming operates under the “Good Me” brand, which holds a 9.1% market share among the country’s top bubble tea brands. According to its IPO filings, Good Me is now China’s second-largest fresh bubble tea brand by sales and store count.
A Billionaire Club Fueled by Tea
Wang is not alone in his success. China’s demand for bubble tea—made with tea, milk, fruit, and tapioca pearls—has driven massive industry growth. The market, valued at $9.6 billion in 2018, was projected to reach $71 billion within three years. Established brands like Chabaidao and Mixue Group are aggressively expanding, competing for dominance in this booming sector.
Challenges in the Market
Despite the industry’s rapid rise, concerns about price wars and aggressive promotions loom. Chabaidao’s IPO in 2024, which saw its stock price drop nearly 50%, serves as a warning that market competition can be fierce.
The Evolving Bubble Tea Trend
Once a sugary treat from Taiwan, bubble tea has adapted to Chinese consumer preferences. Companies now focus on healthier options, incorporating fresh fruit, real juice, and low-calorie milk to attract a wider audience. This shift ensures continued growth while catering to health-conscious consumers.
