Planning to start a milk tea business?
Important things to know before starting yours!
Are you planning to start a milk tea business? That is wonderful. However, before you start out you need to know a lot of things first to avoid making some big mistakes. In this book we will be covering a lot of information about how to get started.
However, before you even start thinking about starting a Milk Tea Business you should know something else first. Understand how wonderful this market really is.
Milk Tea Market and Trend
Milk Tea Market in the Philippines
The Milk Tea industry is huge and it is growing like CRAZY. It is not only the in stores visits that is doing great but also the take out market.
According to GrabFood the demand for Milk Tea is growing quickly. The amount of orders grew by 3,000 percent. That means an increase of 30 times in 2018 only. In 2019 the amount of orders for GrabFood grew another 3,500 percent. Yes that is another increase of 35 times for Milk Tea orders. That amount is not stopping anytime soon!
The 2nd largest market in South East Asia
Did you know that the Philippines is the 2nd largest market in whole South East Asia. Yes that is huge market, and the only one that is larger is Thailand. In the Philippines the average person drinks 5 Milk Tea cups a month. Thailand is the only one that surpasses that with 6 cups a month. Lets look at South East Asia average Milk Tea numbers. See the graph on the next page.
Average Milk Tea Consumption per month per person
The Philippine Milk Tea Market in ₱eso!
In the Philippines people between the age of 15 to 40 drinks approximately 5 Milk Tea drinks a month. That is a lot but what does that mean in hard earned ₱eso? Well lets crunch the numbers! You will love this number!
Average Price for Milk Tea
In the Philippines the price of a Milk Tea ranges somewhere between ₱ 55 all up to ₱ 150. However, the average price of a Milk Tea is close to ₱ 85 each. In our complete guide we will even show you how to calculate your cost for making a Milk Tea.
Average Spending Per Person for Milk Tea
Once you know that we can calculate how much a customer is worth if they love your Milk Tea.
Lets calculate multiple 5 by ₱ 85 this equals ₱ 425 a person between the age of 15 to 40 years spends on Milk Tea. That is a lot. But we are not ready! Now look how much this customer is worth a year! Lets multiple that ₱ 425 by 12 months to calculate their year value. That magic number is ₱ 5,100. This would mean every year a person spend on average ₱ 5,100 on Milk Tea.
Average Spending Per Person for Milk Tea
Philippine Market in ₱eso
Total Philippine Market in ₱eso!
According to the PSA the population in 2020 is a total of 109,947,900. If you would calculate the potential market assuming the age bracket is from age 15 up to 40 you will have a total of 45,261,800 potential customers that might be buying Milk Tea.
That would be almost 41.2% (=45,261,800 / 109,947,900) of the total population that fit the target market.
That would mean assuming that every person would be buying 5 Milk Tea a month this is the potential marketing in ₱eso.
45,261,800 x ₱ 85 a week = ₱ 3,847,253,000
45,261,800 x ₱ 425 a month = ₱ 19,236,265,000
45,261,800 x ₱ 5100 a year = ₱ 230,835,180,000
Average Spending Estimates Entire Philippines
As you can see these are estimates and the numbers are staggering high. It is very certain that these estimates are not yet reached. That means that the market has still full potential. As big brand like ChaTime, Infinitea and the likes are still opening many consistently. Lets look at the total number of stores at the moment.
Top Flavours of Milk Tea drinks in the Philippines
In the Philippines the top flavour drinks are cheese, milk tea with pearl, winter melon, pandan, and chocolate. As sinkers the tapioca pearls are most common as add on for their Milk Tea followed by cheese and pudding. One of the preferred times to order Milk Tea is during the lunch time on all days of the week, confirming that it’s the perfect complement to a midday meal.
Many Milk Tea Brands
With over 1,500 brands of Milk Tea Businesses and with over 4,000 outlets the most common one currently in the Philippines are Chatime, Coco Fresh Tea & Juice, Macao Imperial Tea, Ochaya, Koi Tea, Cafe Amazon, The Alley, iTea, Gong Cha, Tiger Sugar and Serenitea.
However, there every single month opening more than hundreds Milk Tea Businesses who does not have strong branding but does very well. Even big brands are still expanding to other regions. This indicates that there is so much demand for Milk Tea that any store that opens without a strong brand can easily survive. As the trend of Milk Tea is still strong and growing.
The numbers are growing and Philippines is one of the largest and strong growing markets to start. If you are considering about this, now it truly a time to start.