China's bubble tea market is transforming as the country experiences an economic downturn. Young people are becoming more frugal as many struggle to find jobs. They're choosing cheaper bubble teas as more affordable drinks cause new competition in the market.
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00:00Now that I'm back in China, let's try it out.
00:05Influencer Stacey Chen is reviewing bubble tea drinks
00:08for her nearly 200,000 followers on Chinese social media.
00:19The Taiwanese milky-sweet drinks
00:21paired with chewy tapioca balls
00:22have become hugely popular in China,
00:25particularly among tech-savvy young consumers.
00:28Last year, the market was worth over $21 billion US,
00:33with around half a million stores
00:35selling the trendy beverage across the country.
00:48Many of China's biggest bubble tea companies
00:50gained popularity by offering premium products
00:53as pricey status symbols,
00:55attractive when the country's economy was booming
00:57and living standards were rising.
01:00Cups of bubble tea sold for around 30 yuan,
01:03or just under five US dollars.
01:05But the industry is changing.
01:07There's new competition from companies
01:09offering the popular drink for very cheap.
01:23Some brands are now selling cups of bubble tea
01:26for under one US dollar, or less than eight yuan.
01:31The biggest chain in China by store count
01:34gained a following primarily
01:35by offering such affordable drinks.
01:38It now has 32,000 stores across the country.
01:43The bubble tea industry is growing rapidly.
01:46It's becoming a global phenomenon.
01:48These lower prices, a welcome development
01:51for young Chinese consumers,
01:53whose spending power may no longer be what it was.
02:19A crucial driver of the country's economy,
02:22China's young people are becoming more frugal,
02:25seeking discounts on everything from food to travel,
02:29according to an online survey in Consumer Trends Analysts.
02:32Many of them are struggling to find jobs
02:35as the country's economy experiences a downturn.
02:38Over 15% between the ages of 16 to 24
02:42were unemployed earlier this year,
02:44much higher than the national average.
02:47And for those with jobs,
02:49making ends meet is no easy task.
03:04And this growing frugality among China's young consumers
03:07is expected to affect the country's economy,
03:10already coming into focus when they buy their bubble tea,
03:13a trend that's gone from luxury to practicality.
03:17Dolphin Chen and Cadence Cuaranta for Taiwan Plus.