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Milk tea is quietly becoming the next big player in the ready-to-drink (RTD) market. While coffee lattes have dominated store shelves for years, offering a dependable sweet and creamy caffeine fix, consumers today are craving more. Retailers and distributors now have an opportunity to introduce a product that combines the indulgence of a latte with the bold flavors and global appeal that today’s consumers are seeking. Let’s dive into why milk tea is capturing the attention of coffee drinkers and why it’s the perfect addition to your beverage lineup.
RTD coffee lattes have been a staple in the American market for decades. They’ve been reliable sellers for morning pick-me-ups, afternoon refreshers, and indulgent treats. But as tastes evolve, even the most loyal coffee drinkers are exploring new options. Enter milk tea—a beverage that provides the same creamy, sweet, and caffeinated experience that latte lovers crave, but with a refreshing twist.
Milk tea brings the indulgence of a latte, but with the unique flavors of real brewed tea. Whether it’s the bold notes of black tea, the floral hints of jasmine, or the earthy depth of matcha, milk tea is proving that it can stand toe-to-toe with coffee. It satisfies the same occasion and flavor needs, and consumers—particularly Millennials and Gen Z—are eager for something new. With tapioca pearls as an option for an added layer of fun, the beverage elevates the drinking experience. For retailers, this means that the same customer who’s been buying frappes for years could soon be grabbing milk tea instead.
For consumers who want the energy of caffeine without the jitters, milk tea is a game-changer. It offers a balanced experience, making it an attractive option for those who want to feel energized but not frazzled. As health-conscious consumers increasingly seek beverages that offer functional benefits beyond taste, milk tea meets the mark. It provides the same boost as a latte but with the added appeal of being a gentler, healthier alternative.
For retail buyers, this makes milk tea a compelling addition to store shelves, where consumers are actively searching for better-for-you options without compromising on taste or energy.
The cultural shift toward global flavors is undeniable. In the U.S., Asian cuisine is surging in popularity. The U.S. Asian food market is expected to grow at a CAGR of 7.1% through 2031, largely due to the rise of Asian cuisine like sushi, ramen, and curry(Market Research Future). Gen Z, in particular, is driving this trend, spending a significant portion of their disposable income on new food experiences. This generation is food-adventurous and unafraid to explore flavors like gochujang, kimchi, and yes—milk tea(Myojo USA).
As RTD coffee sales plateau, with little room for innovation beyond seasonal flavor tweaks, milk tea offers a fresh alternative. It’s part of the larger global trend toward fusion cuisine, where familiar flavors meet exciting, international twists. Milk tea offers retailers an opportunity to tap into the growing demand for bold, authentic, and globally inspired products.
The global Asian food market is projected to reach $805 billion by 2031, driven by the increasing popularity of diverse and authentic Asian flavors in North America(Market Research Future). By incorporating milk tea into an RTD lineup, retailers and distributors can capitalize on a product that offers both the indulgence of a latte and the cultural intrigue that today’s consumers crave.
The RTD coffee market has grown crowded, with little differentiation between brands. Year after year, the same flavors are cycled through, creating a sense of stagnation. Milk tea, however, is a "blue ocean" of untapped potential. It offers novel flavors, textures like tapioca pearls, and a cultural experience that coffee simply cannot replicate. For retail buyers, adding milk tea to the beverage aisle isn’t just about offering another drink—it’s about offering something different, something exciting.
The demand for new, adventurous flavors is growing, and milk tea is perfectly positioned to meet that demand. Retailers who introduce milk tea can attract a wider range of consumers—from the loyal coffee drinker looking for a change to the adventurous Gen Z shopper seeking their next flavor experience.
Milk tea and coffee lattes may share a similar foundation—sweet, creamy, and caffeinated—but they diverge when it comes to innovation, excitement, and cultural relevance. While the coffee category has reached a point of oversaturation, milk tea is bursting with opportunities to attract a new generation of consumers who want more from their beverages.
For retail buyers and distributors, adding milk tea to your offerings isn’t just keeping up with trends—it’s positioning your store as a leader in offering the next big thing. Whether for the caffeine boost, the rich flavors, or the cultural appeal, milk tea is poised to become the new latte. Are you ready to offer it to your customers?
In 2019, I made a decision that would put me $60,000 in credit card debt. I was consumed by a vision, I was chasing a dream. A dream I wasn't even sure would work.
This is the story of how I went all in to build Joy Milk Tea, and why I’d do it again in a heartbeat.
Before we sold millions of cans, we almost went bankrupt trying to perfect just one. Here’s the wild story of how 2,200 pounds of tea and relentless testing would create the most delicious milk tea—or could have cost us everything.
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We love milk tea. We couldnt really imagine a world without it. It’s fitting since we found ourselves making milk tea for America. That love for milk tea, although unbreakable, really isnt what this is all about. For us, this is really about choice. It’s about small decisions in your everyday life that you have become numb to. Yeah, what you drink is a super small choice, but every little thing counts right? That’s where this all began, with a small choice. Another venti S******** iced americano or try something new? I chose to try something new… but quickly...
