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Vietnam's milk tea market is extremely large and ranks third in Southeast Asia

Milk tea is a familiar drink of people all over the world. Pearl milk tea originates from Taiwan and has been widely popular in Southeast Asia and North American cities since the 1990s.

Vietnam milk tea market overview

Milk tea was introduced into the Vietnamese market in 2002 but has not yet developed well. By 2012, when Taiwanese milk tea brands arrived with a chain model, milk tea became popular nationwide.

Milk tea is currently becoming the most popular drink in the Vietnamese market. Milk tea is the second most popular drink in Vietnam, it is a favorite refreshing drink of many young people, students and especially office workers aged 18 - 39. The annual revenue of the Vietnamese milk tea market is about 8,400 VND billion, accounting for about 10% of the milk tea industry revenue of the whole region and ranking 3rd in Southeast Asia.

The milk tea market is becoming hotter than ever with the participation of large and small brands, domestic and imported brands. There are more than 100 brands and approximately 1500 milk tea shops nationwide. Brands such as Dingtea, Koi, Royal Tea, Gong cha are the brands with the strongest coverage in the Vietnamese market.

ToCo ToCo

ToCoToCo is the most popular, trusted and loved Taiwanese milk tea brand in Vietnam. Launched at the end of 2013, ToCoToCo has gradually dominated the market with nationwide coverage. Especially effective with Tocotoco franchise form.

TocoToco milk tea has received a lot of attention from investors because although it is the number 1 milk tea brand in Vietnam, the franchise fee is only 0 dong. After nearly 10 years of operation, in the face of fierce competition, TocoToco franchising is still a small capital investment deal that cannot be ignored.

Up to now, ToCo ToCo has been present in 56 provinces and cities of Vietnam, owning nearly 500 stores, including nearly 400 franchise stores. The revenue of this milk tea shop chain in the period of 2019-2022 is increasing quite well. ToCo ToCo recorded a revenue of 430 VND billion in 2022, up 41% compared to 2021.

Koi Thé

Koi Thé originated in Taiwan with the original name of this brand being 50 Lan. In 2007, this brand was officially present in the Singapore market, where the name Koi Thé was officially born and became the famous milk tea brand name of 50 Lan in foreign markets.

Currently, KOI's coverage has spread throughout the Asian market such as Japan, China, Indonesia, Malaysia, Vietnam, Thailand, Indonesia, and Myanmar. Even Europe has the appearance of this brand

In recent years, Koi Thé’s business situation has been quite good. The 2022 revenue of this milk tea brand will reach 352 VND billion, an increase of more than 130 billion compared to the previous year. After a decline in profits in 2021, by 2022 Koi Thé's profits have increased again and are somewhat stronger than in previous years.

Gong Cha

Gong Cha is a milk tea chain established in 2006 in Kaohsiung, Taiwan. Currently, Gong Cha has been present in 19 countries with more than 1,500 stores, and many branches in countries including Vietnam, Taiwan, Hong Kong, China, Malaysia, Philippines, Korea, Japan, Singapore, Thailand, Macau, Cambodia, Brunei, Indonesia, Australia, New Zealand, Canada and the United States.

Gong Cha is present in 14 provinces and cities across the country, from South to North and neighboring provinces. The city with the most stores is Saigon, which is also the first location where Gong Cha entered the Vietnamese market. Gong Cha has a total of 45 stores in Vietnam, each of which is strictly controlled in terms of beverage quality as well as service quality to ensure the reputation of the brand.

During the epidemic period, the business situation of this milk tea brand in Vietnam was quite difficult. Revenue decreased quite a lot and besides, there were losses of more than 5 billion dong. However, entering 2022, the epidemic is under control, Gong Cha's revenue has recovered. Specifically, in 2022, this brand recorded revenue of 100 billion and made a profit of more than VND 350 VND million.

Ding Tea

Ding Tea is currently Taiwan's largest beverage brand in China. Although it has only been 4 years since Ding Tea developed in Vietnam, Ding Tea already owns 200 stores spread across provinces and cities in Vietnam.

In the period before 2020, Ding Tea's revenue from sales and service provision is quite high. However, after 2020, this revenue source is only a few tens of VND millions. Besides, in recent years, Ding Tea has had an income of several VND billion coming from other sources of income.

Ding tea's profits have grown unstable in recent years but are still profitable overall. In 2022, this brand will record a profit of more than 400 VND million, down more than 300 million compared to 2021.


At the end of 2012, many Taiwanese milk tea brands entered Vietnam. This has created a strong milk tea market. Bobapop was accordingly introduced to Vietnam. Bobapop's first store in Vietnam was opened in early 2013. The business model at this time is take-away - a new model and loved by many people.

In 2019, Bobapop changed its business form to become Bobapop Tea Bar. This is considered a strong turning point of Bobapop with a full-service shop model for customers to sit back and chat and enjoy drinks.

2022 is a very good business year for this milk tea brand when the revenue reaches more than 80 VND billion, double that of the previous year. Also in this year, Bobapop still suffered a loss of more than 2 VND billion, but this figure has decreased much compared to previous years.

Pozza Tea

The Pozaa Tea brand has been officially put into operation in the Vietnamese market by Pozaa Company limited since 2013. Pozaa has more than 200 stores nationwide, and still maintains the policy of promoting the speedy opening campaign with the desire to open and build a system of stores throughout Vietnam.

Pozza Tea's business situation in 2022 has improved compared to previous years. The revenue of this milk tea brand reached more than 5 VND billion, 3 times higher than in 2021. After 2 years of losses, in 2022 Pozza also made a profit, but this figure is not too large.

The Alley

As a famous milk tea brand in Taiwan, born in 2013, The Alley is present in 24 countries around the world and Vietnam is the 8th country to own this brand. Although joining Vietnam late when the milk tea trend was saturated and the highest price in the market, The Alley is still very popular with young people thanks to its unique features, not mixed with other milk tea brands available on the market.

The Alley returned to Vietnam, opening up the extremely hot trend of "Brown sugar bubble fresh milk". This also helps The Alley to develop well in a period when the milk tea market is saturated. Currently, The Alley milk tea chain has 40 franchise stores across the country.

Phe La

Phe La has been around for a few years, but due to the influence of the epidemic, Phe La's brand awareness has not been high. By the beginning of 2022, when the epidemic situation improves, this name will have a strong coverage in the milk tea village.

The characteristic of the Phe La brand is Da Lat Oolong tea. Although only using Oolong tea, this brand uses a lot of different processing methods to bring different flavors in drinks that make many young people extremely love this brand.

As a brand that was born quite late, Phe La encountered many difficulties in the milk tea market. The revenue of this brand in 2022 is recorded at 1.8 VND billion, a quite good change compared to 2021, which was only about 250 VND million. However, Phe La must suffer an extremely high loss in 2022. Revenue is only 1.8 VND billion but the loss that Phe La must suffer is up to 4.4 VND billion.

Tien Huong Tea

Tien Huong Tea is one of the famous tea brands in Ho Chi Minh City and neighboring provinces with pure and healthy product lines. As one of the milk tea brands appearing since 2011, Tien Huong milk tea has always maintained its position in the hearts of customers with more than 200 stores across the country.

In 2011, Tien Huong milk tea shop was first opened in Vietnam and received a lot of attention from customers because the ingredients were still provided by this brand, retaining the flavor of Gotcha tea leaves. Tea leaves are grown by the brand and picked down from Alishan Mountain in Taiwan and shipped to Vietnam. International standard equipment and machinery will also be provided at all Gotcha facilities across the country.

The business situation of Tra Tien Huong in 2022 is gradually recovering after the epidemic period. The revenue of this brand will reach 1.7 VND billion in 2022, an increase of about 33% compared to 2021. In 2022, Tra Tien Huong still suffered a loss of nearly 250 VND million, but has improved compared to the previous year.

It can be said that milk tea is a new trend in the beverage industry in Vietnam in recent years. The number of stores is increasing a lot, milk tea shops are growing at dizzying numbers. This is a market full of promise and has a very high profit rate. Milk tea will most likely be the trend in the next few years, businesses need to grasp this trend to create their own profits.

Source: Vietdata’s milk tea industry report


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