Bubble Tea Craze: How Yun’an Wang Became a Billionaire

The bubble tea phenomenon in China has transformed numerous entrepreneurs into billionaires. Among them is Yun’an Wang, who is the founder and chairman of Guming Holdings Ltd. The recent initial public offering (IPO) of the Chinese milk tea company in Hong Kong allowed this 38-year-old millennial to surpass the billion-dollar milestone, solidifying his position in China’s vibrant beverage sector.

A $233 million IPO in Hong Kong, held on Wednesday, propelled Wang’s net worth to an impressive $1.1 billion, as reported by the Bloomberg Billionaires Index, despite Guming’s shares closing at 6.4% below the initial listing price of HK$9.30.

Who Is Yun’an Wang?

Prior to achieving success in business, Yun’an Wang worked as an engineer. He graduated from Zhejiang Sci-Tech University in Hangzhou, earning a degree in engineering. Following his academic journey, Wang ventured into entrepreneurship, launching his first bubble tea shop in 2010.

Wang’s Entrepreneurial Journey

Wang’s path as an entrepreneur began in Daxi, a small town close to Shanghai with a population under 200,000. The initial phase of his venture was far from luxurious, yet his determination paid off. Over the subsequent ten years, Guming Holdings experienced rapid growth throughout China, establishing nearly 10,000 outlets across various provinces.

Guming markets its tea under the brand name “Good Me,” which has gained immense popularity among bubble tea enthusiasts. As of 2023, this brand captured a 9.1% market share among the top five bubble tea brands in China, as per Bloomberg’s reports. The IPO prospectus for Guming revealed that Good Me is now the second-largest manufacturer of fresh bubble tea in China, based on total sales and store count, following only one rival.

A Soaring Market—and a Growing Club of Billionaires

Wang’s achievements in the bubble tea industry are not unique. The appetite for these drinks in China, which typically comprise a combination of tea, fruit, tapioca pearls, or milk, has seen significant growth in recent years, making multiple entrepreneurs billionaires. By 2018, the bubble tea market’s value in China reached $9.6 billion, with expectations to soar to $71 billion within just three years. Major contenders like Chabaidao and Mixue Group have been in fierce competition, each expanding their store networks nationwide.

However, this boom does not come without challenges. Investors have expressed concerns regarding potential price wars and aggressive marketing practices within this intensively competitive market landscape. A notable instance is Chabaidao’s IPO last April, whose share price nearly plummeted, indicating that the bubble tea bubble might burst just as quickly as it formed.

The Boba Craze

While bubble tea originated from Taiwan as a delightful treat, the beverage has undergone significant transformation on the mainland of China. Companies are racing to provide healthier versions, substituting sugary powders with real fruit, fresh juices, and low-calorie milk options. This range of offerings appeals to a diverse clientele, accommodating those who prefer indulgent, creamy drinks as well as health-conscious consumers seeking lightly sweetened fruit tea blends.