Tiger Sugar: How the Taiwanese Bubble Tea Pioneer Navigates Challenges in China's Crowded Market
The Rise of a Visual Beverage Icon
Tiger Sugar (老虎堂), a Taiwanese beverage phenomenon, revolutionized the global drink scene in 2017 by introducing the world’s first “edible art” – the iconic black sugar tiger-striped cup. As the originator of this viral aesthetic, the brand quickly captivated Gen Z and young professionals with its Instagram-worthy drinks, positioning itself as a leader in the premium milk tea category.
Product Innovation: Beyond the Hype
Unlike generic bubble tea chains, Tiger Sugar leans into its Taiwanese roots with a “black-centric” menu divided into four distinct categories:
- Black Sugar Boba Series (signature: Brown Sugar Boba with Creamy Milk)
- Black Sugar Pearl Series
- Tea Latte Collection
- Single-Origin Coffee Mixes
The brand’s strategic crossover into coffee deserves special attention. By blending tea elements (cream foam, boba) with coffee lattes and using fresh sugarcane syrup simmered for 3 hours, Tiger Sugar created a niche that avoids direct competition with Starbucks while appealing to tea enthusiasts seeking complex flavors.
The Copycat Crisis: A US$12.7M Legal Battle
Tiger Sugar’s meteoric rise in China came at a cost. Over 600 counterfeit stores flooded the market within 18 months of its Shanghai debut (2019), according to internal brand data. These山寨 (shānzhài) copycats often used inferior ingredients – some containing artificial sweeteners instead of pure sugarcane – damaging the brand’s reputation.
International Footprint
To mitigate domestic headwinds, Tiger Sugar aggressively pursued a franchise model abroad, maintaining brand consistency while leveraging local partners. Its current presence spans:
- Asia: Hong Kong, South Korea, Macau, Malaysia, the Philippines, Singapore, Thailand, Brunei
- North America: Canada, United States (in 21 states, including California, Florida, New York, Texas)
- Europe: United Kingdom