Back to the archive

The encyclopedia · Product & Design · Product decision · 1988

Bubble tea: the tapioca balls that a staff meeting made famous

A product development manager poured tapioca balls into her iced tea during a staff meeting. The drink became a $2.4 billion global industry.

Chun Shui Tang · 1988

What happened

In the 1980s, Liu Han-Chieh founded the Chun Shui Tang tea room in Taichung, Taiwan. He began serving Chinese tea cold after seeing Japanese iced coffee in Tokyo. The cold tea was popular, but the shop was still just a local tea house. Nothing about it suggested a global beverage revolution.

In 1988, product development manager Lin Hsiu Hui was at a staff meeting. She had a bowl of tapioca balls (fen yuan), a traditional Taiwanese dessert. On a whim, she poured them into her iced tea. The combination was unusual — chewy tapioca balls in a cold drink. She encouraged her colleagues to try it. They loved it.

The drink was added to the menu. It became Chun Shui Tang's top-selling product. The name 'bubble tea' came from the frothy bubbles that formed when the tea was shaken. The drink spread across Taiwan, then to Hong Kong, China, Japan, and Southeast Asia. By the 1990s, it had reached the United States through Taiwanese immigrants.

By 2022, the bubble tea market was valued at $2.4 billion, projected to reach $4.3 billion by 2027. In China, bubble tea consumption was estimated at five times that of coffee. A spontaneous office experiment — a staff member pouring dessert into her drink — had created a worldwide industry. The drink that started as a joke became a cultural phenomenon.

Why it happened

  • The product was created when a staff member poured tapioca balls into her tea during a meeting — not a planned product development process.
  • The drink was added to the menu as a novelty, not as a strategic product launch — it became the top seller by accident.
  • Bubble tea became a $2.4 billion global industry from a spontaneous office experiment — no one planned for it to become a worldwide phenomenon.
What it costA staff meeting and a bag of tapioca ballslucky mistake

The lesson

A product development manager poured tapioca balls into her tea at a staff meeting. That cup became a $2.4 billion industry. The drink was not a planned innovation — it was a spontaneous experiment.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →