China's booming bubble tea industry faces a test: Is it here to stay or just a fad?

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Bubble tea may have started as a playful drink, but it has grown into an industry worth billions.

The global bubble tea market size will grow from $2.83 billion in 2025 to $4.78 billion by 2032, according to a report from Fortune Business Insights.

This year, three Chinese bubble tea chains — Mixue Group, Guming Holdings and Auntea Jenny — listed in Hong Kong, and raised more than $700 million as investors bet on China’s fast-growing consumer market.

“This is the right place at the right time,” said William Ma, chief investment officer at Grow Investment Group, said in an interview with “CNBC Explains.”