Chongqing- China's homegrown tea beverage brands are riding a wave of global expansion, seeking new growth opportunities as competition at home intensifies. From Southeast Asia to North America, companies like Mixue Ice Cream & Tea and CHAGEE are pushing boundaries- not just in store count, but in cultural influence and supply chain strength.

The store of Mixue Ice Cream & Tea in Shin Kong Palace, Chongqing. (Photo/Zheng Ran)

Mixue Ice Cream & Tea, one of China's largest beverage chains, has become a symbol of successful globalization. Since entering Vietnam in 2018, Mixue has expanded rapidly across Southeast Asia, with 4,895 overseas stores to date. The brand's mascot, Snow King, has been localized to different markets, donning a traditional headpiece in Japan and rapping in sunglasses on Korean social media. In Indonesia, he even dances outside stores to attract foot traffic.

According to data from the World Bank, in Vietnam, where over 40% of the population is aged 20-35 and annual consumption is growing at 8.5%, Mixue franchisees market through platforms like Facebook and Zalo, adapting their outreach to local habits.

Naixue, known for its premium positioning, is also accelerating its global strategy. Its flagship store in Bangkok's Central World grossed nearly 1 million baht in just three days after opening. In May, CHAGEE launched its U.S. flagship in Los Angeles, blending Song Dynasty aesthetics with minimalist modern design, marking a bolder push into the Western market.

CHAGEE opened its first U.S. flagship store in Westfield Century City with a ribbon-cutting ceremony on Friday, May 9. (Photo/CHAGEE)

"True internationalization means winning over local customers," said Wang Huan, head of ChaPanda's Korean operations, noting that cultural adaptability is now core to expansion strategies.

Chinese tea brands aren't just selling drinks- they're exporting full-scale business systems. CHAGEE, which already operates in Vietnam, Malaysia, Thailand, and Indonesia, has established a complete overseas supply chain, including food safety protocols, international certifications, logistics, and warehousing systems.

"The overseas supply chain must be rebuilt due to cost and quality gaps," said Zhu Danpeng, a food analyst. "Only companies with strong financial and technical capabilities can build these end-to-end systems to ensure long-term success."

CHAGEE's advanced, fully automated equipment. (Photo/Zheng Ran)

Behind this global push lies a tougher domestic market. According to iiMedia Research, China's new-style tea drink market reached 350 billion yuan (approximately $48.6 billion) in 2024, representing a 6.4% year-over-year increase. However, expansion within China is slowing.

Brands are shifting focus from rapid growth to single-store profitability. Competition has driven a shift toward third- and fourth-tier cities, with brands like Auntea Jenny and Good Me easing franchise restrictions to reach these markets, according to a report released by Jones Lang LaSalle (JLL) on June 3.

The pressure to stand out has also led to "involution"- a term used in China to describe hyper-competition, spanning everything from business models to health-conscious innovation.

CHAGEE has introduced a "calorie calculator," while Heytea now discloses full product formulas. A new nutrition rating system- first piloted in Shanghai and now adopted by CHAGEE and Naixue- uses A-to-D grades to help consumers make informed choices.

With price wars no longer a sustainable edge, Chinese tea brands are investing in cultural identity and emotional connection.

Naixue partnered with The Forbidden City to create a co-branded drink series, which sold out on launch day. Cross-border IP collaborations now make up 58% of brand partnerships, and Molly Tea's Hello Kitty collection for Children's Day targeted Gen Z, who drive 82.6% of tea drink sales.

On Children's Day, 2025, Molly Tea teamed up with the iconic global brand Hello Kitty to launch a line of co-branded merchandise. (Photo/Zheng Ran)

According to a report by CIC, the global freshly made beverage market is projected to surpass $1.1 trillion by 2028, with emerging markets such as China and Southeast Asia driving growth.

"The tea industry is entering a phase of fine-tuning," said Zhu Jianhui, Head of Retail Research at JLL China. "Chinese brands are reshaping the global beverage landscape through cultural confidence, supply chain innovation, and international reach."