Chinese tea chains expand overseas footprint

Chinese new-style tea brands are accelerating their push into overseas markets, leveraging product innovation, digital operations, and a growing global interest in health-boosting beverages.

The trend marks a new phase in the globalization of China's consumer brands, analysts said.

Tea chains — once focused on the domestic market — have begun to systematically scale up their presence abroad.

From Southeast Asia to North America and Europe, Chinese companies like Mixue, Heytea and Chagee are establishing a presence in major urban centers and retail hot spots.

"The overseas growth of Chinese tea brands shows that they are moving up the value chain — from low-cost producers to lifestyle and culture exporters," said Wang Peng, associate research fellow at the Beijing Academy of Social Sciences.

He pointed to the global shift in beverage preferences, especially among younger consumers, as a key driver. "Consumers are looking for lower-sugar, innovative and Instagrammable drinks that reflect cultural diversity."

Zhan Junhao, founder of brand consultancy Fujian Huace Brand Positioning Consulting, noted that success abroad has depended on thoughtful localization strategies.

"Chinese tea companies have adjusted flavors to suit local palates, while retaining signature products that communicate authenticity. This balance between adaptation and brand identity has been critical," he said.

According to National Business Daily, six Chinese tea brands had gone public by July, and together they operate over 5,000 outlets overseas.

Among the most active players is Mixue Group, which was listed on the Hong Kong stock exchange in March. Its prospectus revealed that the company had opened 4,895 outlets overseas by the end of 2024, accounting for more than 10 percent of its global footprint.

Chagee, a premium tea chain based in Yunnan province, made its debut on the Nasdaq in April. In just seven years, the brand has opened nearly 170 outlets in Malaysia, Singapore, Thailand and other countries.

Heytea, one of China's best-known upmarket tea brands, launched its international journey from Singapore in 2018. It has since expanded into London, Melbourne, Kuala Lumpur, Seoul, and several North American cities. Over the past year, Heytea's overseas store count jumped more than sixfold, from fewer than 20 to over 100. In the United States alone, the number of stores rose from two to over 30.

The brand's Cupertino outlet in California, located near the headquarters of Apple Inc, drew long lines on opening day. "Our Times Square store in New York sold over 3,500 cups on its first day, and the Flushing store reached 3,300 cups daily by Day Three," said Cheng Hao, general manager of the Public Communication Center of Heytea. "Even in the off-season, our outlet in San Jose maintains sales levels close to opening day."

A viral presence on social media has helped fuel the craze.

Videos of two-hour wait lines and customer reviews comparing Chinese tea to coffee in addictiveness have boosted visibility among US consumers.

As the Chinese brands continue their global expansion, analysts said their long-term success will depend on how well they manage supply chains, maintain brand quality and navigate regional competition — while retaining the cultural appeal that first set them apart.

zhengyiran@chinadaily.com.cn