Domestic market saturation and slow growth spur Chinese tea chains to seek new international markets. Photo credit: Mainbayar Badarch
Chinese new-style tea chains are rapidly accelerating their international footprint due to extreme domestic market saturation and slowing growth in China. Driven by fierce competition, they have expanded beyond Southeast Asia into North America, Europe, East Asia, and Australia by implementing multiple tactics tailored to local conditions.
Mixue, Shanghai Auntie, and Chagee all opened their first stores in the US in 2025. HeyTea, Naisnow, and Molly Tea have also expanded into the US market. Molly Tea will have 40 overseas stores across six countries, including the UK, Thailand, and Indonesia. More than 20 such brands operate overseas, primarily selling milk tea and blended drinks rather than traditional loose-leaf tea.
Mixue opened its first overseas store in Vietnam in 2018. Supported by its self-built supply chain and in-house production of core ingredients, the company has replicated its cost-control model abroad. Now, it has expanded into 14 countries, with more than 4,467 overseas stores backed by its self-built global supply chains. They focus on ultra-low pricing and massive volume.
Localization has become key to long-term growth. For example, Mixue has adjusted sweetness levels, tea bases, and ingredient combinations to suit local tastes. In Southeast Asia's tropical climate, the company has increased the proportion of iced beverages and incorporated tropical fruit flavors.
Chagee markets "modern oriental tea" and premium fresh milk tea, scaling heavily across Southeast Asia and expanding into major hubs like Seoul. The company's Thai subsidiary received $3.9 million in funding from heavyweight local investors, including Thai President Foods and Komsan Saelee. They aim to advance expansion across Thailand's highly competitive drinks market, using the joint venture model to reduce operating risks and leverage local logistics, retail, and real estate networks.
A similar strategy was adopted in Malaysia: Chagee partnered with hotel conglomerate Magma Chain to form a 60%/40% joint venture and now operates over 150 stores in the country. In Indonesia, they operate through a joint venture with a subsidiary of local retail group Erajaya, securing halal certification to better align with local consumer expectations.
Chinese tea beverage brands are also integrating social responsibility into their global strategies. In Singapore, Chagee opened a "silent store" staffed by deaf and hard-of-hearing employees and equipped with accessible facilities. The initiative emphasizes the brand's commitment to inclusive employment while contributing to local communities.
In February 2026, Chinese bubble tea giant ChaPanda (also known as Cha Bai Dao) made its official Canadian debut in Toronto under its global identifier, TeaByDo. ChaPanda is headquartered in Chengdu and operates over 8,700 stores globally.
A ChaPanda official noted that while replicating the mature product matrix and supply chain system from China, the company will also make localized adjustments based on each country's conditions and proactively establish overseas raw material supply and logistics networks to ensure the quality and stability of key raw materials.
Modern China Tea Shop, a Chinese milk tea chain based in Changsha, entered the North American market using a digital-first approach. Instead of opening physical storefronts, the brand launched nearly 40 retail products — including snacks, tea sets, and lifestyle merchandise through online platforms such as its own store and third-party sites.