Anyone who has visited a large city globally has most likely come across a Chinese tea chain selling milk, boba, and traditional tea varieties. While drinking tea and the tea tradition is deeply ingrained in China's domestic culture and market, many chains have seen opportunities to expand abroad:
- Many of the global markets these Chinese tea chains are entering are less saturated than China, making it easier to establish a strong presence.
- China's increasing coffee consumption, especially with the younger population, may also be driving chains to look outside the country for expansion.
- Chinese tea chains have also developed highly efficient operational models, including sophisticated supply chain management, which enables them to scale rapidly while controlling costs.
- The rising global popularity of tea varieties like bubble tea and the demand for new-style tea drinks with diverse flavors and customizable options also provides a strong foundation for expansion.
Mixue Ice Cream & Tea, which recently became the largest food & beverage chain in the world with over 45,000 locations, is just one of the Chinese tea companies expanding globally (although notably, the chain has no locations in the U.S.). Franchises like HEYTEA, Chagee, and Ningji are also finding success abroad.
The Technomic Global Foodservice Navigator Program recently released data showing where China’s quick-service restaurant (QSR) tea chains are currently popping up across the globe:
ChaPanda is set to enter France. Also known as Chabaidao, ChaPanda has entered several international markets since kicking off its global expansion in 2024.
Charlie’s Tea, also known as Cha Li Yi Shi, expanded into the U.K. and currently has an estimated 500 shops in its home market.
Chagee intends to open about 1,000 units in its home market, 50 in Hong Kong, 100 in Southeast Asia, and 10 in the U.S.
More Yogurt is set to enter Canada. The China-based QSR specializing in yogurt drinks currently has about 1,200 locations in its home market.
Ningji Lemon Tea expanded into the U.S. and entered the market via a new concept called Bobobaba, which serves bubble tea instead of fruit tea.
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