Chinese Tea and Coffee Brands Take Over the World

TMTPOST -- Beneath the neon lights of Times Square in New York, Mark, an employee of a major Chinese tech company on a business trip, enthusiastically recommends a coconut latte to his American colleagues. Beside him, the blonde-haired, blue-eyed Stacy clutches a signature blue cup and exclaims, “Which genius came up with putting coconut milk into iced coffee—and it’s only $1.99! I’m saying goodbye to Dunkin’ from now on!”

Scenes like this are no longer confined to New York. From Manhattan to Melbourne, Jakarta to London, Chinese tea and coffee brands are expanding aggressively, reshaping the global freshly-made drinks industry and challenging long-established Western giants.

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From Southeast Asia to the West: Chinese Brands Go Global

In recent years, it has become increasingly common to see Chinese-style milk tea and coffee overseas. With domestic competition heating up, leading brands have accelerated global expansion, tailoring strategies to different regions.

This summer, Luckin Coffee opened two new pick-up stores in New York, offering drinks at $1.99—a move that drew attention from local finance professionals and positioned the brand as a challenger to Starbucks, just a block away. Since its first overseas steps in 2023, Luckin has expanded across Singapore and Malaysia, signaling a shift from culturally familiar Asian markets to mature, competitive Western markets. The New York store’s “00002” serial number hints at Luckin’s ambitions: “The empress returns to the palace.”

Meanwhile, Mixue Bingcheng, the “Snow King,” has surged across Southeast Asia. By June 2025, Mixue operated more than 53,000 stores worldwide, including 4,733 overseas locations in Indonesia and Vietnam. Its overseas expansion, though smaller in proportion to its total network, signals nearly limitless potential.

Bawang Tea, another domestic rival, has carved a strong overseas presence with 208 international stores as of June 2025, generating revenue of 235 million yuan in a single quarter—a 77.4% year-on-year increase. Pricing strategies are differentiated: a Boya Juexian costs about 23.4 yuan in Malaysia and 41 yuan in the U.S.

Pioneers like Gong Cha and HEYTEA have established footholds in multiple global markets, with HEYTEA operating over 115 overseas stores as of August 2025. Southeast Asia remains a primary target due to its cultural affinity for tea: Mixue Bingcheng’s 2,667 stores in Indonesia and 1,304 in Vietnam make it the largest freshly-made beverage brand in Vietnam, while Bawang Tea’s 178 stores in Malaysia account for 85.6% of its overseas network.

According to iiMedia Research, the compound annual growth rate (CAGR) of freshly-made beverages in Southeast Asia is projected to reach 19.8% from 2023 to 2028, far exceeding the global average of 7.2%. After 2024, more brands have ventured into Europe and North America. HEYTEA has opened in France, Bawang Tea in the U.S., ChaBaiDao in Spain, and Jasmine Milk White in the UK.

While overseas growth is promising, Chinese tea brands face battles as intense as those in their domestic market. Luckin’s initial New York price war of $0.99–$1.99 drinks has given way to standard pricing: Americanos range from $3 to $5, specialty drinks like coconut lattes hover around $6.5. High operating costs—including Manhattan rents that average $659 per square foot annually in prime districts—make aggressive discounting difficult.

In Southeast Asia, Mixue’s low prices draw customers but compress franchisee profit margins, occasionally triggering protests. Supply chain hurdles add further complexity: European pesticide checks on tea leaves are far stricter than domestic standards, Southeast Asian packaging and sugar regulations increase compliance costs, and varying consumer preferences—from organic demands in the West to bold flavors in Southeast Asia—require careful adaptation.

Product development timelines are also stretched: it typically takes 3–6 months to bring a new drink to market overseas, from ingredient sourcing to compliance checks. While digital tools and mature supply chains have shortened timelines, cross-border logistics and local production constraints remain key challenges.

Competition is fierce in every market. In Southeast Asia, local coffee brands like Indonesia’s Kopi Kenangan compete for market share. In Europe and North America, Starbucks and Dunkin dominate. Even in regions yet to see large chains, independent milk tea shops run by Chinese entrepreneurs fill the niche.

Experts agree that global success requires more than replicating domestic models; localization is crucial. HEYTEA’s “California Sunset” in Beverly Hills sold 2,000 cups on opening day, aligning with local tastes and aesthetics. Mixue Bingcheng introduced extra-sweet fruit teas featuring lemongrass and pineapple in Southeast Asia, while CHAGEE’s roasted grain tea became an instant hit in Malaysia.

Supply chain strategies are similarly localized. Mixue established warehouses in four overseas countries and signed agreements to purchase 4 billion yuan of coffee beans from Brazil for expansion into the Americas. CHAGEE allocated 12% of IPO proceeds to build an international supply chain platform, and Luckin sources coffee beans from Ethiopia, Panama, Colombia, and Yunnan, China.

Marketing also embraces local culture. Luckin strategically places stores in New York’s bustling areas and engages audiences on Instagram, TikTok, and X with influencer campaigns and hashtag challenges like #luckinnyc. Bawang Tea and HEYTEA create cultural experiences, from pop-up tea rooms to co-branded products with institutions like the British Museum, blending “selling products” with “selling culture” and “selling experiences.”

Slow Tea founder Ye Guanzhao notes, “Going global must be done healthily—by building brands, products, and systems. A mindset of just picking up scraps won’t last.” Chinese tea brands are learning to balance global ambition with local engagement, adjusting strategies to meet diverse market demands.

A Global Tea and Coffee Revolution

Mark, sipping his coconut latte in Times Square, observes that Chinese milk tea and coffee have evolved from niche offerings for international students to beverages embraced by locals. Ten years ago, domestic brands cultivated a massive, loyal consumer base; today, they are taking the world stage, potentially redefining global perceptions of tea and coffee.

From New York to Southeast Asia, Chinese tea and coffee brands are not merely exporting products—they are exporting culture, taste, and experience. As competition intensifies and localization strategies mature, the outcome of this global “tea beverage war” will determine whether these brands become household names worldwide—or just another passing trend.

With a blend of bold flavors, strategic localization, and cultural storytelling, Chinese tea and coffee brands are challenging the status quo, one cup at a time. The world is watching—and sipping along.