Chinese tea beverage brands launch global expansion from Southeast Asia

Living close to Bangkok University in Thailand, Anusara Kaewusng's daily routine involves visiting one of the stores of Chinese tea beverage brand "BING CHUN" and buying two freshly made drinks.

"This tastes amazing! It combines the fruity flavors of lemon and strawberry with a light tea aroma," Kaewusng said after taking a refreshing sip of a strawberry lemon tea. She considers the tasty beverage to be an integral part of her lifestyle.

BING CHUN is a sub-brand owned by Henan Liangdi Catering Management Co., Ltd., headquartered in Xinxiang City, central China's Henan Province. The company has opened more than 3,000 stores globally, with about 500 located in Southeast Asia.

According to Cheng Dong, chairman of BING CHUN, the brand's delicious flavors and affordable prices have caused its popularity to surge in Southeast Asia.

Chinese freshly brewed tea beverage brands like Gongcha and Mixue are becoming increasingly popular in Southeast Asian countries like Vietnam, the Philippines, Indonesia and Singapore. These brands have become a familiar sight on the bustling streets of major cities.

Cheng stated that Southeast Asia is a key starting point for Chinese tea beverage brands expanding overseas, thanks to favorable market preferences and the strong cultural and economic ties established by the Belt and Road Initiative.

"We plan to keep expanding in countries along the Belt and Road, bringing new Chinese tea drinks to more consumers," he said.

The Belt and Road Initiative, introduced in 2013, includes the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It has become a key platform for international cooperation.

Chen Zhenjie, vice president of the China National Food Industry Association, said that the initiative promotes the values of interconnectedness and mutual benefit.

"Tea was a vital commodity on the ancient Silk Road and Maritime Silk Road. Today, Chinese freshly made tea drinks bring a new 'sweet' experience to the world, continuing the legacy of cultural exchange and goodwill," he said.

According to BING CHUN's product development team, their drinks retain the essence of traditional tea while adding modern twists to meet diverse consumer preferences. By blending tea or its extracts with ingredients like juice, honey and milk, their products have become especially popular among young people.

Cultural innovation also plays a significant role in the success of these brands. For example, Mixue's super IP and mascot "Snow King" has become cultural icons, transcending beverages to build loyal followings across diverse regions.

By the end of 2023, global social media topics related to "Snow King" and Mixue's theme songs had garnered cumulative exposures exceeding 8.7 billion and 8.4 billion views, respectively.

To support their global operations, companies have established comprehensive supply chains.

According to Han Xiaoli, head of BING CHUN's supply chain division, their lemons are sourced from southwest China's Sichuan Province, known as the "Hometown of Lemons." Other ingredients like coffee, tea, mangoes and grapes also come from top production regions.

Mixue leverages its global procurement network and production capabilities to adapt ingredient supply plans to local markets. With localized logistics systems, including self-operated warehouses and delivery services, it ensures a stable and reliable supply chain for its stores.

At present, Chinese freshly brewed tea beverage brands are rapidly expanding their overseas presence, with the number of stores growing at an impressive rate.

As of January 2024, Mixue had opened over 36,000 stores worldwide, nearly 4,000 of which are located in 11 overseas countries, including Thailand, Japan, the Republic of Korea and Australia. This makes Mixue the leading freshly brewed tea beverage brand in Southeast Asia. Similarly, HEYTEA, another popular Chinese tea beverage brand, has established locations in countries such as Britain, the United States, France and Canada.

According to statistics released during this year's China-ASEAN Expo, the market size of new-style tea drinks in China reached 193.3 billion yuan (about 26.89 billion U.S. dollars) in 2023, a year-on-year increase of 15.7 percent. The figure is expected to reach 250 billion yuan by 2025.

"Tea drinks play an important role in social gatherings. Like traditional Chinese tea, they continue the legacy of cultural exchange. As global connections grow, these modern flavors will strengthen cultural bonds and share China's unique tastes with the world, "said Chen.