<div id="readability-page-1">More than 60 of these brands were operating over 6,100 outlets across the region by the end of 2024, a large share of which were from major chains like Mixue and Chagee, according to Singapore-based consultancy Momentum Works.However, the market is becoming increasingly saturated, particularly in the tea segment. As competition intensifies, the focus is shifting away from rapid rollout toward improving store performance and tightening operations, Caixin Global reported.Ice cream and milk tea chain Mixue, which is now the world's largest food and beverage chain by store count, noted in its 2025 interim report that it had begun adjusting and streamlining outlets in Indonesia and Vietnam, with store counts in both markets declining in the first half of last year.Despite these changes, the company said the region remains a focus, even as it pushes into new markets in Central Asia, including the opening of its first store in Kazakhstan.Chagee, best known for its milk tea, is also planning to enter South Korea with three stores in Seoul in the second quarter of this year, joining a growing group of peers already in the market, including Heytea, Mixue, ChaPanda and Auntea Jenny. It has also signaled plans to expand into Japan.Choi Yong-hee, a graduate student in Seoul’s Sinchon university district, where Chagee plans to open an outlet, first tried the brand during a family trip to Shanghai last October.&#34;What I liked about Chagee was that the milk tea wasn’t too strong and was fragrant, making it easy to enjoy. I haven’t been able to find milk tea like this in Korea,&#34; he told The Korea Times. &#34;I’m glad I can have it more often now.&#34;<table><tbody><tr><td><img src="https://imageproxy.pbkrs.com/https://vcdn1-english.vnecdn.net/2026/04/11/unnamed-jpg-1775813635-5755-1775885379.png/query-ZHByPTEmZml0PWNyb3AmaD0wJnE9MTAwJnM9NTFwSm11NEM1MWlwQjc1UkVISmpSQSZ3PTY4MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://vcdn1-english.vnecdn.net/2026/04/11/unnamed-jpg-1775813635-5755-1775885379.png/query-ZHByPTEmZml0PWNyb3AmaD0wJnE9MTAwJnM9NTFwSm11NEM1MWlwQjc1UkVISmpSQSZ3PTY4MA"/></td> </tr><tr><td> A Heytea outlet in South Korea. Photo from Google Maps </td> </tr></tbody></table>For Chinese brands, competition at home is intense, with the past decade’s milk tea boom pushing the number of outlets in the market to around 420,000. Some stores have been setting prices at below US$1 or offering free online orders to attract customers, according to the New York Times.Beyond nearby Asian markets, many brands have also been moving westward to the United States.The Western country has emerged as one of the most closely watched markets for the sector, with the number of freshly made tea merchants there rising by 18.2% year-on-year to 7,845 in 2025. Industry tracker Hongcan projects that the U.S. market for freshly made tea drinks will reach $2.9 billion by 2029.Expanding there, however, has not been without challenges. Amanda Wang, co-founder of beverage chain Ningji Lemon Tea, said that products tailored to American consumers tend to be sweeter than those offered in China, reflecting the need to adapt to local tastes.She also pointed to differences in the business environment.&#34;Doing business here is quite different from what we imagined in our heads. It took seven months to open the store, which was quite painful,&#34; she told Reuters.Even so, several Chinese players, including Mixue, Chagee, Chahalo, Molly Tea and Auntea Jenny, have launched U.S. stores or announced expansions in recent years.<table><tbody><tr><td><img src="https://imageproxy.pbkrs.com/https://vcdn1-english.vnecdn.net/2026/04/11/2026t160408z-mt1sipa000nx8kfi-3758-8901-1775885379.jpg/query-ZHByPTEmZml0PWNyb3AmaD0wJnE9MTAwJnM9Y3Z6OC01Y21PUjJjdXdKdVpyQ0dBUSZ3PTY4MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://vcdn1-english.vnecdn.net/2026/04/11/2026t160408z-mt1sipa000nx8kfi-3758-8901-1775885379.jpg/query-ZHByPTEmZml0PWNyb3AmaD0wJnE9MTAwJnM9Y3Z6OC01Y21PUjJjdXdKdVpyQ0dBUSZ3PTY4MA"/></td> </tr><tr><td> Exterior view of Mixue's restaurant chain location in Manhattan's Korea-town, New York, NY, Jan. 15, 2026. Photo by Sipa USA via Reuters </td> </tr></tbody></table>Compared with its typical outlet back home, Mixue’s newly opened store in New York is more than twice as large. Even with the expanded size, the store keeps the brand’s familiar look and layout.Low prices remain central to its appeal, with its best-selling ice cream cone costing $1.19 and milk tea starting from $3.49, compared with $6-7 for a cup of coffee or non-caffeinated drinks in New York.Still, price is not the only draw for Chinese tea brands. HeyTea, whose drinks average about $10, has seen strong demand.Its Times Square store, opened last year, sold more than 3,500 cups on its first day and has since averaged over 2,000 cups daily, according to the company.Other brands have seen similarly strong debuts. Chagee sold more than 5,000 cups on the first day of its U.S. launch while Auntea Jenny’s debut store in New York saw 3,024 orders and $65,000 in gross merchandise value during its initial opening period.Ishtiyaq Shajahan, a college student, said Chinese brands stand out from established chains like Starbucks for their flavors.The Brooklyn native said he tried out Chinese-style tea drinks a few years ago.&#34;You can try different Chinese items like pandan jelly, grass jelly or different fruits like lychee ... that's why I like it. I like those more different kinds of flavors,&#34; he told China Daily.Shajahan recently visited Mixue’s New York outlet with his brother Aqib and their friend James Gonzalez, who had gotten acquainted with the brand during a trip to Singapore.&#34;I think it does a good job setting up other bubble tea franchises. A lot of them tend to be pretty expensive. I think this one's more affordable. And it just feels more warm and welcoming, more friendly,&#34; Gonzalez said.</div>

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Chinese milk tea brands are expanding into the U.S. and South Korea as competition in Southeast Asia intensifies. Major chains like Mixue and Chagee are adjusting their strategies, focusing on improving store performance rather than rapid expansion. Mixue, now the largest food chain by store count, is also entering Central Asia. In the U.S., the market for freshly made tea drinks is projected to reach $2.9 billion by 2029, with brands adapting to local tastes. Despite challenges, several Chinese brands have successfully launched stores in the U.S., attracting strong demand with unique flavors and competitive pricing.

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Chinese milk tea brands expand in US, South Korea as Southeast Asia grows crowded