China’s New-Style Tea Brands Push Into the U.S., Signaling a Shift From Bulk Exports to Branded Growth
By Dan Bolton | Tea Biz Blog | Podcast
Chinese tea beverage companies are accelerating efforts to establish a direct retail footprint in the United States, marking a decisive shift away from anonymous bulk exports toward brand-led international expansion. At the center of this movement is CHAGEE, now widely viewed as the category leader in China’s fast-growing new-style tea sector.
CHAGEE’s newly released 2025 Year-End Tea Friends Review offers a snapshot of the scale and ambition behind this push. The company reports annual tea procurement volumes exceeding 10,000 tons, spanning six major tea categories and key Pu’er-producing regions, supported by partnerships with more than 100 tea factories. Its global store network now operates across eight countries, including the United States, with international expansion proceeding at an average pace of one new store every 1.7 days.
In April 2025, CHAGEE completed a NASDAQ listing, becoming the first freshly made tea beverage brand from China to list on a U.S. stock exchange and one of the largest global food and beverage IPOs since 2022. Overseas membership across Asia-Pacific markets rose 177% year-on-year, with more than 60% of members under 30—highlighting tea’s growing resonance as a lifestyle product among younger consumers.
In 2024, Chagee Holdings reported annual revenue of 12.41 billion CNY, a 167.35% increase from the previous year. Third quarter revenue for the period ending Sept. 30, 2025, was 13.27 billion, up 19.3% YoY, according to Stock Analysis.
CHAGEE’s flagship BO•YA Jasmine Green Milk Tea has emerged as a global bestseller. According to Frost & Sullivan data cited in the company’s report, the beverage surpassed 1.25 billion cups sold between 2022 and mid-2025 and ranks among the top-selling SKUs in Indonesia, the Philippines, Vietnam, and Thailand. Preferences vary by market, reflecting a localization strategy that tailors flavor profiles while maintaining a consistent brand identity.
A Reuters analysis published in December situates CHAGEE within a broader wave of Chinese tea brands testing overseas expansion, including Molly Tea, a Shenzhen-founded chain known for jasmine-forward milk teas and minimalist branding. Molly Tea expanded rapidly to more than 1,000 stores in China before beginning to test franchised locations overseas, including in North America, with a strong emphasis on Gen-Z consumers and social-media-driven launches.
The U.S. push reflects intensifying competition at home. China’s branded tea sector has seen explosive store growth over the past decade, but by 2024–25, many chains faced slowing same-store sales growth and rising operating costs. Moving closer to end consumers abroad allows brands to pursue higher margins, control storytelling, and compete in premium lifestyle segments traditionally occupied by Western specialty cafés and Japanese matcha houses.
According to Reuters and Chinese trade media, CHAGEE’s average unit revenues in China are estimated at RMB 2.5–3.0 million per store annually, with average ticket prices in the RMB 18–25 range—positioning the brand between mass bubble-tea chains and premium café formats.
According to Reuters, The Business Times, and Chinese trade media, CHAGEE’s average unit revenues in China are estimated at RMB 2.5–3.0 million per store annually, with average ticket prices in the RMB 18–25 range—positioning the brand between mass bubble-tea chains and premium café formats. Translating that model to the U.S., however, presents challenges. What works at the equivalent of USD $3 in Chengdu does not directly translate to $6–7 price points in Los Angeles or New York, once labor, rent, compliance, and logistics are factored in.
Regulatory and geopolitical considerations also loom large. Chinese brands entering the U.S. must navigate tariff exposure, FDA compliance, labor regulations, and heightened scrutiny of Chinese consumer brands, all while building local supply chains and adapting menus to American tastes without diluting brand identity.
For established U.S. tea importers, distributors, and specialty retailers, the arrival of China’s new-style tea brands presents a mixed picture. These entrants may become partners, customers, or direct competitors, reshaping consumer expectations around tea as a branded, design-forward retail experience rather than a packaged commodity.
What is clear is that tea’s next phase of globalization is increasingly being driven not by bulk shipments, but by retail format, brand storytelling, and experiential consumption—with Chinese companies now placing visible bets on winning over American consumers.
Biz Insight
CHAGEE’s growth doesn’t signal the end of specialty tea—but it does reset consumer expectations. What stands out isn’t scale alone; it’s how tea is framed as social, immediate, and visually compelling. Younger consumers are discovering tea through shared moments, not solitary rituals, and through beverages, not leaf formats. For specialty retailers, the opportunity isn’t imitation—it’s translation. The brands that win will be those that retain depth and provenance, while meeting consumers where they are: at the cup, in the moment, and increasingly, together.
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