Your next cup of tie guan yin might come topped with a layer of fresh vanilla cream and bits of roasted pecan, thanks to Chagee‘s innovative approach to modernizing oolong tea.
“The world will always belong to the young,” says Chagee CEO Zhang Junjie. “If young people are not drinking tea, then there will be no future for tea.” This perspective drives Mr. Zhang’s mission to make tea more accessible and attractive to younger generations globally, in contrast to coffee’s widespread popularity.
Chagee, founded in Yunnan province seven years ago, has been revolutionizing the tea-drinking experience with trendy flavors and modern presentations. The brand, which boasts over 4,500 stores worldwide, achieved a record $108 billion in sales in 2023 and aims to become the world’s largest tea company.
At a recent conference in the Shanghai Expo Centre on International Tea Day, Mr. Zhang, 31, shared his vision with around 1,000 attendees and five million online viewers. The event featured a roundtable discussion with experts, including Wang Qing, President of the China Tea Marketing Association, who highlighted Chagee’s role in bridging traditional Chinese tea culture with modern lifestyles.
Chagee’s expansion strategy includes over 100 outlets in Malaysia and a planned comeback in Singapore with three new stores in Raffles City, Plaza Singapura, and orchardgateway. These outlets will feature soothing tea-toned interiors and menu offerings like cakes made from Chagee’s teas.
Mr. Zhang’s passion for globalizing Chinese tea was ignited during a trip to Kuala Lumpur, where he observed the thriving local milk tea businesses. This experience inspired him to create a global tea brand that connects people across cultures, similar to ancient tea trade routes.
Chagee focuses on high-quality ingredients and innovative brewing techniques, using freshly picked tea leaves instead of powdered tea and blending them with silky milk for a full-bodied flavor. The brand’s best-selling jasmine green milk tea sees about 438 cups sold every minute worldwide.
Technological advancements have played a crucial role in Chagee’s success. The company’s fully automated production process ensures consistency and efficiency, maintaining a variance of just 0.2 percent in product quality. Mr. Zhang’s experience from his first job at a milk tea chain helped him implement efficient processes and modern management tools, addressing common issues like food safety and operational efficiency.
Chagee also emphasizes social responsibility, launching initiatives such as a “silent” concept store in Hangzhou, which employs modern technology to facilitate communication for employees with hearing impairments. The brand also eliminated unhealthy ingredients like trans-fatty acids and introduced detailed nutritional “identity cards” for every drink, aligning with government nutrition labelling schemes.
Chagee’s franchise model supports controlled expansion, establishing fully-owned subsidiaries in new markets to ensure product viability before allowing franchisees to open stores. This approach has enabled steady growth without compromising on quality.
The brand also engages in cultural collaborations, such as the Tea World of the Forbidden City exhibition with the Palace Museum in Beijing. Mr. Zhang plans to bring this experience to museums in New York, London, and Paris.
“The push for the globalisation and modernisation of tea is not something Chagee can accomplish alone. It requires a joint effort from industry partners, competitors, government agencies and consumers alike,” says Mr. Zhang. With his sights set on expanding the reach of Chinese tea culture, Mr. Zhang is modernizing the tea experience and paving the way for a new generation of tea drinkers.
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