Chinese New-Style Tea Brands Expand Globally, Seeking New Markets

Chinese new-style tea brands, exemplified by HEYTEA, are making a global push to discover growth opportunities beyond the competitive domestic market. These modern tea brands, which incorporate diverse ingredients like fresh fruits, tea leaves, milk, and cheese, have gained popularity among young Chinese consumers.

HEYTEA’s U.S. Entry: In early December, HEYTEA opened its first U.S. store on Broadway, New York, marking a significant step in its global expansion. The brand aims to provide a high-quality and joyful tea experience to consumers in New York and contribute to the development of the U.S. tea industry.

Global Expansion Trends: HEYTEA, with over 3,000 domestic stores, initiated its overseas expansion by opening a store in Singapore in 2018. In 2023, it accelerated its globalization efforts by establishing outlets in the United Kingdom, Australia, Canada, and the U.S. Other Chinese new-style tea brands like Naixue and ChaPanda also ventured into overseas markets.

Innovative Combinations: New-style tea drinks have gained popularity for their innovative combinations of ingredients, offering rich flavors and colors. This trend has not only enhanced the tea-drinking experience for consumers but has also increased the demand for tea leaves as raw materials.

Tea Trade Impact: The expansion of new-style tea brands abroad has created new sales opportunities for tea processing firms. Houtang, a tea bio-tech firm in Guizhou Province, has established partnerships with over 100 new-style tea brands, supplying products to more than 50,000 stores across China and in certain Southeast Asian countries.

Market Potential: While the domestic market remains highly competitive, there is substantial untapped market potential among Western consumers. Southeast Asian countries continue to be major destinations for Chinese new-style tea brands looking to expand overseas.

Chinese new-style tea brands are leveraging their unique offerings and innovative approaches to tap into international markets, aiming to rejuvenate the global perception of Chinese tea.

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