Chagee suits S. Korea consumers to a 'tea'

The iced coffee sector is likely facing a new challenger in South Korea from a rival beverage option. In the upscale Seoul shopping district of Gangnam and the student hub of Sinchon, a wave of Chinese "new tea" brands is capturing market share, turning beverages into lifestyle accessories in the process.

Leading the charge is Chagee, a Chinese premium tea chain. Since launching three flagship stores in Seoul's prime commercial hubs earlier this year, the company has triggered scenes more reminiscent of a tech product launch than a beverage shop opening.

Wait times peaked at about five hours, with single-store opening day sales surpassing 2,000 cups. The company has since added two more locations, capitalizing on a viral fervor that has seen its signature jasmine-infused whole-leaf tea sell roughly 1,500 cups daily per store.

The appeal extends beyond flavor. Chagee's aesthetic, featuring blue-and-white porcelain cups and calligraphy logos, taps into a growing consumer preference for "Instagrammable" assets. In a market where visual presentation drives foot traffic, the brand's packaging acts as a form of "social currency".

Many South Korean consumers are said to be engaging in "re-creation" — repurposing empty cups into vases or shelf-based knickknacks, and hunting for city-exclusive designs — in some cases, turning a low-ticket beverage item into a recurring revenue driver through collectibility.

Chagee's expansion is part of a broader pivot among Chinese food and beverage giants seeking growth beyond the competitive domestic market. Data released at the 2026 China Chain Restaurant Summit in Shanghai underscore the scale of this outbound shift. The top 50 Chinese food and beverage brands going global now operate a combined 6,801 stores overseas, with freshly made tea drinks leading the charge. Mixue Group — a budget-friendly rival — has already surpassed 4,000 overseas venues.

For Chagee, the financial upside is evident. The company reported a 139 percent year-on-year surge in overseas gross merchandise value, reaching 426 million yuan ($62.8 million) in the first quarter, supported by a network of 374 offshore stores.

"The dynamic is shifting from price competition to value creation," said Peng Jianzhen, president of the China Chain Store & Franchise Association, during the summit.

Industry analysts cited three core strengths driving the overseas push of the new wave of Chinese tea beverages: deep cultural heritage, supply chain efficiencies that bolster value propositions and agile localization capabilities.