Chinese Tea Brands Increasingly Expanding Into South Korea To Challenge Korean Coffee Industry – CoffeeTalk

Chinese tea brands are increasingly focusing on the South Korean market as they face heightened competition in China and respond to the growing demand for healthier beverage options, pivoting away from the coffee dominance. A notable player, Chagee, which emphasizes milk tea and draws from traditional Chinese cultural aesthetics, has announced plans to establish three outlets in Seoul by the second quarter, marking its initial foray into East Asia beyond China.

By September’s close, Chagee operated 7,338 teahouses globally, having successfully penetrated several Southeast Asian markets, including Indonesia, Malaysia, the Philippines, Vietnam, Singapore, and Thailand. In a notable boost, the company reported a 75.3% year-on-year increase in its overseas gross merchandise value for the third quarter of 2025, reaching 300.3 million yuan (approximately US$43.6 million).

This expansion is fueled in part by a rise in South Korean travelers to China, made easier by Beijing’s visa-free visitor policies, who return with an appreciation for tea-based drinks that combine fresh fruits, juices, vegetables, and dairy elements, prepared directly in front of them.

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