After gaining a firm foothold across Southeast Asia, Chinese new-style tea brands are increasingly setting their sights on the United States, treating the market as their next major growth frontier.
Last weekend, Mixue Group officially entered the U.S. market with the opening of its first brick-and-mortar store in Hollywood, Los Angeles. Located directly opposite the iconic TCL Chinese Theatre on the Hollywood Walk of Fame, the store marks Mixue’s first physical presence in North America.
Often described as “new-style tea,” the category emphasizes freshly prepared beverages made with real fruit, fresh milk, and lower sugar content—positioned as a healthier alternative to traditional milk tea. This concept has resonated strongly with younger consumers worldwide, and momentum in the U.S. market has accelerated noticeably over the past year.
Rapid Store Growth Across Major U.S. Cities
Among the early movers, Heytea continues to lead the pack. On August 1, the brand opened a new store in Cupertino, Northern California. According to data from research firm Hongcan, Heytea now operates 35 stores across the U.S.—the largest footprint among Chinese new-style tea brands. Just a year ago, the brand had only two locations, underscoring the pace of its expansion.
Other players are following closely. Molly Tea has opened five U.S. outlets, while Chagee, China’s first new-style tea brand to list in the U.S., debuted at Westfield Century City in Los Angeles before opening a second store in the greater LA area within three months. Meanwhile, Lelecha entered both New York and Los Angeles in July, continuing its hybrid model that combines tea beverages with baked goods.
Strong Consumer Response Signals Market Potential
Early performance data suggests that U.S. consumers are responding enthusiastically. Heytea’s Times Square store in New York reportedly sold more than 3,500 cups on its first day of operation, with average daily sales exceeding 2,000 cups thereafter.
Molly Tea has also posted standout numbers. The company disclosed that its New York outlet generated over US$570,000 in revenue in October 2024—setting a record among Chinese new-style tea brands overseas. Its first Los Angeles store achieved gross merchandise value exceeding 4.19 million yuan (around US$595,000) in its first month, marking a new internal benchmark for international locations.
Strong openings were also reported by Auntea Jenny. During the first three days of operation, its Flushing store in Queens, New York, recorded more than 3,000 orders and generated approximately US$65,000 in sales.
Why the U.S. Has Become the Next Target Market
Industry observers say the shift toward the U.S. is driven by both necessity and opportunity. With Southeast Asian markets becoming increasingly crowded, brands are seeking larger consumer bases with higher average spending.
Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, notes that the U.S. market offers a rare combination of strong purchasing power, premium beverage demand, and openness to new consumer concepts. “For brands targeting consumption upgrades, the U.S. is a natural next step,” he said.
Zhan Junhao, founder of Fujian Huace Brand Positioning Consulting, adds that intense competition at home is pushing brands overseas. “Each brand is trying to differentiate itself through product positioning, store design, and pricing strategies, rather than repeating the same playbook,” he explained. Importantly, he noted that the U.S. new-style tea market remains fragmented, with no single dominant player—creating room for new entrants to establish scale.
Opportunities Come with Real Challenges
Despite the promising outlook, expansion in the U.S. is far from risk-free. High labor costs, rising rents in major cities, and cultural differences in taste and consumption habits can quickly erode margins if not managed carefully.
Both Wang and Zhan emphasize that long-term success will depend on more than rapid store openings. Brands will need to invest in localization, supply-chain stability, and clear market positioning to build sustainable competitiveness rather than short-term buzz.
As one U.S. social media user commented on X, American companies “should be ready for some real competition.” Whether Chinese new-style tea brands can turn early excitement into lasting market presence remains the next question—but momentum is clearly on their side.
