On March 3, via its official media channels, the Chinese bubble tea brand Chagee extended its greetings to Vietnamese tea enthusiasts. The brand has already established its presence on TikTok, Facebook, and Instagram in Vietnam. In October 2024, Chagee announced recruitment for HR, marketing, and project management positions in Vietnam, signaling a well-structured approach to market entry and the establishment of its store network.

Chagee, a renowned bubble tea brand from China, was founded in 2017 in Yunnan. According to the brand’s introduction, Chagee was established by a group of tea enthusiasts with strong business acumen, aiming to explore the highly competitive beverage market. The brand blends traditional tea flavors with modern innovations, offering consumers a distinctive taste experience.
In China, Chagee has established a strong presence in major cities and has expanded into Malaysia, Thailand, and Singapore. Currently, its global store count exceeds 4,500 locations.
Expert Insights on Chagee’s Market Entry into Vietnam
Commenting on Chagee’s entry into Vietnam, F&B expert Nguyễn Thái Bình noted that the brand could serve as an alternative to the prevailing strong-flavored teas.

“Over the past four years, strong-flavored tea has dominated the market. However, Chagee’s arrival could rejuvenate the demand for lighter tea flavors. Positioned above the mass-market red tea segment (such as Ngô Gia Black Tea) and competing directly with Taiwanese brands like KOI Thé and Gong Cha, Chagee introduces a refined alternative.”
Furthermore, Bình projected that aligning with the rising trend of natural ingredients and fresh juice-based beverages could cater to the growing consumer preference for low-calorie yet flavorful drinks, driven by a sugar-reduction trend.
However, the expert believes that Chagee’s entry will not significantly impact existing brands such as Katinat or Phê La, as these brands have well-established product portfolios, seasonal strategies, and strong visual branding for customer engagement.
“Chagee does not have a substantial competitive edge over them. The competition in the bubble tea market will revolve around trendsetting and customer attraction, especially for brands with strong financial backing and established reputations,” Bình added.
What Makes Chagee Unique?
Since its inception, Chagee has positioned itself in the premium segment, meticulously selecting high-quality ingredients. Its diverse menu combines traditional Chinese teas with modern preparation techniques and unique toppings. Offerings range from oolong tea and jasmine tea to an array of fruit-infused teas.
The brand’s best-selling item is the Jasmine Green Milk Tea, with approximately 438 cups sold per minute worldwide. According to Chagee, its product variation margin is only 0.2%, ensuring a consistently high-quality experience across every cup.
Chagee employs a centralized kitchen model to procure, process, and distribute ingredients, maintaining uniform product quality and operational efficiency.
Additionally, the brand has eliminated unhealthy ingredients such as trans fats from its beverages. In 2023, Chagee introduced detailed “nutrition cards” for each drink, providing information on calorie content, protein, carbohydrates, and fats.
Chagee is among the first Chinese tea brands to implement this approach, aligning with Shanghai’s pilot program for sugar-sweetened beverage labeling—similar to Singapore’s Nutri-Grade and the UK’s Nutri-Score. The brand also offers a calorie calculator on its mobile app, allowing customers to make informed choices.
Chagee places significant emphasis on visual branding. One of its signature design elements is its paper cup, which features floral patterns reminiscent of Dior handbags. This distinctive aesthetic has garnered widespread attention and appeal.
The brand has demonstrated remarkable expansion capabilities. Within just one year of launching its first store in Yunnan (October 2018), Chagee established an overseas business division, primarily targeting Southeast Asian markets.
In August 2019, Chagee opened its first international store in Kuala Lumpur, Malaysia. The brand quickly gained traction, surpassing 100 locations in Malaysia.
Over five years, Chagee expanded beyond Yunnan to Sichuan, Chongqing, Zhejiang, Guangdong, Jiangsu, Anhui, Guizhou, Henan, Shaanxi, Shandong, Guangxi, Jiangxi, Tibet, Fujian, and other regions. Simultaneously, the brand established over 70 outlets in countries such as Malaysia, Thailand, and Singapore.
Chagee prioritizes high-footfall urban locations to maximize brand visibility and customer traffic. In 2023, the company sold over 230 million cups of bubble tea, averaging 24,000 cups per store per month.
Vietnam’s Bubble Tea Market Landscape
Vietnam’s bubble tea market has undergone significant fluctuations. While it has rebounded since the peak of the COVID-19 pandemic, traditional bubble tea chains have experienced declining revenue and profitability. Brands such as TocoToco, KOI Thé, Ding Tea, and Bobapop have struggled with business performance.

Conversely, newer brands have emerged as dominant players, surpassing legacy chains. For instance, Mixue—a Chinese bubble tea and ice cream franchise—recorded a 2.6x increase in revenue in 2023, reaching VND 1.257 trillion. Its pre-tax profit tripled to VND 204 billion, with over 1,500 stores established within five years of entering Vietnam.
Similarly, Phê La, another rising brand, outperformed many long-standing chains. In 2023, it achieved a revenue of VND 300 billion and an after-tax profit of VND 52 billion.

Chagee’s entry into Vietnam will add another competitive force to this evolving market, challenging both established and emerging players.
(According to Doanh Nghiep & Kinh Doanh)
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