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Spilling the Tea Behind Chagee’s Rapid Apac Expansion

The Business Times (Singapore)
The Business Times (Singapore)•May 8, 2026

Why It Matters

Chagee’s rapid, location‑driven expansion and health‑focused positioning could redefine premium tea consumption in APAC, challenging coffee’s dominance and opening new revenue streams for investors.

Key Takeaways

  • •Chagee aims for 1,000 APAC stores by 2026.
  • •Focus on level‑one locations with 100 sqm spaces for customers.
  • •Streamlined menu: 80‑85% milk tea, health‑focused, minimal toppings.
  • •Rapid 2025 expansion: Indonesia, Thailand, Vietnam, Philippines added stores.
  • •Single app serves 44.7 million registered users across the region.

Summary

Chagee, the Singapore‑born premium tea chain, is accelerating its footprint across Asia‑Pacific, targeting more than 1,000 stores by 2026 after reaching roughly 300 locations at the end of 2025. The company’s rollout this year included Indonesia, Thailand, Vietnam and the Philippines, with a South Korean launch slated for April 2026, underscoring a deliberate push into the region’s emerging tea markets.

The expansion hinges on three pillars: securing level‑one, high‑visibility mall spaces of at least 100 sqm, simplifying the menu to a core milk‑tea offering that accounts for 80‑85% of sales, and leveraging a single cross‑border app that now counts 44.7 million registered users. By exiting underperforming franchise arrangements and re‑entering markets directly, Chagee has built a network of 40 Singapore stores, over 220 in Malaysia, and dozens in each new market, aiming to double its store count within a year.

Leadership emphasizes local integration, noting that each outlet employs local staff and reflects the current “Chinese wave” of consumer trends. The brand positions itself as a healthier alternative to traditional bubble tea—averaging 150 calories per cup versus 500‑600—highlighting top flavors such as Oolong Jasmine Green, Peach Oolong, and Tieguanyin. Future plans include health‑focused toppings, further differentiating the menu.

Analysts see Chagee’s strategy as a bid to elevate tea to the lifestyle status coffee enjoys, tapping into the world’s second‑most consumed beverage. With tea’s untapped breakfast and daytime segments, the company’s aggressive real‑estate strategy and unified digital platform could reshape APAC’s F&B landscape and attract significant investor interest.

Original Description

Chagee has over 300 stores in Asia-Pacific, and is looking to double that by 2027. But how did this tea chain scale up so quickly? BT speaks to Eugene Lee, chief marketing officer of Chagee Apac, who shares about the brand’s expansion strategy and how it stands out in a saturated beverage market.
Read more: https://bt.sg/hGic
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