CHAGEE targets Japan and South Korea in Asia expansion push

The milk tea brand leans on ‘everyday luxury’ to shift perceptions around tea.

CHAGEE is accelerating its expansion across Asia with plans to enter Japan and South Korea, building on recent launches in Indonesia, Thailand, and Vietnam.

The Chinese milk tea brand is also set to open in the Philippines this August as part of its broader ambition to modernise tea culture and establish itself as a lifestyle brand in the region.

Asia is a natural launchpad for international growth, Eugene Lee, chief marketing officer at CHAGEE Asia-Pacific, told QSR Media.

“There is less initial education required,” he added, citing tea’s presence in both formal and casual settings across the region.

CHAGEE aims to make premium tea accessible to younger consumers through what it calls “everyday luxury.” Lee likened tea’s image to how coffee was perceived two decades ago: “boring, functional, and a commodity.”

But just as international brands turned coffee into a lifestyle, CHAGEE seeks to shift perceptions around tea through “sexy packaging, beautiful spaces, and innovative drinks.”

“Coffee earned its place in consumers’ lives by winning with Millennials in the 2000s and 2010s,” Lee said in an emailed reply to questions. The company wants to do the same for tea.

To support this positioning across culturally diverse markets, CHAGEE relies on culture, health, and friendship, whilst allowing local teams to adapt campaigns accordingly.

“We work very closely with each individual market on how to translate, interpret, and localise our brand pillars,” Lee said.

In Malaysia, CHAGEE worked with creative studio Loka Made to highlight the traditional art of songket hand-woven silk or cotton. In Singapore, it partners with yoga and fitness studios to align with the country’s wellness-driven consumer base.

The brand also tracks lifestyle trends, including the growing interest in collectibles. “Labubu by Pop Mart has triggered strong consumer excitement,” Lee said. In response, CHAGEE launched its own “Bes-Tea” plushies in Malaysia, Singapore, and Thailand for International Friendship Day on 30 July.

“A bestie is someone who is with you through thick or thin,” he said. “ Embracing that spirit, our Bes-Tea plushies are designed to be hung on handbags or laptop bags, and will stay by your side through it all.”

Lee said his focus is on talent development, building brand affinity, and ensuring localisation across new markets. “Sales and volume are important, but in the initial years of launch, it’s even more critical to focus on the right things,” he said. “It’s a delicate balance, especially in the early stages where resources are limited and standardisation remains key.”

CHAGEE plans to open in 100 countries in the next five to 10 years. “The goal for the brand is to become the global ambassador and voice for the tea category and modernise the way consumers all around the world feel and think about tea as a beverage.”