Amid surging tea chain growth in China, Shenzhen-based Heytea is seeking to build upon debuts in the UK, Australia, the US and South Korea made within the last 12 months while pursuing further international opportunities
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A Heytea store in Shenzhen, China | Photo credit: Joshua Fernandez
China’s Heytea is focusing on entering new international markets amid stiff competition from tea chain rivals in its native market.
Founded in Shenzhen in 2012, Heytea opened a record 2,350 new stores in 2023, primarily in China where it entered more than 200 new cities. However, Heytea has increasingly been seeking opportunities overseas after losing ground to domestic tea-focused competitors.
The business launched a domestic franchise model in November 2022 and expanded the programme to international markets in March 2023 to scale its overseas presence beyond Singapore, where it has opened six stores since 2018.
The move saw the tea chain enter the UK with a store in London’s Chinatown in August 2023 before launching in Australia and Canada two months later. In December 2023, Heytea opened its first stores in Malaysia and the US – with the latter market described as of ‘extraordinary significance’ for its international growth. Heytea has 22 stores in development in the US to add to its two sites in New York.
Heytea opened a further 800 net new stores during the first six months of 2024, primarily in China but also including a first store in South Korea in March 2024. The chain, which markets itself as a ‘new Asian tea brand’, is poised to enter an eighth overseas market with an outlet in Paris, France, in July 2024.
Despite robust outlet growth in China, Heytea has fallen behind rapidly expanding competitors.
Market leader Mixue has opened approximately 15,000 stores across the last 18 months to exceed 36,000 outlets, while bubble tea chain GoodMe, value-focused ChaPanda and healthy tea brand Auntea Jenny are all pursuing IPOs to build upon their respective 9,000, 7,900 and 7,600-store footprints.
Heytea also faces an uphill task to keep pace with ambitious Shanghai-based tea chain Chagee, which has opened 3,500 stores across the last 18 months to overtake the Shenzhen-based tea chain by outlets – operating more than 4,500 stores across China, Malaysia, Thailand and Singapore.