From Yunnan Roots to International Branches
Founded in 2017 by Zhang Junjie in Yunnan, China, Chagee embarked on a mission to modernize traditional tea culture. By integrating high-quality tea leaves with fresh milk and innovative brewing techniques, the brand crafted a unique “teaspresso” experience, resonating with younger consumers seeking both authenticity and novelty.
The company’s growth trajectory has been nothing short of remarkable. By the end of 2024, Chagee operated over 6,440 teahouses worldwide, marking an 83% increase from the previous year. While the majority of these outlets are in China, the brand has also established a significant presence in Southeast Asia, including Malaysia, Singapore, and Thailand.
Financial Infusion and Market Valuation
Chagee’s rapid expansion and innovative approach caught the attention of global investors. In April 2025, the company raised $411 million through its initial public offering (IPO) on the Nasdaq, pricing shares at $28 each. This IPO valued Chagee at approximately $6.2 billion, making it one of the most significant U.S. listings for a Chinese consumer company in recent years.
The financials underpinning this valuation are robust. In 2024, Chagee reported revenues of approximately $1.7 billion, with a net income of $344 million. These figures underscore the brand’s profitability and its strong position in the competitive beverage market.
Strategic Positioning and Brand Identity
Chagee distinguishes itself through a blend of tradition and modernity. Its branding, inspired by traditional Chinese opera and aesthetics, appeals to a sense of cultural pride and nostalgia. Simultaneously, the brand’s sleek store designs and emphasis on quality ingredients cater to contemporary tastes and sensibilities.
The company’s commitment to quality is evident in its product offerings. By focusing on fresh milk teas brewed from whole-leaf teas, Chagee positions itself as a premium alternative in a market saturated with sugary, artificial options. This strategy not only attracts health-conscious consumers but also justifies a higher price point, enhancing profit margins.
Global Aspirations and Future Outlook
With a solid foundation in Asia, Chagee has set its sights on global expansion. The company aims to serve customers across 100 countries and deliver 15 billion cups of tea annually. This ambitious goal reflects Chagee’s confidence in its brand and the growing global appetite for premium tea experiences.
However, the path forward is not without challenges. The company must navigate complex international markets, adapt to diverse consumer preferences, and contend with geopolitical tensions that could impact operations and supply chains. Nevertheless, Chagee’s innovative approach, strong financial performance, and clear brand identity position it well to overcome these hurdles and continue its upward trajectory.
Chagee’s journey from a single teahouse in Yunnan to a multi-billion-dollar global enterprise exemplifies the potential of blending tradition with innovation. As the company continues to expand and redefine tea culture worldwide, it stands as a testament to the enduring appeal of a well-crafted cup of tea.
