On April 17, Chagee rang the opening bell on Nasdaq. The IPO was priced at USD 28 per share, raising USD 411 million and giving the company a valuation of USD 5.139 billion. While the world grapples with escalating U.S. tariffs and ongoing trade tensions, companies continue to pursue U.S. listings. Amid the standoff between China and the U.S. over tariffs, Chinese new-style tea brand Chagee proceeded with its IPO in the U.S. as planned.
As U.S.–China trade tensions continued to escalate and Trump's tariff threats grew more aggressive, a quiet counter-movement began taking shape among American Gen Z consumers.
In contrast to the confrontational stance of the Trump administration, young Americans started actively purchasing Chinese products from platforms like Taobao and DHgate. Under the hashtag #BuyChinese, they used consumption as a form of political expression and subtle rebellion.
By the end of 2024, a quiet shift in beverage preferences began to unfold on American streets.
Coffee—once a symbol of efficiency and elitism—was increasingly seen by some young Americans as “cheap,” “addictive,” and “anxiety-inducing.”
Meanwhile, tea-based drinks with Chinese cultural roots were rising in popularity, becoming a new lifestyle trend among younger consumers.
Amid this favorable climate, Chagee quietly made its Nasdaq debut under the ticker symbol CHA, marking its official entry into the U.S. market.
Tea is quietly filling the emotional gap left by coffee in the U.S. market.
In the winter of 2024, a subtle shift was brewing in America's street-level beverage scene.
Posts expressing coffee fatigue are surfacing across Reddit.
Source: Reddit
Once a symbol of elitism, efficiency, and the fast-paced urban lifestyle, coffee is now being rebranded by younger consumers with labels like “addictive,” “cheap,” and “anxiety-inducing.” Reddit has seen a surge in discussions about the side effects of espresso addiction. On TikTok, "quitting coffee diaries" are trending on the For You page, and one video under the hashtag #LessCoffeeMoreClarity has garnered 2.8 million views.
Meanwhile, tea—a beverage long overlooked by mainstream culture—is making a quiet return to the spotlight. Not herbal tea, and not the sugary canned varieties found in supermarkets, but a new interpretation of structured, functional tea: clean, energizing, and moderate. It’s no longer an aesthetic accessory, but a tool to counter life’s runaway tempo.
More importantly, tea is now being seen as a drink for the middle class."I used to drink coffee pre-workout because it’s low in sugar, but if tea is available, I’m actually happier with that—tea just feels more expensive," says Lindsay, a gym-goer in New York, sipping on a large cup of Chinese Da Wulong tea during the interview.
To her, tea represents gentle productivity—a rational alternative woven into daily life.
CEYLON BLACK MILK TEA on international platforms – official introduction Source: Chagee official website
Heyi, the founder of a local U.S. consumer brand, shared an example of Chagee’s bestselling product, Wanli Mulan. She believes the English translation should be “Mulan Charge.” This name stems from her research on Gen Z consumers' sensibilities in North America across several projects. “Mulan Charge” carries an air of Eastern cultural mystique while avoiding the negative connotations of "Strong" in “Strong tea,” which might deter consumers from trying it. The word “Charge” conveys a sense of “recharging” or “revitalization,” offering consumers a feeling of clarity without anxiety, aligning perfectly with the new demand for gentle self-discipline among younger consumers.
This shift is part of a quietly emerging fashion trend among U.S. Gen Z, a growing demand for mid-tier, stylish products.
At the same time, another seemingly unrelated trend is influencing consumer decisions. Amid rising U.S.–China trade tensions, American Gen Z is quietly engaging in reverse resistance behavior. Rather than voicing their opposition through words, they are expressing it through shopping—actively ordering from Taobao and Dunhuang.com, even unboxing and reviewing on Xiaohongshu (Little Red Book), in a gentle challenge to "government-style bans."
"Rather than saying they are supporting China, it’s more accurate to say they are opposing a life with limited choices." — Heyi, Founder of a U.S. Consumer Brand and Former Technology Product Manager in China
A subtle intersection of culture, politics, and emotion has emerged.
On one side, there’s growing fatigue with coffee, and on the other, a conscious shift toward Chinese brands. In this context, tea—a drink that’s “clear-headed but not ostentatious,” “Chinese but not dogmatic”—has quietly gained emotional relevance.
Although Chagee has yet to officially open a store in the U.S., its style and products have already been actively discussed, recognized, and consumed by North American consumers in various interview settings. This has paved the way for tea, an Eastern functional beverage, to become a gentle medium for emotional expression among young people in North America.
EqualOcean believes that Chinese tea brands are not merely selling milk tea; they are offering a clearer, more refined Eastern lifestyle. From “Less Coffee” to “Buy Chinese”, these aren’t two separate consumer movements, but rather a seamless shift in lifestyle logic. Chagee happens to be right at the entrance of this emerging path.
How can Chagee capitalize on this timely opportunity?
According to EqualOcean’s research, the strategy for the U.S. market should focus on three key steps: “Avoid pitfalls, seize positions, and establish roots.”
In March, Chagee officially announced that its first U.S. store will open at the Westfield Century City shopping center in Los Angeles. In 2024, EqualOcean analysts, after visiting cities like Los Angeles, Chicago, New York, and Seattle and conducting consumer interviews, found that: Although the U.S. tea market is highly competitive, it still lacks a true cultural ambassador with a deep Eastern cultural background and a long-term strategic vision.
Avoid Pitfalls: Hey Tea Took the Wrong Path
Let’s take a look at how Chagee's industry peers have approached the U.S. market.
In the U.S., Hey Tea almost directly replicated the strategy that led to its huge success in China. It set up stores in high-exposure landmarks like Beverly Hills and Times Square, using limited edition stickers, co-branded merchandise, and pop-up events to generate foot traffic. It even invited fitness influencer Pamela to endorse the brand, and utilized WeChat mini-programs for ordering.
Hey Tea Store in Beverly Hills
Source: Los Angeles Times
In the short term, this strategy seemed effective. On the opening day of Hey Tea’s Beverly Hills store, it was packed with people, and photos of long lines flooded social media, but the hype faded just as quickly. Negative consumer feedback emerged shortly after the store opened:
"I paid USD 15 for parking, stood in line for 3 hours in 40-degree heat, paid USD 6 for a milk tea, and had to scan a QR code that wouldn’t work? Crazy. It’s fine to try once, but I’ll never come back." — Jessica, a USC international student, first-time visitor to Hey Tea Beverly Hills
Currently, the store's hype has long faded, and most customers are Chinese nationals. But the root of the problem isn’t the product itself, but rather that the international expansion strategy overemphasized brand exposure while neglecting the true structure of the user journey.
EqualOcean’s research suggests that Hey Tea’s failure in the U.S. market offers three clear “red lines” for future Chinese tea brands:
First, don’t blindly trust landmark locations; consumer flow is the key to repeat purchases. Opening stores in high-traffic, brand-centric locations like New York's Times Square and Beverly Hills in Los Angeles superficially brings visibility, but the high time and financial costs required for consumers to visit once can't support repeat purchases. EqualOcean’s research found that stores reliant on high-exposure locations generally saw a sharp decline in foot traffic within the 4th-6th week after opening, with some even having to adjust their hours within two months.
Second, don’t apply Chinese consumer habits to North American users. In the early stages, Hey Tea kept WeChat mini-programs as the ordering system in U.S. stores. While this payment method is almost a standard in China, it’s a completely unfamiliar and high-barrier “closed ecosystem” for North American users. Local U.S. consumers often encountered issues like QR codes not loading, failed payments, or broken page redirects. Some even gave up trying to order altogether.
"My network is fine, but the page just won’t load. I have no idea how you’re supposed to order. Since it's a WeChat mini-program, locals can't even open it." — Feedback from a USC student who brought local friends to the store
The simple copy-paste of the Chinese payment logic alienated the brand from building a solid connection with local consumers during the crucial first impression stage.
Third, don’t mistake “long lines” for brand value. Stickers, blind boxes, and limited-time products brought strong social media attention in China, but in the North American context, these tactics were quickly recognized as "just marketing with no sincerity." Especially without continuous product innovation and daily accessibility, these one-off buzz events only intensified user frustration.
"The U.S. isn’t like China. Two hours in line, crowded, it’s fine to try once, but I’ll never come back again." — EqualOcean field visit feedback from Arcadia Street, Los Angeles
This wasn’t just a joke; it was the true feedback from users about the brand’s “form-over-substance” strategy.
Maybe we can summarize Hey Tea’s experience in the U.S. like this:
"Hey Tea isn’t without culture, but it tries too hard to push its own culture. It’s not lacking in design, but it forgot who would actually buy it."
For new brands seeking real user loyalty in the U.S., the most valuable resource isn’t marketing budget, nor speed of opening stores—it’s whether users are willing to come back for a second visit.
Grabbing the Position: Gen Z Has Waiting for Brands to Match Expectations
In EqualOcean’s recent North American market research, one signal has become increasingly clear: Young people are actively looking for alternatives that "move away from coffee, but don’t return to sugary drinks." The era of espresso that tugs on your nerves and sugary energy drinks is coming to an end. What they want isn’t a new flavor, but a "new daily routine" that can seamlessly fit into their lifestyle and match their personal rhythm.
"Less Coffee, More Clarity—it's not just a label, it's a physiological need in my daily life." — Zoe, 24, interviewed on the streets of Brooklyn, White Gen Z designer
As she said this, she was searching for "low caffeine tea latte" on her phone.
And in her hand wasn’t a limited edition item from some brand but a simple, lightly milked tea made with plant-based milk.
During our research in cities like Chicago and Los Angeles, we found that tea products from brands like The Coffee Bean & Tea Leaf have an exceptionally high repurchase rate among young Americans. These products have characteristics such as a gentle style, balanced flavor, and simple structure, qualities that Chinese tea beverages are well-positioned to offer.
MOLLYTEA's First Store in New York, USA
Source: Caixin News
For example, the Chinese brand "MOLLYTEA", which entered New York in April 2024, quickly swept the streets and alleys of Flushing with its floral-flavored teas.
Although this product is not one of the flagship offerings of Chagee in China, it has conveyed the idea in the US market that tea drinks are becoming a representative of "floral, fragrance, and nature" consumption.
If Chagee could coordinate with MOLLYTEA to introduce concepts such as "Calm Power" and "Empowered Clarity," it could elevate the tea category to the concept of "Tea Essence." This would help promote and implement the Chinese tea brand's strength in the US market.
Based on research experience and interviews, EqualOcean suggests that if Chagee establishes a localized product line in the US, it should focus on the following three "potential product categories":
"Plant-Based + Low-Burden" Reconstructing the Milk Tea Experience In North America, the "healthiness" of beverages is not an option but a default condition. From the widespread use of plant milks such as coconut and almond to labels such as "sugar-free," "low-sugar," "optional sugar," and even sections for "caffeine-free" and "vegan-friendly" beverages, American consumers are accustomed to switching between different "physiological configurations" when choosing drinks. If Chagee enters this market, it will need to do significant work on the formula side—not just replacing milk and base ingredients but also creating a localized labeling system and interactive menu language.
Yuan Yang Milk Tea: The Natural Grammar of Cross-Cultural Beverages In multiple interviews, we noticed that "Yuan Yang Milk Tea" is quietly becoming a bridge for young Americans to understand "Chinese-style beverages." They don’t view it as a cultural symbol but as a "more flavorful version of a latte" or a "softer alternative to espresso." This "structural blend of East and West" is perfectly poised to spark curiosity and experimentation among North American consumers, making it a typical "concept + daily" product category.
Sparkling Tea: Redefining "Party Drinks" Beyond Carbonated Beverages The North American beverage market has long been dominated by two types of "party drinks"—either alcohol or functional sparkling water. However, in Gen Z, there is a visible demand for "non-alcoholic + social" beverages. Sparkling tea products such as sparkling oolong, sparkling white tea, and cold-brew carbonated green tea are beginning to occupy a corner of the sub-menu at tea shops we've visited, and are gradually developing their own customer base. Compared to traditional sparkling water, these products offer more aroma and layers, making them easier to spark social conversations.
Heyi summarized this clearly: "Currently, these product directions are not part of Chagee’s existing SKU lineup, but they represent recurring resonances in our research. The real 'race for position' isn't about who acts the fastest but about who can align 'rhythm + state + health structure' on the same track."
Rooting: From One-time Visits to Emotional Necessities
Rather than competing for the most eye-catching exposure locations in the city, EqualOcean's research suggests that Chagee, in order to truly localize in the United States, should not continue with the "brand-first" approach but should instead embed itself into the users' daily life pathways.
In interviews with several founders of brands expanding overseas in the US, Heyi repeatedly emphasized:
"Opening near is more important than opening widely; having people come back for a second visit is more important than a crowded first visit."
What she proposes is not a simple operational slogan but a clear spatial strategy logic.
Taking Chagee's flagship store in Malaysia as an example, the brand retained a Chinese-style main theme but integrated modern minimalist elements to reduce cultural barriers, making it more acceptable to the local young consumers.
Chagee's future stores should not focus on clustering around Fifth Avenue or vying for the first spot in SoHo. Instead, they should root themselves in the real-life rhythm of everyday life — such as in the Chinese food street of San Gabriel in Los Angeles, the university cultural district of Hyde Park in Chicago, or the cycling rest stop on UW bookstore street in Seattle.
These locations may not be eye-catching, but they naturally possess three major advantages:
A high repurchase potential user base — primarily Asian, middle-class Gen Z consumers, with clear consumption motives and low cultural acceptance barriers.
A low-friction path that is easy to access — convenient parking, close to home, and reasonably priced.
Naturally social — having a cup of tea after meals, shopping, school, or gym, becomes a natural extension of everyday life.
Chagee's store design
Source: Chagee Official Website
In terms of space, Chagee advocates not for the "piling of cultural symbols," but for the re-creation of a "modern Oriental sensory space." This spatial syntax includes:
Raw wood as the base, celadon as the vessels, rice paper as the lamps, and silent music as the background.
Kung Fu tea demonstration tables, three-cup Gaiwan tasting stations, and transparent tea brewing counters.
Each drink is paired with a tea experience card, a scented coaster, and a cultural booklet titled Tea State of Mind.
“We don’t want people to remember who we are; we want them to feel like they’ve slowed down a beat after drinking that cup of tea.”
— A spatial experience consultant describing this "perceptible state design."
In this embedded logic, Chagee is no longer just "an Eastern milk tea brand," but has become a daily tool for Gen Z consumers to slow down, engage in self-reflection, and reconstruct their rhythm throughout the day.
True brand rooting quietly happens in this "second visit, no reason needed" path.
“American brands don’t succeed by talking about culture, but by making culture useful, drinkable, and fun.”
Culture needs to be integrated into the user’s daily life.
In EqualOcean’s view, Chagee’s real advantage is not in what culture it tells, but in its understanding that culture not only needs to be told but also needs to be felt, participated in, and taken away.
This is the brand structure that Gen Z needs: not education, but resonance; not check-ins, but repurchase; not heaviness, but "just the right" self-expression.
EqualOcean believes that Chagee’s content strategy in the U.S. is extremely restrained:
It hasn’t piled on national style or imported tea scriptures, but instead, it starts from the lifestyle and speaks about “Calm Power,” “Clarity after 3PM,” and “Slow Luxury.”
Pamela x HeyTea Collaboration
Source: Sohu
It should collaborate with fitness influencers and yoga instructors to embed tea drinks into the “self-disciplined lifestyle” standard configuration.
A #RealTeaChallenge can be launched, allowing users to document their first real tea experience.
A Secret Menu creative voting mechanism can be designed, allowing consumers to decide what the next tea should look like.
Street pop-up events can become cultural carriers — pop-up trucks, Peking opera costume changes, tea ceremony experiences… these are no longer symbols but part of user behavior itself.
“You don’t need to memorize an entire tea scripture; you just need to play well, take good photos, and post something interesting.”
With such a system of "culturally perceptible, productively experiential, and contentiously reusable" mechanisms, Chagee will open a new door to "Eastern life rhythms" for North American users.
It will not only be an innovation in beverage consumption but also a reshaping of daily life order.
This all happens in 2025 — a subtle yet tense era:
The coffee myth quietly collapses, and young people start looking for "clearer alternatives," reconstructing their relationship with themselves and reality through drinks.
Global political confrontations intensify, and Gen Z expresses a cultural identity reaffirmation through “Buy Chinese.”
Social communication shifts from “curiosity-driven check-ins” to “slow-paced, real daily life,” with choices beyond algorithms beginning to take root.
If Chagee can keenly capture the emotional tension and generational fracture of this generation, without noisy self-narration or cultural preachiness, it will transform “Bo Ya’s lost strings” into a “restrained, portable feeling,” and “Wan Li Mu Lan” into a “can be an everyday state.”
Chinese tea drinks will no longer need explanations, no longer rely on stories, but will naturally be embraced by the hands of young people in Flushing, New York, Hyde Park in Chicago, and San Gabriel in Los Angeles, being pointed out day after day.
When this cup of tea transitions from a “symbol of communication” to an “inertia of life,” the globalization of Chinese tea will no longer be a distant narrative but a cultural presence quietly permeating the gaps in everyday life.
Conclusion
At this node, a cup of tea becomes a lifestyle choice and a form of attitude expression. The future opportunity does not belong to those who shout the loudest, but to those who listen the most carefully.
Perhaps, we can summarize this seemingly gentle revolution as follows — it’s not that tea drinks have overtaken the coffee market, but that the "clearer lifestyle" has overtaken the "efficiency worship wrapped in anxiety."
And in this revolution, Chinese tea brands have, for the first time, been seriously recognized by North American mainstream consumers as providers of life logic.