China’s brewing soft power in the US smells like coffee
In New York and Los Angeles, Gen Z is flocking to Mixue, Luckin and Heytea. Will the rest of America follow?
Chinese beverage chains are rapidly expanding their presence in the United States, particularly among Gen Z consumers, according to recent reports. In May 2025, there were no Luckin Coffee stores in the US, but now there are over 20 locations in Manhattan alone. The Chinese chains Mixue, Luckin, and Heytea have also opened numerous stores in New York City and other major cities across the country.
These chains, which specialize in tea and coffee, have differentiated themselves from established brands like Starbucks by leveraging technology for seamless ordering and retrieval, often without the need for human interaction.
While these Chinese beverage chains have made their mark in the US market, they still generate only a small fraction of their total revenue from the US. However, their potential for growth is significant, especially in areas with high concentrations of Chinese expats and young, adventurous Americans. Despite only 23% of Americans aged 13 to 74 having visited a tea or coffee chain originally from mainland China or Taiwan, Gen Z remains the largest customer base, with only 38% of them having tried these beverages.
The chains have capitalized on this trend by offering Instagram-worthy drinks at affordable prices, often attracting customers with unique flavors and eye-catching packaging.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
