Faced with intense competition from Western F&B giants at home, Chinese food brands have ventured into Southeast Asia, where they are swiftly gaining market share through a winning combination of affordability, cultural ties, and tech-driven localization.
Chinese food and beverage chains are rapidly reshaping the culinary landscape across Southeast Asia, posing a strong challenge to long-dominant Western multinational giants.
According to the recent Chinese F&B in Southeast Asia 2025 report by Momentum Works, over 6,100 outlets from more than 60 Chinese F&B brands were operational in the region by the end of 2024. However, this success story goes beyond mere numbers—it unveils a deeper narrative of innovation, adaptability, and the transformative power of digitalization.
While South East Asia accounts for only 17% of China’s massive F&B market size, the region presents an appealing growth opportunity. Its geographical and cultural proximity, along with a relatively less competitive market environment, creates fertile ground for expansion.
The region’s tech-savvy middle class, vibrant Chinese diaspora, and robust economies further add to its allure. For instance, Singapore’s 63% ethnic Chinese population and Malaysia’s significant Chinese community offer a receptive customer base.
Social media platforms amplify this appeal, making Chinese F&B brands increasingly popular among younger audiences with trendy, accessible offerings.
What began as a survival strategy in their hyper-competitive domestic market has become a winning formula for Chinese brands as they aggressively target Southeast Asia’s $132.9 billion F&B market, which grew by 4.6% in 2024. Indonesia, Vietnam, Singapore, and Malaysia are emerging as key markets, with Vietnam and Indonesia hosting two-thirds of the region’s Chinese F&B outlets.
Back in China, the intensity of the rivalry with Western F&B giants forced many Chinese companies to innovate; in 2024 alone, over one million restaurants in China closed—70% more than the previous year. This challenging environment spurred operational refinements, supply chain efficiencies, and franchise innovations, all of which have become crucial advantages for their Southeast Asian ventures.
Among the standout players is Mixue, which has achieved cultural icon status with its affordable menu and low-cost franchise model. Vietnam is now its largest international market with over 1,000 outlets, while it operates an impressive 2,600 stores in Indonesia. Mixue has surpassed Western giants like Starbucks and McDonald’s in outlet count, signaling a shift in consumer preference toward affordable, locally adapted products. Social media buzz has further propelled Mixue’s meteoric rise.
ChaGee, another rising star, has experienced similar success in Malaysia. Since entering the market in 2019, the brand has opened around 100 outlets, with each store generating monthly revenues 1.5 to 2 times higher than its average in China. Premium players like Hey Tea and Nayuki are targeting affluent consumers with high-end milk tea offerings, while hotpot giant Haidilao and specialty chains like Fish With You are introducing interactive dining experiences and unique flavors to middle-class audiences.
Chinese brands are not only outpacing Western competitors but also setting benchmarks for local businesses in Southeast Asia. Their use of technology has revolutionized marketing, product development, and backend processes like procurement and supply chain management.
While tea drinking is a deeply rooted tradition in China, digitalization has introduced modern twists, enabling brands to seamlessly combine cultural authenticity with innovation.
For instance, Hey Tea has invested in cutting-edge technologies like smart scales, automated tea-making machines, and grape peelers, ensuring consistent quality and efficiency across its outlets in China and abroad. Such advancements highlight how technology is integral to maintaining operational excellence while scaling globally.
The rise of Chinese F&B brands in Southeast Asia underscores their adaptability and innovation. As they continue to grow, these brands are not only diversifying the region’s culinary landscape but also setting new standards in efficiency, affordability, and consumer engagement, cementing their place as formidable players in the global F&B industry.
