Chinese Brands Surge in Southeast Asia, Expanding Cultural and Commercial Influence

In a significant shift in the regional food and beverage landscape, Chinese brands such as Mixue are rapidly gaining popularity across Southeast Asia.

This trend is not only expanding China’s commercial footprint but also deepening its cultural influence in neighboring economies.

The rise of Chinese food and beverage brands in Southeast Asia reflects a broader strategy by Chinese companies to seek new growth opportunities beyond their domestic market.

Faced with intense competition at home, these businesses are leveraging their efficiency, automation, and online marketing prowess to outpace Western competitors like Starbucks and McDonald’s.

Mixue’s Dominance: The Mixue Group has become the world’s largest food and beverage chain by number of outlets, surpassing Starbucks and McDonald’s. As of September, Mixue had over 45,000 stores globally, with about 40,000 located in China.

By December, Chinese F&B brands had opened over 6,100 outlets in Southeast Asia, with India and Vietnam accounting for roughly two-thirds of this growth.

Market Expansion: Mixue’s success is attributed to its affordable offerings, including ice cream, coffee, and bubble tea drinks. The brand’s popularity is evident in countries like Indonesia, where it has over 2,600 outlets.

Other notable Chinese brands gaining traction include hotpot giant Haidilao, Fish With You sauerkraut fish restaurants, and beverage brands like Luckin Coffee, Heytea, and Chagee.

Cultural Influence: The expansion of Chinese brands is not only commercial but also cultural. These brands are introducing Southeast Asian consumers to unique Chinese flavors and dining experiences, contributing to a broader cultural exchange between China and its neighbors.

The rapid growth of Chinese F&B brands in Southeast Asia has raised awareness about China’s diverse offerings beyond electronics.

Momentum Works CEO Jianggan Li noted that Chinese businesses are much more impatient than their Western counterparts, quickly adapting to local markets and leveraging automation and online marketing to enhance efficiency.

Mixue’s shares have doubled since its IPO debut in Hong Kong on March 3, reflecting investor confidence in the brand’s global expansion strategy.

The surge in Chinese F&B brands is expected to continue, driven by their ability to offer affordable, appealing products that resonate with local tastes.

As Chinese brands continue to gain ground in Southeast Asia, they are poised to reshape the region’s culinary landscape and further solidify China’s influence in the region.