There’s no shortage of milk tea brands these days — consumers are spoilt for choice. But this isn’t a saturated story yet. The market is still expanding fast, chasing coffee’s global dominance. Even cafés are still growing strongly.
Earlier this year, Mixue made a splash on the capital markets, with its share price more than doubling. That’s fair — it’s the largest milk tea chain in the world and market leadership commands a premium.
But Mixue isn’t the stock we’re talking about today. We think it’s priced right. The real opportunity is Chagee — a latecomer that’s growing faster, delivering better margins, and trading at a fraction of the valuation.
Premium vs. Value — Two Different Worlds
Mixue and Chagee might both sell milk tea, but their business models are worlds apart.
Mixue’s formula is simple — low prices, decent quality, unbeatable scale. Chagee goes the opposite way: premium positioning, premium pricing.
Even its cups are a statement. The design echoes Christian Dior’s “Toile de Jouy” motif — almost certainly intentional. It’s about association. Think of a successful career woman carrying a Dior bag in one hand and a Chagee cup in the other. Like an Apple device, it’s a lifestyle symbol, not just a product. Whether consumers have fully bought into that image is debatable, but the positioning is crystal clear.
Selling a Story
Chagee isn’t just selling drinks. It’s selling culture, heritage, and refinement.
