Chinese F&B Brands Challenge Western Dominance in ASEAN
Chinese food and beverage brands are expanding aggressively in Southeast Asia. Companies like Mixue Group, Guming, and Chagee are challenging Western giants such as Starbucks and McDonald’s. Their rapid growth comes from low prices, fast expansion, and local adaptation.
Mixue, an ice cream and bubble tea chain, has become a global powerhouse. It operates over 45,000 outlets worldwide, with 2,600 stores in Indonesia alone. This makes it Indonesia’s largest F&B franchise. Other Chinese brands, including Luckin Coffee, are also gaining traction in the region.
Their biggest advantage is affordability. Mixue’s ice cream and drinks start at $1 per serving. These are significantly cheaper than Starbucks. This appeals to price-sensitive consumers in emerging economies like Vietnam, the Philippines, and Thailand. The company’s low-cost franchising model has also fueled rapid expansion.
Chinese brands adapt to local tastes
Unlike Western chains, Chinese brands prioritize digital marketing. They use TikTok influencers, viral campaigns, and celebrity endorsements to attract young customers. They also adapt products to local tastes. In Malaysia, pandan-flavored drinks are a hit, while in Indonesia, durian-based beverages are popular.
Their efficient operations and supply chain management allow them to scale quickly. By centralizing production and sourcing ingredients in bulk, they keep costs low. This enables them to undercut competitors while maintaining profitability.
However, challenges still remain. Local competitors, strict regulations, and changing consumer preferences could slow expansion. Western brands are also adapting by offering lower-priced items and region-specific flavors to defend their market share. Some Southeast Asian governments are tightening franchise regulations to prevent market saturation.
Despite these hurdles, Chinese F&B brands are reshaping the industry. Their affordable pricing, aggressive marketing, and rapid expansion strategies position them as major players in Southeast Asia’s food and beverage sector. Their success signals a new era of competition, where price and digital presence matter more than brand legacy.
