Thai Tea Giant ChaTraMue Eyes Global Expansion Despite Economic Headwinds

Thailand's dominant tea chain ChaTraMue has unveiled an ambitious three-pronged strategy to establish itself as a global brand, marking its 80th anniversary with plans to expand into four new countries despite acknowledging economic pressures affecting some domestic outlets.

The company, which claims a commanding 70% market share in Thailand's tea sector, announced on Thursday it would pursue market expansion, product innovation, and brand collaborations to strengthen its international footprint.

Managing Director Praonarin Ruangritthidech told a press conference the firm currently exports to 21 countries and operates 114 international branches across 11 markets, including the United States, Singapore, South Korea, China, and several Southeast Asian nations.

The company aims to add Canada, Laos, Mexico, and Indonesia to its international portfolio this year, targeting 130 overseas outlets by year-end. However, the expansion comes as ChaTraMue grapples with domestic challenges. 

Praonarin acknowledged that current economic conditions and declining tourist numbers have dampened sales at some branches, though she expressed confidence the company would still achieve its 20% growth target for 2025.

The international push relies heavily on franchising partnerships with local operators—a marked contrast to the company's domestic strategy of operating company-owned stores.

"We don't have expertise in foreign markets, so opening branches internationally focuses on partnering with local partners," Praonarin explained, highlighting the firm's cautious approach to unfamiliar territories.
 

ChaTraMue's product development strategy includes launching what it calls "colourless Thai tea" in July, "natural-coloured Thai tea" in the third quarter, and a sparkling Thai tea kombucha targeting health-conscious consumers.

The company has also identified opportunities in the growing home-brewing market with ready-to-brew products.

The collaboration strategy has seen partnerships with diverse brands including bird's nest producer Brands, Universal Music, ice cream maker Cremo, Japanese sushi chain Sushiro, and Korean fashion brand Sculptor.

These tie-ups represent an attempt to extend the Thai tea brand beyond traditional beverage categories.

ChaTraMue has built a vertically integrated operation spanning tea cultivation in northern Thailand, its own production facility in Chiang Rai's Wiang Pa Pao district, and retail distribution through 220 domestic outlets—which it plans to expand to 250 by year-end.

The company offers 50 different products across modern trade, traditional retail, e-commerce, and its branded shops.
 

The firm has invested in factory expansion to meet growing demand whilst implementing environmental measures including natural gas and solar power in production, biodegradable straws, and reusable containers.

Founded as one of the pioneers in developing Thailand's signature iced milk tea adapted for the country's tropical climate, ChaTraMue claims credit for transforming Thai tea from street food to shopping mall staple and promoting it internationally as a form of soft power.

The company's ambitious growth targets will test whether its domestic success can translate globally in an increasingly competitive international tea market, particularly as economic uncertainties continue to affect consumer spending patterns.