Mixue Ice Cream & Tea’s Low‑Cost, Vertically Integrated Model Fuels a Global Beverage Boom
Mixue Ice Cream & Tea – the brand known in Chinese as 蜜雪冰城 – has become a quiet but powerful force reshaping the ready‑made beverage market across China and into Southeast Asia. What began as a modest ice‑cream and tea shop in the early 2000s has, in less than two decades, grown into a global chain of more than 36,000 outlets, a footprint that now stretches from the bustling streets of Chengdu to the terminals of Hanoi’s airports. Its meteoric rise is owed to a blend of aggressive expansion, a “high‑quality, low‑price” philosophy and a supply‑chain model that rivals the efficiency of a tech start‑up.
17 August 2025
At the heart of Mixue’s success is a fully integrated, vertically‑controlled supply chain. The company runs its own central factories, producing everything from milk powder to tea bases under one roof. By owning the production process, Mixue can purchase raw materials at costs up to 10 percent below the industry average – a margin that translates into retail prices that hover around 6 RMB (under $1) for a standard cup. The low price point is not a gimmick; it is a deliberate strategy to capture the “10‑yuan‑and‑under” segment that dominates Chinese consumer spending on bubble tea and related drinks. In 2023, the chain topped 100 million yuan in sales, a figure that underscored the potency of its cost‑leadership model.
The brand’s expansion has been nothing short of relentless. In 2018 Mixue opened its first overseas store in Vietnam, marking the start of a Southeast Asian foray that has since seen the chain proliferate in markets ranging from Laos to the Philippines. By mid‑2024 the company was again on the headlines, slashing menu prices and issuing coupons to stay competitive in a market where rivals were also chasing the sub‑10‑yuan sweet spot. The price war continued into early 2025, with Mixue and other major tea‑drink brands jostling for market share while new entrants added fresh pressure. Yet Mixue’s franchise network has remained remarkably stable – a low closure rate and a steady stream of new partners suggest that the model is as attractive to investors as it is to consumers.
Mixue’s popularity is amplified by a savvy mix of pop‑culture marketing and a recognizable intellectual property. A simple, ear‑wormy theme song – “You love me, I love you, Mixue Bingcheng, sweetie‑sweetie!” – has been shared millions of times across platforms such as Bilibili, Douyin, Kuaishou and Weibo. The “Snow King” mascot (雪王) has become a household icon, appearing in everything from limited‑edition cup designs to viral TikTok‑style videos that showcase DIY drink hacks with the brand’s 1 RMB “snow‑king” ice cup. The combination of low‑cost product, catchy music and a friendly cartoon figure has turned Mixue into a cultural touchstone for a generation of frugal yet trend‑hungry consumers.
Beyond the balance sheet, Mixue is beginning to make a case for broader societal impact. The chain has invested heavily in biodegradable packaging, a move that aligns with a growing awareness of environmental footprints in the fast‑food and beverage sector. While the shift is still in its early stages, the company’s commitment to greener materials could set a benchmark for other domestic chains that have traditionally relied on cheap, single‑use plastics. Moreover, the sheer scale of Mixue’s operations has generated a cascade of jobs – from franchise owners and store staff to logistics workers and factory technicians – feeding into local economies and, in the eyes of Beijing’s policymakers, offering a home‑grown example of economic development and innovation.
However, the brand’s rapid ascent has not been without challenges. The market’s enthusiasm has spurred a wave of copycat enterprises that attempt to ride the coattails of Mixue’s name and visual identity. Variants such as “蜜雪冰橙” (Mixue Iced Orange) have popped up across social media, prompting consumer confusion and prompting the company to issue warnings about counterfeit stores. While Mixue has yet to launch a full‑scale legal campaign, the issue underscores the importance of brand protection in a market where intellectual‑property enforcement can be uneven. A handful of isolated quality complaints – notably a single report of a foreign object found in a drink – have also surfaced, but these incidents have not materially dented the brand’s overall reputation.
The brand’s next frontier may be its pending listing in Hong Kong. An initial public offering would provide fresh capital to fund further expansion, especially in non‑traditional venues such as airports, where Mixue’s low‑price model offers a stark contrast to the typically inflated airport food and beverage options. A recent pilot store at a major Chinese hub drew praise from travelers who appreciated being able to buy a cup of tea at the same price as a street‑side stall. If the IPO proceeds, Mixue could cement its status as a publicly‑traded champion of affordable indulgence, a narrative that dovetails neatly with China’s broader push for domestic champions that can compete on a global stage.
In sum, Mixue Ice Cream & Tea exemplifies how a disciplined supply‑chain strategy, combined with relentless market penetration and a dash of pop‑culture flair, can upend a crowded industry. Its low‑price, high‑quality proposition resonates with a consumer base that is increasingly rational about spending, while its sustainability initiatives hint at a longer‑term vision beyond profit. As the brand continues to navigate price wars, copycat challenges and the complexities of a public listing, it remains a barometer for the health of China’s fast‑moving consumer goods sector – and a reminder that sometimes the biggest disruptors are the ones that keep their prices as low as their ambitions are high.
