The ice cream market in China has witnessed steady growth over the past seven years. According to Chyxx, in 2021, the country’s ice cream industry was valued at 160 billion RMB, with a growth rate of 8.84%. Such market is expected to reach 40.19 USD by 2027.Along with the increasing demand, many ice cream-related businesses are emerging. In 2020, the number of new enterprises related to China’s ice cream industry was 3,492, and a year later, 2,798 more new companies entered this industry.

With the development of China’s economy and the widespread increase in disposable income, the ice cream market still has a lot of room for improvement. The forecast from Guanyan World Data Center shows that China’s ice cream industry will continue to grow, with a market size expected to reach 223 billion RMB in 2025. And the total profit of China’s ice cream industry from 2019 to 2025 will maintain a year-on-year growth rate of about 3%-6%.

Chinese ice cream consumers and their habits

1.The love for ice cream is on the rise

According to the insight of International Food Exhibition, 98.9% of Chinese consumers in 2022 enjoy eating ice cream, and most of them like eating ice cream in summer. The survey data also shows that 27.3% of Chinese consumers consume ice cream daily, and 37.8% spend on ice cream every 2 or 3 days. Although ice creams used to be seasonal snacks in China, more than 70% of consumers nowadays also purchase ice creams in winter, indicating the seasonal nature of ice creams has gradually weakened. Moreover, the endless variety of ice cream flavors on the market continues to attract consumers’ attention. Apart from offering a wide range of different flavors, nostalgia marketing and co-branding initiatives also fostered ice cream consumption in China.

2.Purchasing ice cream online

Chinese food buying habits are different from Western ones. In China, ice cream used to be something you enjoy on the spot due to the late development of a reliable cold chain. However, such a phenomenon is changing rapidly because of a dramatic rise in online shopping in China. Meanwhile, due to the impact of the Covid-19 pandemic along with the development of e-commerce and live streaming, Chinese consumers tend to shop more online despite the product category. In 2021, the proportion of online sales of ice cream in China reached 20%, an increase of 15 percentage points compared to the previous year.

3.Major players in the fierce competition

Chinese dairy giants Yili and Mengniu, boast a solid leading position in China’s ice cream industry. They are mentioned as the top two most purchased ice cream brands in China in 2022, followed by Qiaolez, a sub-brand belonging to Yili. Haagen-Dazs ranked fifth as the most popular foreign brand with the highest price among all other ice cream brands.

Product localization to cater to Chinese novelty-loving consumers

1.Less sugar and healthy ingredients

As Chinese consumers pay more attention to health, many ice cream brands work hard to eliminate the “unhealthy food” label. Ice creams made of natural ingredients containing less sugar and cholesterol and without dairy ingredients have become trendy. Almost every Chinese domestic brand like Bright Youbei, Yili Xujinhuan, and Zhong Xuegao has launched its sub-brands in line with such trend.

Along with the success of non-sugar added snacks in other food industries, such as zero-sugar coke and sugar-free cakes, no-sugar has become a new trend attracting Chinese consumers’ attention. According to iiMedia Research, nearly 80% of Chinese consumers are willing to purchase ice creams that contain no added sugar, and 39.3% said they are very excited to buy such products. Especially after the pandemic, as more and more people pay attention to their health and start to consume so-called healthy foods, natural and high quality ingredients with high nutritional levels have become the most determinant purchasing drivers other than the price for ice creams in China.

2.The importance of aesthetics in the ice cream market in China

In China, ice cream is no longer a snack to consume in hot summer but is becoming something to share with others and exchange emotions. Many ice cream companies keep putting effort into enhancing the design of the ice cream to attract Chinese consumers. Among all the different kinds of ice creams, designs with traditional aesthetics are the most popular ones. In March 2022, Chinese dairy giant Yili developed the “3D traditional fan ice cream” containing 3.8 times more protein milk with conventional patterns and poetic names to differentiate from its competitors.

If you would like to learn more about the food industry, please visit the SIAL China website for more information.
 

Source: Da Xue Consulting

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