It is common knowledge that China’s ice cream market is one of the world’s most competitive as players seek to differentiate themselves from others via multiple strategies from innovations in terms of textures and flavors, to product positioning highlighting on health and wellness claims.
Industry players are capitalising on urban Chinese consumers’ healthier lifestyles and sophisticated tastes to reshape this segment from what was once a seasonal indulgence to a year-round experiential category.
The ice cream market in China faces rising competition from fresh ice cream, milk tea, coffee and other fresh drink alternatives, while growth is increasingly being moderated by health-conscious consumers. Mintel forecast a humble annual growth rate of just 2.8% in sales from 2025 to 2029, with chocolate being the top flavor in the country.
As such, to reinvigorate the market, players are looking to align their strategies with consumer values around wellness, ingredients and emotional connections.
Leading player, Wall’s from Unilever has positioned itself on ‘premiumisation’ and ‘product varieties’ with more than 30 new products launched in 2025. Benny Xu, Chief Marketing Officer of The Magnum Ice Cream Company (part of Wall’s) said, “We’ve observed that Chinese consumers increasingly seek out layered textures and novel forms. Our Cornetto multilayer sticks – featuring the brand’s first-ever 7-layer ice cream – were developed in China and offer depth, crunch and a rich burst of flavor with every bite.” The company has also diversified from the bar format to frozen brownie cake/dessert format. It has also ventured into plant-based series by launching new fruit series for its Cornetto products.
Another domestic player, Adopt a Cow has emerged as a rising brand since entering this market in 2024, by launching more than 10 new products with clean-label positioning. Its products include Jing Mountain Matcha fresh milk ice cream, made from Hangzhou, Zhejiang province-grown matcha and the company’s own farm fresh milk, thereby ensuring food safety, traceability and transparency. It became a consumer sensation selling more than 140,000 units in a week on e-commerce platforms. Adopt a Cow also launched China’s first SGS-certified clean-label children’s ice cream with a 6-month shelf life. According to the company, healthy indulgence and emotional storytelling are the twin pillars of its innovation strategy.
As consumer expectations evolve, ice cream is no longer just about cooling off. It is also about comfort, self-expression and shared experiences. Ice cream manufacturers are also actively sponsoring sports tournaments like Nestle becoming the official sponsor for 2025 Jiangsu Football City League, thereby connecting itself (brand) with the youths.
According to Zhu Danpeng, a well-known food analyst in China, “I believe the winning strategy is to pinch the ends and leave the middle.” This means that low-end products are losing appeal due to health concerns, while ultra-premium offerings like Haagen-Dazs and Zhongxuegao are no longer aligned with the broader market needs of an affordable yet indulgent product. The sweet spot lies in the Rmb 5-8 (US$0.70-US$1.12) price range – affordable, high-quality products with strong value for money. Price might be an important attribute of success but it also depends on innovations revolving around health, clean label, flavors and textures.
