Source | "China Ice Cream" ID | zgbql1

By Tang Fei

It's March, the time when the entire ice cream industry is bustling with preparations for the new season. While my social media feed is flooded with new ice cream products promoted by enthusiastic distributors and channel partners, I've noticed a new trend: as shown in the image above, 1 yuan ice cream bars are appearing more frequently, and distributors are promoting them with increasing enthusiasm.

This Year, 1 Yuan Ice Cream Bars Are Being 'Noticed' by Distributors

Unilever's ice cream business has announced a detailed timeline for its spin-off, planning to go solo this year (2025). Chicecream's founder has faded from the spotlight after a series of trending topics like 'green train' and 'selling sweet potatoes.' Many Moutai ice cream stores have closed, and the brand is actively scaling back its ice cream business. Haagen-Dazs' parent company, General Mills, reported that in the second quarter of fiscal 2025, Haagen-Dazs store traffic in China continued to decline by double digits, with many stores closing nationwide. These events in recent years have made a deep impression on industry peers: price has a significant impact on everything from the sales of a single ice cream product to the development of the entire cold drink industry.

After the industry experienced incidents like 'ice cream刺客' (pricey ice cream), 'ice cream guards' (affordable options), and the push for clear price tags, consumers have become more sensitive and less tolerant of high prices in the ice cream category. It's clear that for manufacturers, distributors, retailers, and consumers alike, '1 yuan ice cream' has become a focal point across the entire cold drink supply chain. This topic is highly controversial, and every mention sparks lively discussion. To some extent, controversy means attention, which also means market demand.

In the past few years, the cold drink industry has focused heavily on mid-to-high-end products, and the voice of affordable, value-for-money products has faded. With the mainstream price range in the industry at 3-5 yuan, 1 yuan ice cream bars have become increasingly hard to find in retail stores.

During my frequent visits to large supermarket chains and convenience stores, I've noticed that while 3-5 yuan ice cream is the standard, there are also many products priced at 7-10 yuan or even higher. 1 yuan ice cream is rare or even absent. Naturally, the popularity of 1 yuan ice cream in these channels is correspondingly low. According to my research, although some distributors have recommended 1 yuan ice cream in the past, this year's numbers and efforts are significantly higher.

So, the question is: why have 1 yuan ice cream bars made a comeback in 2025? To answer this, I interviewed several cold drink industry experts, distributors, channel partners, and retailers from supermarkets, convenience stores, wholesale stores, and mom-and-pop shops, trying to analyze the reasons from their perspectives.

'Value-for-Money Era' and 'Scenario Stories'

First, the trend is driven by the times. As we all know, the cold drink industry has expanded rapidly in recent years, but behind the impressive growth numbers are the 'growing pains,' 'disorder,' and 'chaos': intense competition, price wars, tense manufacturer-distributor relationships, product quality issues, and declining industry reputation and consumer confidence. Facing these challenges, the industry is gradually 'waking up' to the value of consumption and returning to its essence as 'food for the mouth,' focusing on product quality and value.

At the same time, under the pressure of the overall economic environment, consumers are tightening their wallets and have higher expectations for every penny spent. They are not only scrutinizing ingredient lists and production dates but also comparing prices and quality across multiple dimensions. They are no longer fooled by flashy marketing, have moved beyond consumerism, and seek the true meaning of life and consumption. They expect either the same price with better quality or higher price with superior quality. These consumer demands have been met and proven at recent new product launches by various cold drink brands: in the context of the 'value-for-money era,' the price levels in the ice cream industry are visibly becoming more 'people-friendly.'

'The main consumption in the ice cream industry will shift toward essential and low-priced products. Looking at the new products launched by various ice cream brands in 2025, it's not hard to see that the 3-8 yuan price range is mainstream, and the value-for-money that consumers are calling for has become a slogan for major manufacturers,' a Shanxi-based ice cream distributor told me in a casual chat. 'When everyone is doing this (value-for-money) and consumers are very receptive, if you don't keep up, you'll either fall or struggle,' an ice cream industry consultant told me. Under such industry trends, the return of 1 yuan ice cream to the public eye doesn't seem surprising.

'What more do you expect for 1 yuan?' As this popular saying goes, the price of 1 yuan is persuasive at any time and place.

Second, the importance of consumption scenarios. As mentioned earlier, 1 yuan ice cream has disappeared from large supermarkets and convenience stores in first- and second-tier cities. This is due to factors like consumer demographics, channel profits, and scenarios. 'The consumption model in first- and second-tier cities is vastly different from that in lower-tier markets represented by counties. Consumers' price sensitivity, quality requirements, and appearance preferences all filter which ice cream products can enter different retail outlets,' a channel expert with years of experience in the cold drink industry told me.

'What brands do office workers buy? What ingredients do mothers look for? How much do elementary school students spend when they rush into the school gate store? Different needs lead to different product assortments. In our store, 1 yuan ice cream is the mainstay, with other price points as supplements. We even sell many at 0.5 yuan each, mainly because expensive ones don't sell,' a shop owner near a primary school in Chongqing sent me a voice message expressing a similar view.

Therefore, in representative consumption scenarios like lower-tier markets, school areas, and community wholesale stores, 1 yuan ice cream still has 'vast space' and loyal consumers. 'Consumers in lower-tier markets are not poor; they just seek a match between value and price. For example, in their eyes, ice cream should cost 0.5 or 1 yuan, or a big bag for over ten yuan. If you try to sell them a 10 yuan product, few will buy it, and even if they try it out of curiosity, they won't repurchase,' said Mr. Deng, who runs a small supermarket in a county town.

Game and Filter: Consumers and Channels

As the interviewees mentioned, the product assortment in various ice cream retail outlets is the result of a game between consumer demand and channel profits, with layers of filtering. 'The 'entry fee' for convenience stores is quite high: entry fees, barcode fees, display fees... The total is astonishing, and just the barcode fee can be 500-1000 yuan. That's why affordable ice cream basically doesn't appear in convenience stores, because their positioning is 'young people + high consumption,'' a distributor told me.

Therefore, the demand for 1 yuan ice cream is greater and broader than we might think. I've also noticed that many companies are focusing on the '1 yuan ice cream market' and thriving. Among them, Henan province, home to several companies with average prices of 1 yuan, seems worth mentioning. For example, Xuehui, which positions itself as 'Good 1 Yuan Ice Cream, Made by China Xuehui.' Since its founding 30 years ago, Xuehui has insisted on creating 'ice cream that ordinary people can afford,' earning a good reputation among consumers. In recent years, demand for Xuehui's products has continued to rise, and it is transitioning from a regional brand to a national one.

In Conclusion

A few days ago, I published an article titled 'Ice Cream Distributor: Here, Chicken Leg Ice Cream Has Dropped to 1 Yuan, What About Yours?' which attracted widespread attention and discussion. The mainstream price range for this popular product is 5-10 yuan, but prices have been driven down to 4, 3, or even 1 yuan. While this is a result of industry-wide homogenization and price wars, it also reflects the different needs of consumers in different markets and levels.

'China's market is indeed large enough that even if you can carve out 0.01% of the dividends, you can do well, but it's also highly competitive because too many people want to grab that 0.01%,' a consultant said at a forum. Where there is demand, there is a market. In the future, 1 yuan ice cream will inevitably see new breakthroughs and developments. What do you think?