Recently, discussions about affordable alternatives to mid-to-high-end ice cream have surged on social media. Comments like "Jinshuiyuan's raw chocolate is a true dupe for Zhong Xue Gao, in terms of price, taste, and calories," "Under 5 yuan, yet more impressive than a 25-yuan ice cream!" and "An ice cream disguised as an assassin, but actually a bodhisattva repaying kindness!" have sparked questions about the ice cream market: Is mid-to-high-end ice cream losing its appeal? Are affordable ice creams becoming the new protagonists?
2023, 'Ice Cream Bodhisattva' Takes Center Stage
This year, many neighborhoods have seen new cold drink wholesale stores, adding coolness and joy to summer. For instance, a new store near the author's home boasts signs like "Wholesale from one stick" and "Cold drink wholesale, truly cheap," with many nostalgic ice creams like Libaitian Fang糕 and Aoxue Big Ice Bucket. Amid economic fluctuations, these affordable ice cream wholesale stores are highly attractive, and even in early autumn, business remains brisk.
Image source: Abby's photo
'Ice Cream Bodhisattva' is also a hot topic on social media. On Xiaohongshu, topics like 'ice cream bodhisattva,' 'affordable ice cream,' 'childhood ice cream,' and 'ice cream dupes' have garnered over 200 million views across Douyin, Xiaohongshu, and Weibo. On Bilibili, many popular videos related to 'ice cream bodhisattva' frequently feature keywords like 'internet-famous,' 'no trans fats,' and 'dupes.' As the trend gains momentum, consumers are discovering that many affordable ice creams are just as good as expensive ones. For example, Yili's Little Pudding ice cream, with 85 calories per stick and no trans fatty acids, has become a summer favorite for its creamy appearance and soft, chewy texture.
Image source: Xiaohongshu screenshot
Last year, 'ice cream assassins' drew consumer backlash due to high prices and lack of price tags. This year, the situation is different: merchants generally display prices clearly, and some wholesale stores even advertise that they have no 'ice cream assassins,' with every stick priced affordably. According to FoodTalks' July 2023 top 50 best-selling ice cream lists for East, South, Central, and North China, only two 10-yuan ice creams made the top ten in East China; the rest were 5 yuan or below. Industry media interviews reveal that ice cream wholesalers report prices this year ranging from 1 to 5 yuan, with high-priced ice cream not selling well, leading to clearance sales and discounts. Some distributors say high-priced ice cream is hard to sell, and even manufacturers who insisted on full price last year have relaxed their stance to boost sales. Clearly, in 2023, consumer demand for ice cream has returned to simplicity and essence: good quality and low price. The 'ice cream bodhisattva' has taken center stage.
Shift in Ice Cream Market Trends:
Is Mid-to-High-End Ice Cream Losing Its Appeal?
The near disappearance of 'ice cream assassins' this year has also influenced the mid-to-high-end trend. Let's first look at the 2022 market situation. The 'China Ice Cream Industry Trend Report' shows that in 2022, China's ice cream industry was moving towards quality, especially in the mid-to-high-end segment. In our view, 'ice cream assassins' differ from mid-to-high-end ice cream: the former is more about price, while the latter refers to the premium quality experience from brand, product, to service. Today, China's ice cream market is split between local and international brands. On one hand, as the market moves upmarket, foreign brands like Walls, Nestlé, Başyi, and Häagen-Dazs are joined by more traditional Chinese ice cream companies entering the mid-to-high-end fray, with local brands actively expanding.
Image source: '2022 China Ice Cream Industry Trend Report'
For example, Yili has mid-to-high-end brand Zhenxi and guochao brand Xujinhuan; Mengniu has premium brand Dilan Shengxue and collaborates with Moutai Ice Cream; Northeast Big Board has also pushed its mid-to-high-end process through co-branding with new brands like Meiri Heiqiao and Yongpu, and placing standalone freezers offline.
Image source: Xiaohongshu @Northeast Big Board
On the other hand, the rise of domestic mid-to-high-end new ice cream brands has further advanced the upmarket trend. They mainly fall into four categories:
- New Chinese-style ice creams like Zhong Xue Gao and Zhongjie 1946, which once impressed consumers with Chinese-style design and eco-friendly concepts.
- Alcohol-infused ice creams like Moutai and獭祭, leveraging their liquor brands' market presence.
- Brands from boutique ice cream and bakery offline stores, such as Luneurs and Gracie's.
- Brands targeting niche segments, like Kemicool, which focuses on sugar-free ice cream for health, and Beibeiping, which targets cultural creative ice cream.
Image source: Xiaohongshu @Zhong Xue Gao, @Libaitian Food, @Luneurs
In 2023, the ice cream market has seen changes, mainly in two aspects:
1. Cold drink wholesale stores and snack discount stores are thriving as offline channels
The aftermath of the 'ice cream assassin' incident, coupled with economic fluctuations, has given cold drink wholesale stores a resurgence this year, with intense competition. Additionally, many affordable ice creams have appeared in the booming snack hard discount store format.
Image source: Xiaohongshu @Snacks Are Busy
These provide consumers with diverse channels to buy delicious and cheap ice cream offline, satisfying both the desire for value and the need for in-store selection experience.
2. Mid-to-high-end ice cream brands are becoming more affordable and going downmarket
Under the trend towards affordable ice cream, mid-to-high-end brands are also launching relatively low-priced products and seeing initial success in downmarket channels. Zhong Xue Gao previously launched sub-brand Li Daju, and this year introduced its second low-priced product—Sa'Saa at 3.5 yuan per stick—mainly for distributor channels, improving its product portfolio.
Image source: Xiaohongshu @Zhong Xue Gao
On July 29, Moutai collaborated with Zhongjie 1946 to launch 'Xiao Qiao Zhi' at a low price of 29 yuan. Compared to previous products around 66 yuan, this is the brand's first product under 30 yuan, aiming to attract young consumers to try Moutai's 'true taste' through this small bite.
Image source: Weibo @Xiaomao i Moutai
Additionally, mid-to-high-end brands like Zhong Xue Gao, Başyi, Zhenxi, and Magnum have appeared in wholesale and snack discount stores. For example, since aggressively entering offline channels in 2020, Zhong Xue Gao has placed its signature tile-shaped ice cream in nearly 400,000 terminal freezers across over 200 cities in just over two years, including downmarket channels from supermarkets to family wholesale stores.[1]
The Core of Ice Cream Consumption:
Not Price, but Value
From the rise of mid-to-high-end ice cream last year to the shift towards affordable options this year, it seems consumers are dissatisfied with high prices. In reality, regardless of market conditions—whether downturn or rapid growth—there is an unchanging factor: consumers constantly seek products and experiences that offer great value for money. Specifically for the ice cream market, there are two main reasons:
1. Ice Cream Category: Consumers Care About Novelty and Emotional Value
According to iiMedia Research, 86.2% of Chinese consumers consider taste the primary factor when buying ice cream, and 60.2% have a positive attitude towards new flavors, saying they would 'try them immediately.' The 'China Ice Cream Industry Trend Report' also notes that the core consumer group is aged 13-29, who are more interested in the style, culture, and brand value attached to products than price. Ice cream is no longer just a substitute for cold drinks but a pleasure and social food that brings happiness. This shows that ice cream consumers care more about the experience from novelty and emotional value than price. Therefore, regarding this year's hot sales of affordable ice cream, brands should think independently: Are consumers really losing interest in high-priced ice cream? Is their love for affordable ice cream just a passing fancy? Consumers' love for wholesale ice cream may not be about the low price per se, but rather that after trying some 'ice cream assassins' and finding them not so 'amazing,' they miss the 'ice cream bodhisattvas' that offer good quality, nice appearance, and nostalgic value.
Image source: Xiaohongshu @Libaitian Food
As ice cream prices return to rationality, brands need to price sensibly and avoid inflated prices, or even new products may deter consumers. They should not blindly seek cheapness or discount promotions, as this can lead to meaningless price wars and hinder product innovation, making consumers 'tired.'
2. What Disappoints Consumers Is Not High-Priced Ice Cream, but Low-Value Ice Cream
High-priced ice creams have also won the love of young consumers through brand stories and creative ads. For example, Zhong Xue Gao's product copy has a Chinese aesthetic, which laid the foundation for its success in new Chinese-style ice cream. Its autumn-limited Golden Osmanthus Red Bean ice cream was promoted with the viral ad 'This Year's Osmanthus Bloomed Late,' told from the perspective of a 9-year-old girl from Lingui, Guangxi, conveying that some waits are worthwhile, and implying the product uses fresh seasonal osmanthus. The ad helped sell out all 27,000 Golden Osmanthus Red Bean ice creams within 18 days of launch. Undeniably, high prices can create high value for consumers, including both product value and added value.
Image source: Xiaohongshu @Zhong Xue Gao
However, selling at high prices does not guarantee that product quality and brand affinity always match. There is still a long way to go from being an internet-famous brand to a long-lasting one. High-priced ice creams have been questioned before. Multiple media reports noted that in 2021, Walls' Magnum was criticized for 'double standards' in ingredients, using milk abroad but vegetable oil in China. Magnum responded, but it sparked further discussion. Later, Unilever, Magnum's parent company, added that the ingredients differ because national standards vary, which is reflected in labeling. What 'ignited' consumer emotions was the vague response and brand attitude, as well as dissatisfaction with the mismatch between quality and price, not just the pricing itself.[2]
Image source: Xiaohongshu @Magnum
In the long run, if consumers spend more but do not receive higher quality products and services than expected, it can lead to a collapse.[3] This means brands must solidly build products, brands, and reputation, delivering products and services that exceed expectations.
Conclusion
As young consumers' awareness evolves, ice cream has expanded from basic cooling relief to an add-on that satisfies emotional, social, and cultural needs. From this perspective, the path towards mid-to-high-end ice cream—providing high-quality products and services—is inevitable and necessary.[4] This year, did the 'ice cream bodhisattva' defeat the 'ice cream assassin'? Whether affordable or mid-to-high-end, the high attention they receive is somewhat short-term, driven by economic fluctuations and consumer emotional spending. The competition in the ice cream market is superficial; consumer demand is the decisive factor. Consumers constantly choose and consume ice cream based on their varying needs. Whether mid-to-high-end or affordable, brands need to focus more on the essence when launching new products, ensuring they truly match consumer needs, and adjust promptly to stand firm in the fiercely competitive ice cream market.
References: [1] Cao Mohan, 'Zhong Xue Gao, Is Downmarket a 'Original Sin'?', July 12, 2022, Daily People [2] Li Qinglin, 'Magnum's 'Double Standards' for Chinese Consumers: Where Exactly Is the Problem?', August 3, 2021, China Ice Cream [3] Jing Min, 'Is Expensiveness Zhong Xue Gao's Original Sin?', July 7, 2022, Daofa Research Institute [4] Wang Pingping, 'From Regional to National: These Brands Accelerate High-Endization through Innovation and Upgrades!', October 2022, China Ice Cream