Innovation heats up China's ice cream market
Industry players including dairy giants and upstart digital brands are capitalising on evolving consumer preferences, healthier lifestyles and new retail formats to reshape what was once a seasonal indulgence into a year-round, experiential category.
According to Mintel Group, a market research institute, the packaged ice cream category in China is expected to maintain steady growth in the years ahead, buoyed by the development of cold-chain logistics, increased outdoor activities and the rapid development of e-commerce channels.
However, it faces rising pressure from fresh ice cream and on-premises tea drink alternatives, and growth is increasingly being moderated by health-conscious consumers. Mintel forecasts a compound annual growth rate of 2.8 per cent in sales from 2025 to 2029, with volume growing at 1.8 per cent annually.
The category is finding new ways to align with consumers' values around wellness, ingredients and emotional connections.
Leading the charge is Wall's China, under The Magnum Ice Cream Company, which has doubled down on premiumisation and product diversity. The brand rolled out over 30 new products in 2025, with a focus on personalisation, texture innovation and indulgent experiences.
'We've observed that Chinese consumers increasingly seek out layered textures and novel forms,' said Benny Xu, Asia CMO of The Magnum Ice Cream Company. 'Our Cornetto multilayer sticks — featuring the brand's first-ever seven-layer ice cream — were developed in China and offer depth, crunch and a rich burst of flavour with every bite.'
The company has also expanded beyond its classic chocolate bar format, launching its first frozen brownie cake dessert and the debut cone product under the Magnum brand in China.
Wall's China's aggressive innovation strategy also extends into marketing. In March, the brand partnered with Guangling ancient town of Yangzhou, Jiangsu province, to launch a cultural creative city intellectual property ice cream, selling from over 800 locations. 'We turned ice cream into an edible cultural business card,' said Xu, adding that it was a 'model case' of merging tourism, heritage and snacking.
To support this dynamic growth, Wall's China continues to invest in supply chain upgrades. Its facility in Taicang, Jiangsu province is the world's first 'lighthouse factory' in the global ice cream sector, which enables real-time production optimisation, energy efficiency and faster delivery — laying the foundation for personalised, sustainable ice cream experiences.
Having built a reputation for high-quality A2-type milk, domestic dairy player Adopt a Cow has quickly emerged as a contender in the ice cream arena. Since entering the category in March 2024, the company has launched over 10 new products, tapping into its vertically integrated supply chain and clean-label positioning to set itself apart.
Under the summer heat, Adopt a Cow's fresh milk-based offerings — including the Jing Mountain Matcha fresh milk ice cream — have seen explosive demand. The product, made from Hangzhou, Zhejiang province-grown matcha and the brand's own fresh milk, sold over 140,000 units in a week on e-commerce platforms.
As consumer expectations evolve, ice cream is no longer just about cooling off. It's also about comfort, self-expression and shared experiences. Nestlé's ice cream unit is actively responding to these new demands through an innovation strategy built on four pillars — authentic ingredients, dessert-inspired textures, premiumisation and fun.
The brand's offerings span traditional cones and sticks to novel forms like mini balls and rice dumplings. Its 'colourful personality box', launched in partnership with NetEase Cloud Music in April, aimed to engage Gen Z consumers around themes of identity and emotional resonance.
In its most recent initiative, Nestlé became the official ice cream sponsor for the 2025 Jiangsu Football City League, connecting with youth through a fast-growing cultural-sports event that blends competitive energy with city-level creativity. With its 8th power and heartfelt cone products, the brand positioned itself as the 'cooling force' amid the summer heat and football fervour.
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