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ICE CREAM AND DESSERT SHOPS - CHINA - APRIL 2018

Published By :

Mintel

Published Date : Apr 2018

Category :

Ice Cream

No. of Pages : N/A

China’s ice cream and dessert shop market has enjoyed robust growth in the last five years, helped by the growth of new and more specialised brands; however, there’s still room for more niche products, such as frozen yogurt. As consumers are craving unique and fun experiences, exploring interactive experiences, such as DIY experiences, can help brands to engage with consumers.

Table of contents

OVERVIEW
What you need to know
Covered in this Report
Definitions
Figure 1: Definition of low/mid/high MHI groups, by city tier
EXECUTIVE SUMMARY
The market
Figure 2: Best- and worst-case forecast for sales value of ice cream and dessert shop market, China, 2012-22
Competition and innovation
Some big brands’ glory days are over
Competitive strategies
Noteworthy Innovations
The consumer
High earners and tier one residents are core users of ice cream and dessert shops
Figure 3: Visiting frequency, November 2017
Indulgence-related rather than functional reasons are key drivers to visit
Figure 4: Visiting occasions, November 2017
Not as good as coffee houses as a third space
Figure 5: Choice factors, comparison with coffee houses, November 2017 and August 2016
Unique flavours/texture and better ingredients drive premiumisation
Figure 6: Premium factors, November 2017
Opportunity in frozen yogurt
Figure 7: Interest in and penetration of offerings from ice cream shops, November 2017
Popular flavours in other categories wanted in ice cream as well
Figure 8: Interest in innovative ice cream flavours, by consumer groups, November 2017
What we think
ISSUES AND INSIGHTS
DIY experiences can help brands to engage with consumers
The facts
The implications
Figure 9: Process of making Mermaid coffee, DNA café, Shanghai, 2017
Inspiration from other food and drink categories offer a route to drive standout
The facts
The implications
Opportunity for niche desserts/ice creams in the category
The facts
The implications
Figure 10: Jellied desserts, Japan
Figure 11: ‘Tears’ and ‘Ambiguity’ ice cream, Initial, Shanghai, 2017
THE MARKET – WHAT YOU NEED TO KNOW
A double-digit growth in the last five years
Craving for indulgence and afternoon tea experience driving market growth
Ice cream shops are a smaller but faster growing category than dessert shops
MARKET SIZE AND FORECAST
A double-digit growth in the last five years
Figure 12: Sales value of ice cream and dessert shop market, China, 2012-17
Ice cream and dessert shops outperform the coffee house market
Figure 13: Year-on-year value growth of ice cream and dessert shop market and coffee house market, China, 2013-17
Continued robust growth forecast in the next five years
Figure 14: Best- and worst-case forecast for sales value of ice cream and dessert shop market, China, 2012-22
MARKET FACTORS
Indulgence as a ‘healing’ aid
Figure 15: Posts of ice creams and desserts as a ‘healing aid’, Red, 2018
Afternoon tea as part of a lifestyle
An increasing craze for internet famous stores
Figure 16: People lining up for WIFY (left, 2017) and Lady M (right, 2018), Shanghai
Simple and focused menus are on the rise
MARKET SEGMENTATION
Ice cream shops: a smaller but faster growing market
Figure 17: Best- and worst-case forecast for sales value of ice cream shop market, China, 2012-22
Dessert shops: new dessert categories driving growth
Figure 18: Best- and worst-case forecast for sales value of dessert shop market, China, 2012-22
KEY PLAYERS – WHAT YOU NEED TO KNOW
Some big brands’ glory days are over
Exploring new occasions
Innovating with flavours, presentation and ingredients
Noteworthy innovations
MARKET SHARE
Although still in the lead, some big brands are losing significance
Figure 19: Leading brands in ice cream and dessert shop market, by number of stores, China, 2017
Newcomers from adjacent categories command attention
Smaller chains and independent shops growing their presence
COMPETITIVE STRATEGIES
More diversified channels to market
Creative flavours, presentation and names aim to drive purchase
Flavour
Presentation
Figure 20: Examples of creative presentations of ice cream and dessert shop offerings, China, 2017
Name
Figure 21: ‘Tears’ and ‘Ambiguity’ ice cream, Initial, Shanghai, 2017
Ingredients and craftsmanship as premium justification
Ice cream shops: battling with seasonality
Figure 22: Posters of ice cream suited for the winter season, Zhongjie 1946, 2018
WHO’S INNOVATING?
Texture innovation in China
Figure 23: Examples of texture innovation in ice cream shop offerings, China, 2017
Figure 24: Examples of texture innovation in dessert shop offerings, China, 2017
Global innovations
Ice cream that does not melt, Japan
Dessert that tells a story, Japan
Figure 25: Dessert that tells a story, Japan, 2017
Augmented dessert, Switzerland
Figure 26: Augmented dessert, Switzerland, 2017
Pop-up museum of ice cream, US
Figure 27: Pop-up museum of ice cream, USA, 2016 & 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
High earners and tier one residents are core users of ice cream and dessert shops
Emotional more than functional consumptions
New tastes and better ingredients drive premiumisation
Opportunity in frozen yogurt
VISITING FREQUENCY
Ice cream shops less popular than dessert shops, while Chinese and Western dessert shops go toe to toe
Figure 28: Frequency of visiting ice cream and dessert shops, November 2017
High earners and tier one residents
Room to grow in lower tier cities
Figure 29: Frequency of visiting ice cream and dessert shops, by city tier, November 2017
VISITING OCCASIONS
Indulgence-related rather than functional reasons are key drivers to visit
Figure 30: Occasions for visiting ice cream and dessert shops, November 2017
Ice cream shops more associated with high quality
CHOICE FACTORS
Experiences drive choice of venue
Taste enjoys a strong lead
Limited interest in delivery
Figure 31: Choice factors, November 2017
Comparison with coffee houses
Figure 32: Choice factors, comparison of ice cream and dessert shops with coffee houses, November 2017 and August 2016
Young consumers even more experience-driven
Figure 33: Selected choice factors, by age, November 2017
PREMIUM FACTORS
New tastes and better ingredients drive premiumisation
Figure 34: Premium factors, November 2017
Young consumers drawn more to new sensorial experiences
Figure 35: Selected premium factors, by age, November 2017
High earners drawn more to ingredients and customisation
Figure 36: Selected premium factors, by income level, November 2017
INTEREST IN OFFERINGS FROM ICE CREAM SHOPS
Opportunity in frozen yogurt
Figure 37: Interest in and usage of product types from ice cream shops, November 2017
Drinks can be an important addition to the ice cream shop menu
Figure 38: Interest in offerings from ice cream shops, November 2017
Young women show most interest in all kinds of ice cream, especially ice cream cakes
Figure 39: Interest in selected offerings from ice cream shops, by young women, November 2017
INTEREST IN INNOVATIVE ICE CREAM FLAVOURS
Rising popular flavours in other categories wanted in ice cream as well
Figure 40: Interest in innovative ice cream flavours, November 2017
Figure 41: Sea salt flavoured ice cream and yogurt examples, China
Uncommon flavours spark niche interest, even among those seeking unique flavours
Figure 42: Interest in innovative ice cream flavours, by interest in unique flavours/textures, November 2017
Guangzhou stands out for interest in new flavours
MEET THE MINTROPOLITANS
Prefer a wide variety of choices
Figure 43: Selected choice factors, by consumer classification, November 2017
Value ingredients, customisation and brand
Figure 44: Selected premium factors, which would encourage consumers to pay more for on-trade ice cream or desserts, by consumer classification, November 2017
APPENDIX – MARKET SIZE AND FORECAST
Figure 45: Best- and worst-case forecast for number of stores of ice cream and dessert shop market, China, 2012-22
Figure 46: Value sales of ice cream and dessert shop market, China, 2012-22
Figure 47: Number of stores of ice cream and dessert shop market, China, 2012-22
APPENDIX – MARKET SEGMENTATION
Figure 48: Best- and worst-case forecast for number of stores in ice cream shop market, China, 2012-22
Figure 49: Best- and worst-case forecast for number of stores in dessert shop market, China, 2012-22
Figure 50: Sales value of ice cream and dessert shop market, by market segment, China, 2012-22
Figure 51: Number of stores of ice cream and dessert shop market, by market segments, China, 2012-22
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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