Heat treat: Fill your ice cups, sip leisurely, cool!

Amid a sweltering summer, China is witnessing a surge in people craving icy beverages, and along with that, a new trend — ice cups.

Simply put, an ice cup is a combination of edible ice cubes and a plastic cup into which consumers pour their favorite beverages and customize their own icy concoctions — a trend that has taken the country by storm.

In fact, a growing number of beverage makers such as Nongfu Spring and Pu Coffee are offering self-branded versions of these cups.

Priced between 3 yuan ($0.41) and 6 yuan depending on the cup's capacity, these frozen treats are attracting young consumers seeking a refreshing drink to beat the heat.

These icy delights are easily found in the frozen food and beverage section of convenience stores such as 7-11, Lawson and FamilyMart, as well as Chinese grocery chain Freshippo.

"The decision to opt for ice cups became clear when I did the math," said Miao Yunlei, a 29-year-old who works for an internet company in Beijing.

A trip to the convenience store can provide him with a can of cola and an ice cup for just 7 yuan. In contrast, a single cup of iced cola at a popular fast-food chain like McDonald's would cost 10 yuan, Miao said, explaining why ice cups are a cost-effective alternative.

Bilita, an edible ice manufacturer located in Guangzhou, Guangdong province, has experienced a significant surge in annual sales of ice cups, with the sales volume skyrocketing from 1 to 2 million cups before 2022 to 50 million cups in 2023.

The allure of ice cups goes beyond their pocket-friendly prices.

As living standards continue to improve, demand for beverages has transcended thirst-quenching to evolve into a quest for diverse and personalized taste experiences.

The popularity of ice cups aligns closely with this evolving consumer demand, offering a refreshing and customizable option that caters to individual preferences, said Jiang Han, a senior researcher at the Beijing-based think tank Pangoal Institution.

According to a report compiled by consultancy Oliver Wyman and e-commerce platform Meituan in April last year, over 40 percent of consumers in the country expressed a strong desire to be served alcoholic beverages, soft drinks or dairy products in a chilled state.

By 2026, the retail sales volume of frozen treats is expected to experience a fourfold increase, with the market size potentially surpassing 63 billion yuan.

As consumers seek more diverse and exciting beverage experiences, retailers and supermarkets are responding by offering an array of innovative flavors and presentations of ice cups. A range of new options, including lemon juice, grape juice, passion fruit juice and coffee, are served in small ice ball-shaped cups.

As competition intensifies, ice cup products are constantly evolving, in not only exquisite and unique formats but also in a wide range of functionalities. Moreover, the role of social media in driving this trend cannot be overlooked, said Bai Wenxi, chief economist at IPG China.

Social media platforms including Xiaohongshu are flooded with posts showing ice cup discoveries and innovative flavor combinations. Consumers, particularly the younger demographic, share their unique creations, ranging from classic soda mixes to daring fruit-infused fusions.

The ice cup industry has taken off in recent times, attracting the attention of an increasing number of businesses eager to grab a share of the market. With the entry of prominent players like Nongfu Spring, existing ice cup brands are set to face fiercer competition, experts said.

A search volume for keywords related to edible ice manufacturing plants reached 4,168 on database query platform TianYanCha.com as of mid-July.

Some 490 new companies have been established in this sector in the past three years, with an astonishing 144 of these being less than a year old.

Ice cup prices are trending downward as competition in the market heats up. Last year, the factory price for Bilita's products stood at 3 yuan per cup, said Si Dajin, general manager of the company.

However, this year, the prices have been slashed by almost half, with the current lowest price reaching 1.5 yuan per cup. With more companies entering the market, the factory prices of ice cups may further decrease to 1 yuan per cup, Si added.