Ice cream's sweet story of success

About 6.3 billion liters of ice cream will probably be consumed in the country in 2015. Last year, China took over from the United States as the world largest ice cream market, the Mintel report revealed. In 2014, 5.9 billion liters of ice cream were sold here compared to 5.8 billion liters in the United States.

Between 2008 and 2014, the total market value for ice cream sales in China nearly doubled to $11.4 billion, according to Mintel. The US market grew at a much slower rate, but still increased by 15 percent to $11.2 billion during the same period.

Last year, global sales of ice cream reached a record $50 billion, Mintel reported.

"Rising incomes are driving growth in the ice cream market in China," Alex Beckett, global food analyst at Mintel, said. "But the vast array of locally produced, low-priced brands present a challenge for global ice cream giants looking to develop here," he added.

One way to increase market share is to produce healthier products that are low, or sugar free, Mintel's Global New Products Database highlighted. In 2014, there were a record number of new ice cream brands that hit the market which were low on fat as well as gluten-free.

Of the 31,000 new products from 62 countries and regions that were rolled out, 15 percent were marketed on their "healthy option" claim compared to just 7 percent in 2012.

"Handcrafted ice cream, made with a homemade style authenticity, is more likely to be embraced by consumers," Beckett said.

Still, the largest ice cream brands in China are produced by Yili Industrial Group Co Ltd, based in Inner Mongolia, China Mengniu Dairy Co Ltd, Unilever Group and Nestle SA.

One local company, Dongbei Daban, has even played the nostalgia card to promote its ice cream. Dongbei uses 1980s style packaging to wrap the same simple shaped cones designed from that era. For older customers, this brings back memories of their childhood.

"Dongbei Daban tastes just like the ice cream my grandma bought for me when I was a child," Zhao Yun, 35, a photographer in Shanghai, who has dozens in his fridge, said.

Looking ahead, companies plan to roll out new products, including vegetable flavored ice cream for adults as well as cutting back on bulky packaging.

"Repositioning indulgent treats for older customers is one option," Esther Lau, research analyst from Mintel, said. "Making them healthier has also become a growing trend in China."