Ice Cream - China - June 2015

INTRODUCTION
In this report we answer the key questions:
Definition
Methodology
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Retail market value of ice cream in China, 2010-20
Companies and brands
Figure 2: Value share of China’s ice cream retail market, by company, 2013 and 2014
Who’s innovating?
Mixed flavour and extra toppings add sensory experience
Vegetable-inspired holds the key for the health conscious
The consumer
Soft-serve ice cream offered by on-trade channels remains the most popular format in China
Figure 3: Usage of different types of ice cream products in the last 6 months, April 2015
Scope to boost the appeal of packaged ice cream by harnessing the healthy connotation of natural ingredients
Figure 4: Elements associated with different types of ice cream products, April 2015
Adventurous behaviour can spark more unusual flavours in the Chinese market
Figure 5: Attitudes towards ice cream products, April 2015
Dessert and coffee inspired ice cream are the hottest flavours
Figure 6: Interest in innovative ice cream flavours, April 2015
Sensory experience is key
Figure 7: Elements contributing to creating the ideal ice cream product, April 2015
Over 70% of respondents eat ice cream when relaxing
Figure 8: Occasions for eating ice cream in the last 6 months, April 2015
What we think
ISSUES AND INSIGHTS
Artisanal ice cream chains drive the growth of premium packaged products
The facts
The implications
In line with the global trend, healthy is king
The facts
The implications
From simplicity back to complexity
The facts
The implications
Embracing in-home usage – Snacks for women and kids
The facts
The implications
TREND APPLICATION
Sense of the Intense
Locavore
Play Ethic
MARKET SIZE AND FORECAST
Key points
The rise of ice cream chains encourages the presence of packaged artisanal ice cream products
Figure 9: Retail sales of ice cream, by value and volume, China, 2012-14
Harnessing sensory enjoyment to satisfy consumers’ increasingly sophisticated tastes
Future demand for healthy ice cream will lead the market to grow at a strong pace
China’s ice cream market expects to grow sustainably
Figure 10: Retail sales of ice cream, by value, China, 2010-20
Figure 11: Retail sales of ice cream, by volume, China, 2010-20
Forecast methodology
MARKET SEGMENTATION
Key points
Individually wrapped ice cream dominates the market
Figure 12: Segment performance of ice cream market in China, by value, 2010-14
Figure 13: Segment performance of ice cream market in other countries, by value, 2014
In-home usage supports the growth of family/multipacks
Figure 14: Retail value sales and volume of ice cream, by segment, China, 2014
Figure 15: Retail value sales of ice cream, by segment, China, 2015-20
MARKET SHARE
Key points
Figure 16: Value and volume share of China’s ice cream retail market, by company, 2013 and 2014
Multi-brand portfolio creates dynamic competitive landscape
Opportunities for smaller-scale brands to leverage unfulfilled market capacity
WHO’S INNOVATING?
Key points
Gourmet flavours define premiumisation
Figure 17: Frozen treats launches, by top 5 flavours, 2010-15
Figure 18: Chocolate Truffle Flavoured Ice Cream launched by Wall’s Magnum in China, April 2015
Dessert-inspired and coffee-inspired
Figure 19: Bitter Coffee Flavoured Torch Shaped Ice Cream launched by Inner Mongolian Yili Industrial Group in China, September 2014 and Tiramisu flavoured ice cream launched by Inner Mongolian Yili Industrial Group in China, June 2015
Mixed flavour and extra toppings add sensory experience
Figure 20: Ultra Chocolate Flavoured Ice Cream Cone and Blueberry Cheesecake Ice Cream Cone launched by Wall’s Cornetto in China, October 2014
Figure 21: Three Layer Grape Soda Ice Stick launched by Lotte in Japan, July 2014 and Walnut Crispy Ice Cream launched by Jiu Zhou Dairy Qianhe in China, August 2014
Vegetable-inspired holds the key for the health conscious
Figure 22: Frozen treat launches, by ingredients, 2010-14
Figure 23: Tomato Cherry Ice Cream and Carrot Orange launched by Häagen-Dazs Spoon Vege in Japan, July 2014
Figure 24: Corn Flavoured Ice Cream launched by Inner Mongolia Wulanbuhe Dairy Qianhe in China, August 2014
Ice cream cup or tub is getting momentum
Figure 25: Dairy-based frozen launches, by format type, 2010-14
Figure 26: Chocolate and vanilla flavoured mini ice cream cones launched by inner Mongolia Yili Industrial Group in China, June 2015
Embracing alcoholic flavours for adults is a growing global trend
Figure 27: Mojito Water Ice Lolly launched by Unilever Solero in the UK, May 2015 and Remy Martin Christmas Ice Cream lunched by Tesco Finest in the UK, November 2014
COMPANIES AND BRANDS
Unilever
Mengniu
Yili
THE CONSUMER – USAGE OF ICE CREAM
Key points
Soft-serve ice cream offered by on-trade channels remains the most popular format in China
Figure 28: Usage of different types of ice cream products in the last 6 months, April 2015
Females are the main customers for all types of ice cream products
Figure 29: Usage of different types of ice cream products in the last 6 months, by gender and age, April 2015
Figure 30: Banana Flavoured Ice Cream Sticks launched by Binggrae Melona in China, October 2014 &Yogurt Peach Flavoured Ice Stick launched by Inner Mongolia Wulanbuhe Dairy in China, September 2014
Sorbet is popular among young females while frozen yogurt is more appealing to the older generation
Figure 31: Usage of different types of ice cream products in the last 6 months, by gender and age, April 2015
Figure 32: Old Style Yogurt Ice Cream launched by Yi Tong Shi Jia in China, September 2014
Income and households with children are the main differentiations for sorbets and frozen yogurt usage
Figure 33: Usage of different types of ice cream products in the last 6 months, by monthly household income, April 2015
Figure 34: Golden Pineapple Sorbet launched by Ohayo Dairy Products in Japan, May 2014 & Strawberry Yogurt Flavoured Ice Cream launched by Inner Mongolia Mengniu Dairy Group Mönmilk Deluxe in China, October 2014
THE CONSUMER – CORRESPONDENCE ANALYSIS
Key points
Methodology
Scope to boost the appeal of packaged ice cream by harnessing the healthy connotation of natural ingredients
Figure 35: Elements associated with different types of ice cream products, April 2015
Soft-serve ice cream represents diverse features
THE CONSUMER – PERCEPTIONS OF DIFFERENT TYPES OF ICE CREAM
Key points
Artificial ingredients and being too sweet are discouraging female consumers from purchasing packaged ice cream
Figure 36: Elements associated with different types of ice cream products, April 2015
Figure 37: Elements associated with different types of ice cream products, by demographics, April 2015
Figure 38: Strawberry & Vanilla Ice Cream Cones launched by Tesco Free From in the UK, May 2015
Figure 39: Elements associated with different types of ice cream products, by gender, April 2015
Figure 40: Mint Chocolate Chip Frozen Greek Yogurt Bars launched by Yasso in the USA, April 2015
Ice cream tubs and cups can offer multiple flavours for targeting families with children
Figure 41: Elements associated with different types of ice cream products, by presence of children in household, April 2015
Figure 42: Cookie Party Ice Cream launched by Häagen-Dazs Mini Cup in Japan, April 2015 and Assorted Ice Cream launched by Wall’s Huan Qiu Zhen Xuan in China, April 2015
THE CONSUMER – ATTITUDES TOWARDS ICE CREAM PRODUCTS
Key points
Adventurous behaviour can spark more unusual flavours in the Chinese market
Figure 43: Attitudes towards ice cream products, April 2015
Figure 44: Attitude towards ice cream products, by monthly personal income and children in household,   April 2015
Figure 45: Imagine Whirled Peace Ice Cream launched by Ben & Jerry’s USA Vermont’s Finest in China, October 2014 & Violet and Alpine Honey Ice Cream launched by Gineys Histories de Glaces in France, August 2014
Health benefits hold the key to premiumisation
Figure 46: Attitudes towards ice cream products, by demographics, April 2015
Figure 47: Yogurt and Rose Petals Ice Cream launched by Coppa della Maga in France, October 2014
Figure 48: Attitudes towards ice cream products, by demographics, April 2015
Figure 49: Remarkable Berries and Cream Ice Cream launched by Joe Delucci’s Gelato in the UK, April 2015 Caramel Ice Cream Stick launched by Unilever Magnum in the UK, April 2015
Learn from existing frozen yogurt products
Figure 50: Attitudes towards ice cream products, by gender and age, April 2015
Figure 51: Luxury Frozen Mango Yogurt launched by Margaret’s Frozen Luxuries in the UK, May 2015 and Pomegranate Bio Lie Frozen Yogurt launched by Yog Dairy in the UK, February 2015
THE CONSUMER – INTEREST IN ICE CREAM FLAVOURS
Key points
Aligned with the global trend, dessert and coffee inspired ice cream are the hottest flavours
Figure 52: Interest in innovative ice cream flavours, April 2015
Figure 53: Interest in innovative ice cream flavours, by gender and age, April 2015
Figure 54: Interest in innovative ice cream flavours, by city tiers, April 2015
Figure 55: Macchiato Coffee Flavoured Ice Cream launched by Wu Feng Shi Napoleon in China, July 2014 and The Ultimate Colombian Coffee Ice Cream launched by Marks & Spencer in the UK, October 2014
Vegetable inspired flavours offer strong potential
Figure 56: Interest in innovative ice cream flavours, by gender and age, April 2015
Figure 57: Interest in innovative ice cream flavours, By Mintropolitans versus Non-Mintropolitans, April 2015
Figure 58: Lemon Ginger Float Ice Cream launched by Häagen-Dazs Mini Cup in Japan, August 2014
Ethnic inspired is important to ensure premium image
Figure 59: Interest in innovative ice cream flavours, by demographics, April 2015
Figure 60: California Walnut Ice Cream launched by Wu Feng Leng Shi Pamper Me in China, July 2014
Alcohol inspired flavoured ice cream generates greatest future interest
Figure 61: Interest in innovative ice cream flavours, by demographics, April 2015
Figure 62: Interest in innovative ice cream flavours, by demographics, April 2015
Figure 63: Cocktail Lollies launched by Tesco in the UK, April 2015
Figure 64: Rum Banana Flavoured Ice Cream launched by Wu Feng Foods in China, July 2014
Grain inspired and Chinese traditional flavoured tailored for household usage
Figure 65: Interest in innovative ice cream flavours, by demographics, April 2015
Figure 66: Granola Ice Cream Stick launched by Ohayo Dairy Products in Japan, May 2015
Figure 67: Jujube and Milk Flavoured Ice Cream launched by Inner Mongolia Yili Industrial Group in China, September 2014
THE CONSUMER – CREATING THE IDEAL ICE CREAM
Key points
Sensory experience is key
Figure 68: Elements contributing to creating the Ideal Ice Cream Product, April 2015
Figure 69: Elements contributing to creating the ideal ice cream product, by gender and age, April 2015
Figure 70: Strawberry Bar launched by Yong An Foods Sunices Shui Guo Series in China, September 2014
Figure 71: Dried Cranberry and Milk Ice Cream launched by Meiji in China, March 2015
Being healthy is an inevitable fashion
Figure 72: Elements contributing to creating the ideal ice cream product, by demographics, April 2015
Figure 73: Lv Se Di Dai Mung Bean Flavoured Low-Sugar Ice Cream launched by Inner Mongolia Yili Industrial Group in China, October 2014
OIder generations have greater interest in organic ice cream
Figure 74: Elements contributing to creating the ideal ice cream product, by demographics, April 2015
Figure 75: Organic Banana & Raspberry Smoothie Ice Lollies launched by Real Nice Organic in the UK, October 2014 & Organic Luxury Ice Cream launched by Mackie’s of Scotland in the UK, June 2014
THE CONSUMER – OCCASIONS FOR EATING ICE CREAM
Key points
Over 70% of respondents eat ice cream when relaxing
Figure 76: Occasions of eating ice cream in the last 6 months , April 2015
Figure 77: Occasions of eating ice cream in the last 6 months, by age, April 2015
Snacking behaviour appeals to affluent female consumers
Figure 78: Occasions of eating ice cream in the last 6 months, by demographics, April 2015
Figure 79: Your Mini Favourite Ice Cream Assortment launched by Unilever Wall’s Evening Selection in France and Spain, May 2015
64% of females aged 40+ are have a strong need for ice cream when they crave something sweet
Figure 80: Occasions of eating ice cream in the last 6 months, by gender and age, April 2015
Figure 81: Pink Raspberry & Black Espresso Ice Creams launched by Magnum Mini in the UK, April 2015
Replenishing energy can encourage older generations and higher earners to purchase ice cream
Figure 82: Occasions of eating ice cream in the last 6 months, by gender and age & monthly household income, April 2015
Figure 83: Banoffee Protein Ice Cream launched by W! Wheyhey Protein Ice Cream in the UK, December 2014
More than a third of households with children eat ice cream while on-the-go
Figure 84: Occasions of eating ice cream in the last 6 months, by children in household, April 2015
Figure 85: Your Family Favourites Ice Cream Assortment launched by Unilever Wall’s After School in France, May 2015
THE CONSUMER – MEET THE MINTROPOLITANS
Key points
Why Mintropolitans?
Who are they?
Figure 86: Demographic profile of Mintropolitans versus Non-Mintropolitans, by gender, age and personal income
Figure 87: Demographic profile of Mintropolitans versus Non-Mintropolitans, by marital status, city tier and education level
Vegetable-flavoured and organic ice cream is loved by Mintropolitans
Figure 88: Interest in innovative ice cream flavours, by Mintropolitans versus Non-Mintropolitans, April 2015
Figure 89: Elements contributing to creating the ideal ice cream product, by Mintropolitans versus Non-Mintropolitans, April 2015