CNBC AI News, August 3rd – This summer’s ice cream market is proving to be a tale of two tiers, with mid-range options dominating sales. Reports indicate that ice cream priced between $3 and $5 (USD) are the clear winners, commanding nearly half of the market share. In contrast, premium-priced offerings exceeding $10 are struggling to gain traction.
Data from leading offline retail tracker, Winsight Grocery Business, reveals that ice cream in the $3-$5 price bracket accounted for a significant 45.97% of total sales during May and June of 2025. This marks the third consecutive year that this price point has held the top spot, underscoring its sustained popularity with consumers.
The high-end of the market isn’t faring nearly as well. Ice cream priced above $12 saw its sales share shrink from 5.99% in 2023 to just 3.95% in 2025, signaling a contraction in demand for premium frozen treats.
One need look no further than Zhong Xue Gao, once a darling of the premium ice cream scene, to understand the challenges facing the high-end market. In July 2025, the Shanghai Third Intermediate People’s Court announced that Zhong Xue Gao had filed for bankruptcy liquidation due to insolvency. The company’s monthly sales on its Tmall flagship store plummeted from a peak of 100,000 orders to a mere 5,000, and several of its subsidiaries have entered bankruptcy review proceedings. The company’s founder has also reportedly been placed on a spending restriction list.
Even established international brands like Häagen-Dazs are feeling the chill. General Mills’ financial reports for FY25 Q2 showed a double-digit decline in foot traffic to Häagen-Dazs stores in China. The brand’s mainland China store count has dwindled from 557 in 2019 to just 247. The company appears to have completely exited some third and fourth-tier city markets. While General Mills is attempting to broaden its retail distribution channels, the high-end brick-and-mortar model is struggling to compete in an environment increasingly defined by value-conscious consumer spending.
The current ice cream market is undergoing a notable structural shift, with both the ultra-premium and budget segments shrinking in prominence. This leaves the mid-to-premium price range poised to become the dominant force.
The struggles of traditionally high-priced ice cream brands underscore a crucial point: pricing strategies that are divorced from the purchasing power of the average consumer are becoming increasingly unsustainable in the Chinese market.
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