According to the Chinese Ice Cream Industry Trend Report 2022, the market reached a size of 160 billion yuan in 2021, ranking first globally. Forecasts indicate growth up to 223 billion yuan (approximately USD 35.5 billion) by 2025, with further expansion to USD 40.19 billion by 2027 (CAGR of 8.07% from 2020 to 2027).
Despite these impressive numbers, annual per capita consumption in China is around 3.5 liters, lower than that of Western countries (6–8 liters). This gap represents a huge opportunity for companies in the sector, especially for Italian artisan gelato, considered by Chinese consumers as one of the best in the world.
History and Evolution of Gelato in China
Ancient Origins
Chinese gelato has very ancient origins, developed to meet the emperors' desire for refreshment. During the winter, large blocks of ice were stored in the cellars of imperial palaces to prepare cold foods during the summer.
As early as the Tang dynasty (618–907), the Chinese discovered the endothermic properties of saltpeter which, when dissolved in water, promoted freezing. This innovation revolutionized ice production used in gelato preparations.
During the Song dynasty (960–1279), the first cold drinks similar to modern sorbets appeared, while in the Yuan dynasty (1271–1368), milk began to be added to ice and fruit preparations, creating a product very similar to modern creams.
Legend has it that Emperor Kublai Khan, a great admirer of gelato, forbade the disclosure of preparation techniques, and that Marco Polo learned its secrets during his stay in China, bringing that knowledge back to Italy.
Modern Development
The gelato industry in China experienced slow but steady development until 1979, when Deng Xiaoping’s “open door policy” led to China's opening to world markets. During this period, many producers imported cutting-edge technologies and machinery from Japan and Hong Kong, significantly contributing to the sector’s growth.
Over the past 30 years, gelato has become extremely popular in China, with production volumes increasing about 25-fold. Today, sales volumes are around 3,800,000 tons per year, and in 2014, 73 out of 100 Chinese people ate at least one gelato.
Current Market Analysis
Market Segmentation
The Chinese gelato market is currently segmented as follows:
- Industrial gelato: 72% of the market (mainly due to low cost)
- Soft ice cream: 21% of the market
- Artisan gelato: 7% of the market (growing)
Chinese consumers are increasingly attentive to food quality and aware that mass production involves the use of additives and preservatives. For this reason, artisan gelato is gaining market share thanks to its freshness and high-quality ingredients.
Consumption Trends and Preferences
Thanks to the expansion of a middle class with growing income and the influence of international tastes, the consumption of premium gelato continues to rise. Seeing the market’s potential, major brands like Unilever have opened new plants in the city of Taicang, while Nestlé plans to launch over 20 new gelato products in China in 2025 alone.
Based on product type, the Chinese gelato industry is classified into:
- Artisan
- Impulse (individually packaged gelato)
- Take-home
Consumer Profile
Demographic data show that:
- Women account for 62.8% of consumers, men 37.2%
- Eastern and southern China have the highest consumption rates (28.1% and 18.0%)
- Gen Z and Millennials make up over 40% of consumers
Favorite Flavors
According to an iMediaResearch survey, over 70% of consumers eat gelato even in winter, mainly attracted by the pleasure and freshness of the product. Flavor is the main factor in purchasing decisions, followed by brand awareness and packaging.
The most popular flavors are:
- Chocolate
- Fruit
- Milk (fiordilatte)
In addition to traditional flavors, innovative new ones are emerging, such as:
- Cheese with soy sauce
- Balsamic vinegar
- Rice wine
Sales Channels
The main sales channels for artisanal and industrial gelato in China are:
- Ice cream shops
- Gelato shops
- E-commerce
- Supermarkets
With the gradual digitalization of society, online channels have become preferred methods for purchasing gelato, but physical gelato shops remain essential to meet specific consumption needs.
Physical Gelato Shops
Although many consumers buy gelato from supermarkets or e-commerce platforms, gelato shops play an important role during social moments. Opening a physical shop near tourist destinations, shopping malls, or amusement parks can be highly advantageous.
E-Commerce Platforms
The market share of online gelato sales has grown significantly, thanks also to investments in developing cold chain logistics. Due to pandemic restrictions, online channels saw further growth, rising from 5% in 2020 to 20% in 2021.
The main platforms used by consumers to buy gelato are Tmall and JD.com (JD Worldwide).
Marketing and Promotion Strategies
Adapting to the Chinese Market
Young Chinese consumers seek stimulating products that satisfy their desire for novelty. Social media is essential for discovering new products through experience sharing.
To succeed, it's crucial to localize content by adapting it to Chinese consumer perceptions without distorting the brand’s identity and its products.
Online and Offline Strategies
A strong online presence enables the creation of an effective strategy that connects social media promotion to the physical shop, increasing foot traffic and offering a unique product experience.
Collaborations with Chinese influencers (Key Opinion Leaders – KOLs) are an excellent way to reach Chinese audiences, not just by advertising individual products, but by creating an experience in the gelato shop that the KOL will showcase to their followers.
Key Opinion Consumers (KOCs), who have large followings on social media, enjoy strong credibility with users thanks to their genuine reviews and help fuel word-of-mouth on social platforms.
Emerging Trends in the Gelato Market
Healthy Gelato
The growing interest in a healthy lifestyle has inevitably influenced gelato demand in China. Consequently, brands have started adapting to new needs by developing products with less fat and sugar.
Gelato is becoming a nutritious snack that promotes mental well-being without sacrificing a balanced diet. Plant-based ingredients perfectly meet the need to produce this type of gelato.
The well-known plant-based brand OATLY has partnered with other brands to create plant-based gelato. Its oat milk gelato sold over 100,000 units in Shanghai in just ten days.
Natural Ingredients and Simplification
Many companies are focusing on simplifying the preparation process and using fewer, healthier, and more natural ingredients. Chinese consumers are increasingly seeking highly natural products that avoid preservatives, artificial flavors, and colorings.
Artisan gelato perfectly meets this demand, offering a fresh, genuine, and high-quality product.
Legal Requirements and Bureaucracy
Starting a business in China as a foreign entrepreneur requires careful planning and assistance from local consultants. Here are the basic steps:
1. Choose the Business Structure
Most foreign gelato entrepreneurs choose between:
- Wholly Foreign-Owned Enterprise (WFOE): A company fully owned by foreigners. It allows complete control but requires more bureaucracy and investment.
- Joint Venture (JV): A partnership with a Chinese company. It can facilitate access to permits and local knowledge but may reduce management autonomy.
2. Register the Business
- Apply for a Business License through the State Administration for Market Regulation (SAMR).
- Register the Chinese name of the company (mandatory).
- Open a corporate bank account.
- Register with the tax authority and obtain a tax identification number.
- Request the Food Business License (if producing/selling food).
3. Food Safety and Hygiene Certifications
Food production and sale are strictly regulated in China. You’ll need:
- Compliance with the Food Safety Law.
- Inspection and approval of the premises by the local Food and Drug Administration (CFDA).
- Staff trained in hygiene and food safety, often with mandatory certification.
Education and Training: Learning the Art of Italian Gelato Making
Before opening a gelato shop in China, it’s essential to acquire the right technical and managerial skills. Artisan gelato is not just a dessert—it's a craft that requires precision, creativity, and knowledge of ingredients and production techniques.
Where to Learn
- Italy is the best place to receive professional training. There are internationally recognized gelato schools offering courses in English or with Chinese interpreters.
- Platforms like ilgelatoartigianale.info offer useful information on schools, training programs, and workshops in Italy and abroad.
- Several international academies also offer online and in-person courses adapted to aspiring gelato makers in Asia.
What You Will Learn
A professional course usually includes:
- The science behind gelato: ingredients, balance, structure.
- Production techniques using professional batch freezers.
- Recipe customization and menu development.
- Hygiene and food safety regulations.
- Business management and cost control.
Investing in training is key to ensuring product quality and standing out in the Chinese market, where authenticity and innovation are highly valued.
Opening the Shop: Equipment, Layout, and Local Suppliers
Once you’re trained and have obtained the necessary permits, it’s time to set up your shop.
Choosing the Right Location
In China, location is everything. Ideal areas include:
- Shopping malls and commercial districts.
- Near schools, universities, or office buildings.
- High foot-traffic streets in tier-1 and tier-2 cities.
Shop Design and Layout
Chinese consumers love beautiful, Instagrammable spaces. Your gelato shop should have:
- A clean, modern, and inviting design.
- A visible lab or open kitchen to highlight the artisanal process.
- A small seating area (optional but appreciated in larger cities).
Essential Equipment
You’ll need:
- Batch freezer and pasteurizer (professional models).
- Refrigerated display case.
- Storage freezers, mixers, and stainless-steel worktops.
- Washing station, POS system, and signage in both Chinese and English.
Finding Suppliers
You can:
- Import Italian ingredients (milk powder, stabilizers, fruit pastes) through certified distributors.
- Work with local dairy and fruit suppliers, ensuring they meet safety standards.
- Import professional machinery directly from Italy, with after-sales support in China.
Marketing and Launch: How to Attract Chinese Consumers
Launching a gelato shop in China requires a strong digital presence, storytelling, and a strategy tailored to local tastes and habits.
Branding and Communication
- Create a unique identity: Choose an Italian-sounding name, design a stylish logo, and communicate clearly that your product is authentic Italian artisan gelato.
- Use storytelling to talk about your training in Italy, the natural ingredients, and the artisanal process.
- Highlight keywords like “healthy,” “low-fat,” “natural,” and “handmade” — highly appealing in the Chinese market.
Online Presence
- WeChat and Xiaohongshu (Little Red Book) are essential platforms for communication and marketing in China.
- Open a WeChat Official Account for your shop.
- Use Xiaohongshu for influencer collaborations and visual storytelling.
- Baidu Maps and Dianping (Chinese Yelp) help users find your store and read reviews.
- Consider setting up a mini-program for delivery or a loyalty program via WeChat.
Offline Launch Strategy
- Organize a grand opening with:
- Free tastings.
- Live gelato-making demos.
- Influencer or media invitations.
- Offer limited-time flavors inspired by Chinese tastes (e.g., lychee, matcha, black sesame).
- Partner with local cafés, restaurants, or hotels to create pop-up experiences or gelato corners.
Tips for Success in the Chinese Market
- Adapt without losing authenticity: Introduce new flavors that reflect Chinese preferences, but maintain Italian quality and preparation standards.
- Keep quality high: Local consumers are very attentive to food safety, freshness, and transparency.
- Train your staff well: Ensure they can explain the gelato process and interact with customers in both Chinese and (basic) English.
- Monitor trends: The market evolves quickly — stay updated on digital trends and consumer tastes.