As in many other areas, young Chinese are turning away from global ice cream brands like Häagen-Dazs in favor of cheaper, nimbler local rivals. Chinese teenagers now prefer domestic brands – they look great, and new products are coming out every month that tempt them to take selfies and post on social media. “Haagen-Dazs is simply not cool” is a sentiment that is becoming common among young Chinese, reflecting broader shifts in the country’s consumer landscape. From ice cream to candy, beverages and beyond, foreign brands that once dominated the Chinese market are losing ground to domestic rivals, which are not only outcompeting them on price, but often also on branding and product innovation. For a long time, global brands like Haagen-Dazs were able to maintain high prices in China by styling their products as “premium”, “exotic” or “imported”, trading on a sense that foreign goods were exciting, higher quality – and, in some cases, safer – than domestically-made alternatives. But those labels appear to carry less weight with Gen-Z consumers, who have grown up in an era when China already leads the world in a range of industries.
As China’s middle class has seen its disposable income eroded by an economic slowdown and the real estate crisis, many are turned off by the idea of shelling out over CNY30 for a Starbucks coffee or CNY40 for a scoop of Haagen-Dazs ice cream.
Meanwhile, competition in China’s ice cream market is heating up, with domestic brands releasing new products at an accelerating pace and a wave of powerful new players entering the market, Beijing-based market research firm Chinabgao.com said in a report released earlier this month. More than 2,200 new ice cream-related start-ups were founded in China in the first half of 2025 alone, according to data from the Chinese company database Qichacha, indicating strong entrepreneurial interest in the sector. Foreign incumbents like Starbucks and Haagen-Dazs appear to be melting under the pressure. Both firms have started cutting prices this year to stay competitive, as domestic chains like Mixue Ice Cream & Tea, Heytea and Nayuki make inroads with sub-CNY10 offers and creative combo sets combining tea and desserts. Many Chinese ice cream and beverage firms roll out new products at a pace that would be unthinkable for global brands like Haagen-Dazs, whose stores mostly stick to the same classic selection of around 20 flavors.
“We launch at least two new flavored drinks every month,” said one manager of a tea and ice cream store in Guangzhou. “We’re also offering various creative beverages – like good for sleep, energy, or skin whitening.” “Products made with seasonal local fruits are more popular,” he added. “Labels like ‘imported ingredients’ don’t mean much to young people.” Local brands are also often more agile in distribution, building an “everywhere presence” through convenience stores, chain stores and delivery platforms. Whether out shopping, working late, traveling or staying at home, Chinese consumers are always able to access an array of domestic dessert and drink options, the South China Morning Post reports.
