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Nongfu Spring and Mixue Ice City have successively launched ice cups, which has once again heated up the hot ice cup market this summer.

On the other hand, the topic of high-priced ice cups once became a hot topic. At present, the price of edible ice cups made of "water + cup" is generally between 3 yuan and 5 yuan. Some flavored "ice cups" with coffee, juice and other ingredients are priced at nearly 7 yuan, and "smoothie cups" sold through some channels are even more than 10 yuan. Industry insiders predict that the entry of big brands indicates that the market prospects of ice cups are good, and they can also use the scale advantages of the industrial chain to lower the overall price of ice cups.

According to ice-making equipment and ice cup manufacturers, the cost of edible ice cups mainly lies in ice-making equipment and cold chain logistics, plus product distribution, product promotion and other costs. The retail price of an ice cup with a factory price of 1.2 yuan is generally more than 3 yuan. Since there is no need for additional investment in the production and sale of ice cups on site, the cost is mainly reflected in the cups. Whether the water purification filter in the store can be replaced in time, and whether the ice trough, ice shovel, and operating table are clean, etc., determines the quality and safety of such ice cups.

The ice cup market is particularly hot this summer. Photo by Guo Tie, chief reporter of Beijing News

Ice cups become popular

"The entry of big brands is a signal that the industry is optimistic about the prospects of the ice cup market." Regarding the launch of ice cup products by Nongfu Spring and Mixue Ice City, Mr. Zhang, sales director of a cold drink company in Chengdu, Sichuan, told the Beijing News reporter.

After a survey of the southeast coastal areas of China and foreign markets, Mr. Zhang's company spent hundreds of thousands of yuan to purchase an ice machine and filling system. In March 2024, its ice cup products went into production. "Large companies have stronger brand advantages. Our main feature is high cost-effectiveness. We have already been contacted by distributors."

In fact, there are quite a few companies entering the ice cup market. As early as June 2023, a salesperson in a dairy marketing group said that the "Jianying" cold brew coffee ice cup topped the list of new ice products on the fifth day of its launch. In December of the same year, the ice cream brand "Aoxue" launched two edible ices at a new product launch conference. According to Qichacha data, as of June 25, 2024, there are 7,584 ice-making related companies in my country.

The activeness on the production side stems from the booming demand side. In June 2024, the sales volume of Lawson ice cups increased by more than 144% year-on-year. Since the start of the European Cup, the ice cup takeaway volume on the Ele.me platform has increased 10 times year-on-year. A staff member of a community supermarket in Beijing said that the 160-gram bagged edible ice sold in the store can be sold out in two days (40 bags). A convenience store even has two freezers specifically for storing ice cups. According to the clerk, "Two freezers can hold 80 ice cups, and they are basically sold out in one day."

A convenience store in Beijing is equipped with two freezers for ice cups. Photo by Guo Tie, chief reporter of Beijing News

The "2023 Instant Retail Ice Products and Drinks Consumption Trend White Paper" released by Oliver Wyman and Meituan Flash Purchase shows that more than 40% of consumers want to consume alcohol, beverages, and dairy products in an iced state. The consumption amount and frequency of ice products such as low-temperature dairy products, ice cream, ice beer, ice pre-mixed cocktails, ice packaged beverages, and ice packaged water have increased by 10%-15% compared to 2019. In the next three years, the growth rate of ice products and drinks in the instant retail channel is expected to reach 39%, far exceeding the 8% growth rate of all channels. It is expected that by 2026, the sales scale of ice products and drinks in the instant retail channel is expected to exceed 63 billion yuan.

Zhu Danpeng, a food industry analyst, believes that the popularity of ice cups stems from the convenience they provide for iced drinks and the new generation of consumers' experience of making their own drinks, which can be shared with photos and is socially relevant. The ice cup market is expected to see explosive growth in the future, but the current price is high. After large companies join in, the price is expected to be more affordable.

Mr. Yang, sales manager of an ice-making equipment manufacturer in Guangzhou, told the Beijing News that after the ice cup became popular, the number of calls to consult about purchasing equipment began to increase, but actual sales did not increase significantly. Many companies became concerned when they saw big brands entering the market and the increase in competitors. In addition, whether the popularity of the ice cup market is a real demand or a hype by merchants remains to be seen.

Where does the “high price” come from?

As the popularity increased, the price of ice cups also soared. Topics such as "Who is buying an ice cup at 3.5 yuan?" and "Some ice cups are criticized for their prices exceeding 10 yuan" have become hot searches.

A Beijing News reporter visited the Beijing market and found that the current terminal price of transparent edible ice cups is generally 3 to 5 yuan, comparable to the price of medium-priced ice cream and beverages. For example, the 160-gram ice cup sold in convenience stores is 3 yuan, and the 220-gram large package is 4 yuan; the 160-gram "7S" edible ice cup and "Ice Extreme" edible ice cup sold by the 7-11 chain are both priced at 4 yuan, and the "Fruit Sound" domineering lemon cup (190 grams) is priced at 5.9 yuan; the 160-gram edible ice cup sold on the Hema platform is priced at 3.5 yuan, and the flavored "Ice Cup" (96 grams) with coffee, passion fruit juice, and grape juice is priced at 6.9 yuan; a set of flavored "smoothie cups" sold in FamilyMart convenience stores are priced at 15 yuan per cup.

Some netizens questioned the price of ice cups made of "water + plastic cups". In a Weibo poll on the price of ice cups, 62.5% of users chose 1 yuan and 19% chose 2 yuan, which shows that the current market price of ice cups is higher than many consumers' psychological expectations.

Where does the "high price" of ice cups come from? Mr. Zhang told the Beijing News reporter that the characteristics of high-quality edible ice are regular and square shape and crystal clear texture, which depends on the investment of good process equipment. "We have water purification, sterilization equipment and cold chain logistics for ice cream production, and only need to spend hundreds of thousands to purchase ice making and filling equipment. If a company starts from scratch to produce ice cups, the investment scale may be millions. The ex-factory price of our 160-gram ice cup is 1.2 yuan, and the terminal guidance price is 3.5 yuan. The manufacturer's gross profit is not high, and the terminal gross profit depends on how the distributor increases the price."

Mr. Yang also confirmed to the Beijing News reporter that the production line of ice cups is very expensive, with an overall investment of more than one million yuan. The ice cups produced also have to go through distribution, cold chain logistics, product promotion and other links, which are all costs. In addition, the sales of ice cups have obvious seasonal characteristics. May to September each year is the peak sales season, and autumn and winter are the off-season. If the sales volume does not reach a certain scale, it is difficult for the company to obtain good profits.

Unlike the ice cups sold in chain convenience stores that cost three or five yuan per cup, the 700ml ice cup sold by Mixue Ice City is only 1 yuan, so it is called the "price butcher" in the ice cup market. According to an interview with a Beijing News reporter, the ice cups sold by Mixue Ice City are not pre-packaged products produced and distributed by factories, but are made on-site by small ice machines in each store and then sealed and sold. No additional equipment or cold chain logistics investment is required, and the cost is mainly reflected in the cups.

According to industry insiders, the current cost of a 400 ml plastic cup used for freshly brewed tea is around 40 cents, and the cost of a 700 ml large cup is around 70 cents. This means that if a store sells freshly made ice cups for 1 yuan, the gross profit is only 2 or 3 yuan.

New standards introduced

Is the ice cup frozen drinking water, or an ice product made only with water?

In fact, my country had the industry standard SB/T 10017-92 "Edible Ice" as early as 1992. This standard was revised in 1999 to form the current domestic trade industry standard SB/T 10017-2008 "Edible Ice for Frozen Beverages". This is the product standard currently used by edible ice cups such as Nongfu Spring, Ice Extreme, Convenience Bee, and Hema.

The implementation standard of a certain ice cup is SB/T 10017. Photo by Guo Tie, chief reporter of Beijing News

According to the SB/T 10017-2008 standard definition, edible ice is a frozen drink made from drinking water through sterilization, injection molding, demoulding, packaging and other processes. It should be slightly transparent, free of pores, pure and odorless, and free of foreign impurities visible to the naked eye. The temperature of the product storage cold storage and sales display cabinet should not be higher than -12℃.

In March 2024, the industry standard QB/T 8022-2024, "Edible Ice for Frozen Beverages", was approved by the Ministry of Industry and Information Technology and will replace SB/T 10017-2008 and will be implemented on October 1, 2025. The new standard specifies the sensory, safety and net content requirements for edible ice, as well as production process control, inspection rules, labeling, packaging, transportation and storage.

Compared with pre-packaged edible ice cups that comply with the above standards, ice cups made and sold on site may pose certain food safety risks if they are not properly managed. Mr. Kang, a tea drink operator, told the Beijing News that the ice maker used by the store is connected to a water purifier. Whether the purified water quality can meet the edible ice standard depends on the water quality and whether the filter element is replaced regularly. In addition, the ice made by the store will first fall into the ice trough of the ice maker to keep it warm, and then the employees will use a shovel to transport the ice cubes to the operating table for making drinks. If the utensils are not cleaned properly, secondary contamination may occur.

Zhu Danpeng believes that there is currently no unified mandatory standard for edible ice cups, so both pre-packaged products and on-site made and sold products can be collectively referred to as "ice cups", and the product quality and hygiene can be controlled according to the edible ice industry standards and the catering industry standards respectively.

Beijing News Chief Reporter Guo Tie

Editor: Li Yan

Proofread by Zhao Lin