In the hot summer season, ice cream sales are usually at their peak, but overseas brands like Häagen-Dazs are feeling a chill in the Chinese market. The sluggish Chinese economy has resulted in consumers tightening their wallets, reducing high-end consumption. Price wars in various industries including coffee, as well as factors such as nationalism, have contributed to overseas brands facing difficulties in the Chinese market.
Over the years, Häagen-Dazs has been revered by Chinese enthusiasts of cool and sweet treats as a fashionable and high-end delicacy. Since entering China in 1996, with its high-end positioning and emotional marketing slogan “Love her, then take her to eat Häagen-Dazs,” the brand has captured countless consumers. However, in 2025, Häagen-Dazs is facing a crisis: in the third quarter of the 2025 fiscal year, its revenue in the Chinese market was only $138 million, a 3.2% decline compared to the previous year.
In recent years, with a decrease in customers, the sales of this ice cream chain store in China have been continuously declining, leading to the closure of Häagen-Dazs stores all over the country. Häagen-Dazs has reduced its store count to less than 300.
The challenges faced by Häagen-Dazs highlight the difficulties that global food and beverage brands are encountering in the Chinese market. Bloomberg reported in June that its parent company, General Mills, is considering selling its Häagen-Dazs stores in China.
The challenges for Häagen-Dazs are becoming increasingly severe. With the slowdown in the Chinese economy and financial markets full of uncertainty, Chinese consumers have become cautious and are increasingly turning away from higher-priced brands. Generation Z consumers are showing a growing preference for domestic products. However, the more significant threat comes from the intense competition of local ice cream chain stores in China, which offer lower-priced products tailored to local demand.
In early July, a new round of battles in the takeaway market in China reignited, where a cup of coffee delivered to your door costs only 2 yuan. The three major delivery giants – JD.com, Alibaba, and Meituan – have launched substantial subsidy programs, given out red envelopes, and even introduced zero-cost purchases to stimulate consumer spending. China’s pearl milk tea chain, HEYTEA Group, also rolled out a 2 yuan (0.28 USD) ice cream. Traditional brands such as Xuelian and Guangming Ice Bricks (around 1 yuan) are making a comeback by appealing to nostalgia.
In the beverage industry, local companies like Luckin Coffee and CoCo are competing for consumers with low-priced products. The price wars have compelled Starbucks to lower the prices of its tea products and open free “study rooms” to attract customers, despite its management previously expressing disinterest in price wars.
On June 9, The Paper reported that starting from June 10, Starbucks would collectively adjust the prices of its three main product categories – Frappuccino, Teavana shaken iced tea, and Teavana latte – with dozens of products seeing price adjustments. For example, for a venti size, the average price reduction reached 5 yuan.
During the Dragon Boat Festival, most of Luckin Coffee’s products saw a price drop from 9.9 yuan to 6.9 yuan, displayed as a limited-time offer. The management of Luckin Coffee has reiterated multiple times that they will continue to maintain competitive pricing strategies (9.9 yuan).
Furthermore, the Chinese market poses challenges for beer manufacturers as well, with a reduction in corporate hospitality and a slowdown in consumer spending leading people to buy beer to enjoy at home rather than visiting bars. Budweiser InBev’s beer sales in the second quarter were below expectations, partly due to its underperformance in China compared to the industry average.