A recent project announcement on the Jiande Municipal Government’s official website revealed NONGFU SPRING’s discreet expansion into the edible ice market. What may seem like an unremarkable "ice-selling" business actually taps into a potential 600 billion yuan market, showcasing Zhong Shanshan’s steady commercial strategy in action.
**Demand Upgrade Spurs New Opportunities** The rise of edible ice is no accident—it stems from a combination of consumption upgrades and diversified usage scenarios. According to a report by China Research Puhua, China’s edible ice market grew from 2.26 billion yuan in 2015 to 19.96 billion yuan in 2022, with projections estimating further expansion to around 61.56 billion yuan by 2025. This growth is underpinned by multiple rigid demands.
Consumers’ increasing preference for high-quality, healthy food and their pursuit of better-tasting cold beverages have driven the market. Edible ice, as a healthy and convenient ingredient, is widely used in beverages, shaved ice, seafood, and even hot pot dining, fueling continuous market expansion.
The shift toward premium products has further unlocked market potential. Traditional bulk ice is being phased out, replaced by high-purity, standardized packaged edible ice, including premium variants like spherical and crystal-clear ice. Data from Hema shows that sales of coffee ice cups surged 60% year-on-year in June 2025, with ice-and-drink pairings becoming mainstream. NONGFU SPRING’s 2kg pure edible ice, sourced from Qiandao Lake and using slow-freezing technology, sold out at 22.8 yuan per pack, demonstrating strong market acceptance for branded, high-quality ice.
**NONGFU SPRING’s Strategic Move** Zhong Shanshan’s decision to enter the edible ice market is not a blind venture but a calculated move leveraging the company’s core strengths.
NONGFU SPRING (Jiande) Xinanjiang Beverage Co. plans to invest 28.42 million yuan to expand production capacity by 7,000 tons annually, utilizing idle workshops within six months. The project, located in Jiande’s Zhujiabu factory, requires only 1,000 square meters of existing space, eliminating the need for additional land. With NONGFU SPRING’s 2024 net profit at 12.1 billion yuan, this small-scale, high-efficiency investment aligns with its prudent approach.
The company’s competitive edge lies in its premium water sources, such as Qiandao Lake, ensuring product differentiation in water safety—a key consumer concern. Additionally, its nationwide cold-chain logistics and established retail and foodservice channels provide immediate sales pathways for edible ice, bypassing the need to build new supply chains—an advantage traditional ice producers lack. Its previous ice cup promotions, bundling drinks with a 1-yuan add-on, proved the effectiveness of channel synergy.
While the edible ice industry appears to operate on thin margins, branded products offer substantial profit potential, attracting numerous players.
**Industry Shakeup Looms** The entry of giants like NONGFU SPRING, Yili, and Mengniu is reshaping the competitive landscape. Currently dominated by regional small-to-medium ice producers, the market faces inefficiencies—some factories require 4 tons of water to produce 1 ton of ice, squeezing profits with high packaging, logistics, and operational costs. A typical 20kg bag of edible ice sells for just 15 yuan, leaving minimal margins after expenses.
Large corporations leverage economies of scale to cut costs, nationwide distribution for broad market penetration, and brand premiums to boost profitability. This pressures smaller players to either consolidate or focus on niche regional markets.
The upcoming 2025 national hygiene standards for edible ice production, imposing stricter requirements on facilities, water quality, and cold-chain logistics, will further strain small workshops’ budgets, accelerating market consolidation. As a compliance leader, NONGFU SPRING stands to gain significant market share.
**Zhong Shanshan’s "Slow Business" Philosophy** Strategically, NONGFU SPRING’s business expansions consistently revolve around "water," from bottled water to tea and juice, and now edible ice—each extension reinforcing core resources and synergies. The edible ice segment not only fills seasonal gaps in cold-chain demand but also strengthens brand penetration through foodservice and logistics, acting as a revenue stabilizer.
Zhong’s patient approach is exemplified by the decade-long cultivation of Dongfang Ye (Oriental Leaf), an unsweetened tea initially struggling at launch in 2011 but now dominating 75% of China’s unsweetened tea market, with H1 2025 sales exceeding 8 billion yuan and contributing over 75% of NONGFU SPRING’s tea revenue.
While edible ice’s market size pales next to bottled water’s 100-billion-yuan scale, its high growth and margins align perfectly with NONGFU SPRING’s measured pace. With new standards driving industry restructuring and premiumization trends, Zhong’s latest "ice-selling" venture may well become another cornerstone in the company’s water-centric empire.
Comments