Rival conglomerates Unilever and Nestle are scrapping for their shares of China's ice cream market, even as competition increases from a number of new and established local players. China's ice cream market, estimated by the China Association of the Bakery and Confectionery Industry to have been worth 23 billion yuan ($ 2.78 billion) in 2002, and projected at 40 billion yuan annually by 2006, is currently led by the two foreign companies.
Anglo-Dutch Unilever, which has 10% of the market, is said to be spending 150 million yuan to promote its popular Wall's ice cream brand this year. Ken Donaldson, head of Switzerland-based Nestle's ice cream business in China, said his company's investment would also be higher than last year's. But native firms are looking to challenge their foreign competitors.