Retail giants, Chinese brands battle for soft serve throne!

Exploring the soft serve ice cream market battlefield in Thailand in 2025

Thailand's soft serve ice cream market is entering a new phase in 2025, marked by significant shifts as major domestic players aggressively vie for market share. Leading retail giants—CP Group, Central Group, IKEA, and Carabao Group—are all stepping into the arena, intensifying competition.

According to a report by Kasikorn Research Centre, the overall beverage shop market, which includes bakeries and ice cream outlets, is projected to reach a value of approximately 85.32 billion baht in 2025. This represents an estimated growth of 3.2% compared to 2024. The growth is driven by continued expansion from both large and small operators, as well as the increasing presence of international beverage franchises across Thailand.

From market leader Dairy Queen to challenger Mixue: The soft serve ice cream battle heats up in Thailand

Thailand’s beverage and ice cream market continues to show strong growth potential year after year, especially within the soft serve ice cream segment. Over the past 2–3 years, new brands have increasingly entered the scene, with a notable wave coming from China. Since 2022, Chinese brands have been actively expanding into the Thai market, led by Mixue, a global giant with the highest number of outlets worldwide. Mixue has targeted community-based locations across the country, offering a mix of beverages and soft serve ice cream at budget-friendly prices.

Following Mixue’s lead, other Chinese brands have also begun investing in Thailand, reshaping the landscape of the ice cream market. Soft serve has rapidly grown its share, becoming a dominant segment amid changing consumer trends.

However, Chinese brands were not the pioneers of soft serve in Thailand. That title belongs to Dairy Queen, the American-born global franchise that introduced soft serve to Thai consumers. Dairy Queen entered the Thai market around 1996 through Minor International Public Company Limited (MINT), which acquired the franchise rights. Since then, the brand has grown rapidly, building widespread recognition with its affordable starting price of just 12 baht.

Today, Dairy Queen operates over 500 branches nationwide, through both direct investment and franchising. It remains the leading soft serve brand in Thailand, known for its classic vanilla and chocolate flavours. The brand also adapts to local trends, such as launching limited-time seasonal offerings like soybean milk-flavoured soft serve for 20 baht, catering to Thailand’s growing health-conscious demographic.

Globally, Dairy Queen is owned by Berkshire Hathaway Inc., the holding company chaired by billionaire Warren Buffett, and operates in over 30 countries.

All major QSR brands are joining the fray—McDonald's, KFC, and Burger King

Following this trend, several other brands have expanded into the soft serve ice cream segment—also known as "ice cream cones"—particularly within the Quick Service Restaurant (QSR) market. 

Among them is McDonald’s, the global fast-food giant from the US, operated in Thailand by McThai Co., Ltd. While primarily known for burgers and beverages, McDonald’s has diversified its dessert menu to include soft serve ice cream, starting at just 12 baht. The brand currently operates around 240 branches nationwide.

KFC, another major player in the fried chicken segment, has also entered the ice cream space. Managed by three different franchise operators in Thailand, KFC now offers vanilla cones starting at 12 baht and chocolate-dipped cones at 19 baht, available at approximately 383 locations across the country.

Likewise, Burger King, the well-known burger chain under the Minor Group, has joined the competition by introducing soft serve ice cream at an accessible price of 12 baht. 

Each of these QSR brands continues to launch new flavours and seasonal promotions to stimulate the market and attract new customers, particularly during festive periods.

Thailand’s new retail battleground: CP Axtra, Tops, IKEA, CJ race to expand their soft serve ice cream brands

Over the past 1–2 years, Thailand's retail giants have jumped into the soft serve ice cream market, with nearly every major player introducing their own brand in response to the growing demand.

CP Group, through CP Axtra Public Company Limited, which operates Makro and Lotus with over 2,600 outlets nationwide, identified strong potential in the rising ice cream trend. In collaboration with CP-Meiji, the group launched a soft-serve ice cream brand in late 2024. These small-format shops are being rolled out within Makro and Lotus’s locations, with more than 50 outlets now open across the country. Their key competitive strategy: pricing—only 8 baht per cone, made with CP-Meiji milk.

Central Group, through Tops Supermarket (under Central Retail Corporation), with 719 outlets in various formats across Thailand, has officially entered the soft-serve market with cones starting at 12 baht. They offer diverse flavours including original cream, vanilla, and premium Uji matcha imported from Japan. The brand is initially launching in Tops Daily branches, already operating in 84 locations nationwide, including Bangkok, Phuket, Chonburi, Pathum Thani, Samut Prakan, Nonthaburi, Surat Thani, Prachuap Khiri Khan, Ayutthaya, and Chiang Mai.

Furniture and home décor giant IKEA, operated in Thailand by Ikano (Thailand) Co., Ltd., has also joined the trend. Known for its food and beverage offerings alongside home products, IKEA introduced a soy-based soft-serve ice cream at a starting price of 8 baht, highlighted as a health-conscious option. However, IKEA’s reach remains limited, with soft-serve available in just five branches: Bangna, Bang Yai, Sukhumvit, Phuket, and Chiang Mai.

Carabao Group, through its retail arm CJ Express Group Co., Ltd., which manages CJ Supermarket, CJ X, and CJ More, has entered the market under the brand “Tian Tian”. Their signature Thai tea soft serve cone starts at 15 baht, aimed at drawing in local customers. The brand began rolling out last year and currently operates in over 84 branches nationwide.

As these retail giants aggressively move into the soft serve space, benefiting from their vast branch networks and strategic locations, they are rapidly expanding their customer base, particularly among nearby communities and loyalty program members.

This has turned Thailand’s soft-serve ice cream scene into a highly competitive battlefield. With low price points, high accessibility, and broad mass appeal—especially during the summer months—soft serve has become a top-choice refreshment. However, as more local, Chinese, and international brands join the fray, only the most adaptable and cost-efficient players will thrive. Efficient cost management and strategic agility will be crucial for long-term profitability and sustainability in this crowded market.