Shoppers visit a Heytea store in Qingdao, Shandong province, on May 31. TANG KE/FOR CHINA DAILY

With competition in China's new-style tea sector heating up, merchants are opening up a new track — gelato.

This ice cream category, which was once a preserve of Italy's high-end dessert shops, is now appearing on the menus of China's food and beverage districts, the basement level of core business districts and even tea shops.

Priced around 30 yuan ($4.4), and with descriptions of "handmade", "fresh ingredients" and "dense texture", gelato is attracting young people to lock in and make repeat purchases.

With all the frenzy, players of all sizes are vying to enter the game. New brands are being incubated, old brands are accelerating their expansion, and tea beverage brands are following suit.