Gelato Market Size, Share, and Industry Analysis by Source (Dairy and Non-Dairy), by Flavor (Chocolate, Vanilla, Butterscotch, Fruit Flavored, and Others), by Distribution Channel (Retail Channels [Supermarkets/Hypermarkets, Gelato Shops and Ice Cream Parlors, Online Channels, and Others] and Food Service Channels), and Regional Forecast till 2032

The global gelato market is witnessing significant growth owing to its rising popularity as a gourmet dessert option, particularly influenced by Italian culinary traditions. Gelato refers to a variety of ice cream of Italian origin, known for its dense texture and rich flavors.

The market is witnessing a surge in unique and exotic flavor combinations, appealing to adventurous consumers. This trend is complemented by the introduction of various formats, such as gelato bars, tubs, and cups, which cater to on-the-go consumption and impulse purchases. For instance, in July 2024, Ferrero International SpA, an Italian multinational company, launched an original ‘Nutella Gelato’ in Europe. The new product is the company’s first packaged ice cream and is available in a small 470ml tub. As more consumers become familiar with gelato, its appeal continues to grow, especially in non-traditional markets.

Gelato Market Driver

Rising Regional Expansion to Propel Market Growth

The gelato market is expanding in regions such as Asia Pacific, where increasing disposable incomes and exposure to Western dessert trends are driving demand. This growth is supported by the establishment of gelato parlors and retail outlets in these emerging markets. For instance, in June 2023, Amore Gelato and Sorbetto, an Italian frozen dessert brand, planned to expand with franchising and new product offerings in Telangana, Goa, Indore, and Andhra Pradesh.

• As per data provided by premium machine service provider MODALiTA, the gelato market in the U.S. grew by USD 14 billion from 2015 to 2019.

Gelato Market Restraint

Competition from Substitutes to Restrict Market Growth

Gelato faces competition from other frozen desserts and ice cream products. The availability of substitutes, such as American-style ice cream, sorbet, and frozen yogurt, can limit the market share of gelato. Consumers may opt for these alternatives based on factors such as price, flavor preferences, and dietary requirements.

Gelato Market Opportunity

Rising Demand for Premium Desserts to Fuel the Product Demand

Consumers are increasingly seeking out premium, artisanal desserts such as gelato. The demand for high-quality, handcrafted gelato with unique flavors is on the rise, especially in developed markets such as North America and Europe. This trend creates opportunities for manufacturers to expand their product offerings and cater to evolving consumer preferences.

Key Insights

The report covers the following key insights:

• Overview of the Gelato Market


• Supply Chain and Regulatory Analysis


• Drivers, Restraints, and Opportunities


• Impact of COVID-19 on the Global Gelato Market


• Key Developments

Segmentation

By Source	By Flavor	By Distribution Channel	By Geography
Dairy Non-Dairy	Chocolate Vanilla Butterscotch Fruit Flavored Others	Retail Channels Supermarkets/Hypermarkets Gelato Shops and Ice Cream Parlors Online Channels Others Food Service Channels	North America (U.S., Canada, and Mexico) Europe (Germany, France, Italy, U.K., Spain, Russia, and the Rest of Europe) Asia Pacific (China, Japan, India, Australia, and the Rest of Asia Pacific) South America (Brazil, Argentina, and the Rest of South America) Middle East & Africa (UAE, Saudi Arabia, and the Rest of the Middle East & Africa)

Analysis by Source

By source, the market is divided into dairy and non-dairy.

The dairy segment is anticipated to maintain a significant share of the global gelato market, primarily driven by the rising consumer demand for premium and indulgent desserts. Gelato, which is made primarily from milk, sugar, and natural flavorings, is increasingly favored for its denser texture and lower fat content compared to traditional ice cream.

The rising awareness of health and environmental issues is propelling the demand for non-dairy options. Many consumers are adopting vegan lifestyles or seeking lactose-free products due to dietary restrictions. This shift is further supported by the growing popularity of flavors derived from plant-based ingredients such as almond, coconut, and soy. There is a notable trend toward unique and adventurous flavor profiles in non-dairy gelato, which appeals to a broad spectrum of consumers. Manufacturers are innovating continuously to introduce new flavors and formulations, catering to diverse dietary needs and preferences. For instance, in March 2023, Valsoia, one of Italy’s leading producers of plant-based products, launched a new line of authentic Italian plant-based Gelato. The new products are 100% vegan and available in flavors, including Triple Pistachio Mini Sticks and Espresso cones with chocolate chips.

Analysis by Flavor

By flavor, the market is subdivided into chocolate, vanilla, butterscotch, fruit flavored, and others.

The chocolate segment is expected to hold a major share of the global market. Chocolate is one of the most favored flavors in frozen desserts, including gelato. It appeals to a wide demographic due to its rich taste and indulgent nature. The chocolate flavor consistently ranks among the top choices for consumers, which drives its strong presence in gelato offerings. The versatility of chocolate allows for numerous variations, including dark chocolate, milk chocolate, and combinations with other flavors, such as hazelnut or caramel. This innovation keeps chocolate gelato relevant and exciting for consumers, contributing to its popularity.

The pistachio segment is expected to grow significantly over the forecast period. Consumers are increasingly seeking out healthier food options and pistachios are seen as a nutritious ingredient. Pistachio gelato offers a creamy, indulgent treat that is also packed with protein, fiber, and healthy fats. The rise of artisanal gelato shops and premium ice cream brands is fueling demand for high-quality, gourmet flavors such as pistachio. Consumers are willing to pay more for gelato made with premium ingredients and unique flavor combinations.

Analysis by Distribution Channel

By distribution channel, the market is categorized into retail channels and food service channels.

The retail channels segment is a significant contributor to the global gelato market, holding the largest share. The retail channels include supermarkets/hypermarkets, gelato shops and ice cream parlors, online channels, and others. Traditional gelato shops are still the most common way for consumers to purchase gelato worldwide. These storefronts offer a wide variety of flavors and an authentic gelato experience. Pre-packaged gelato sold in supermarkets and grocery stores is a growing segment, allowing consumers to enjoy gelato at home. Supermarkets are expanding their gelato offerings to meet increasing demand.

The food service channels segment is expected to grow significantly over the forecast period. Restaurants and cafés are incorporating gelato into their dessert menus, which is expected to boost sales. Gelato's versatility allows it to be used in various desserts, shakes, and as a standalone treat. This channel is projected to grow as dining out becomes more popular after the COVID-19 pandemic.

Analysis by Region

By region, the market is fragmented into Europe, Asia Pacific, North America, South America, and the Middle East & Africa.

Europe is poised to dominate the global gelato market, driven by its rich culinary heritage and increasing consumer preference for premium frozen desserts. Gelato originated in Italy and is deeply ingrained in the European culture, particularly in countries such as Italy and France, where artisanal techniques and high-quality ingredients are emphasized. This cultural affinity for gelato enhances its popularity across the continent. The proliferation of artisanal gelato shops and gelaterias across Europe is enhancing market accessibility and consumer engagement. These establishments often focus on unique flavor combinations and high-quality ingredients, further solidifying Europe’s leadership in the gelato segment. For instance, in January 2024, Brand of Brothers, a U.K.-based ice cream brand, expanded its product portfolio of frozen desserts by incorporating Remeo Gelato, an ultra-premium Italian gelato brand. This new strategy aimed to facilitate Remeo's expansion in the U.K. and international markets.

North America is expected to experience significant growth in the global gelato market. The rising trend of indulgence and premiumization in desserts is fostering the demand for artisanal gelato. Consumers are increasingly seeking high-quality, handcrafted products that align with the characteristics of gelato.

Key Market Players

The report includes the profiles of key players such as:

• Unilever Ltd. (U.K.)


• Minus30 (India)


• The Gelato Factory (India)


• Amore Gelato (India)


• G.S. Gelato (U.S.)


• Gelato Italia Ltd. (U.K.)


• Baci Gelato (U.S.)


• Firenzes Artisanal Gelato (Peru)


• General Mills (U.S.)

Key Developments

• In March 2024, Bauli S.p.A., an Italian food company, along with Tonitto 1939 S.p.A., a Premium quality Italian ice cream and sorbet manufacturer, launched new gelato flavors. The new products include panettone, pandoro, and croissant with apricot.


• In June 2023, G.S. Gelato, a manufacturer of gelato and non-dairy frozen desserts, expanded its manufacturing plant in Fort Walton Beach, U.S. The company added 25,000 square feet, bringing the total space at the plant to 65,000 square feet.