Gelato Market Forecasts to 2030 – Global Analysis By Type (Traditional, Low-Fat, Non-Dairy, Organic, Sugar-Free and Other Types), Flavor, Serving Style, Distribution Channel, Application and By Geography

According to Stratistics MRC, the Global Gelato Market is accounted for $11.9 billion in 2024 and is expected to reach $22.0 billion by 2030 growing at a CAGR of 10.7% during the forecast period. Gelato is an Italian-style ice cream that is known for its rich, creamy texture and intense flavor. It is made with a higher proportion of milk and a lower proportion of cream than traditional ice cream, resulting in a denser and smoother consistency. Unlike regular ice cream, gelato is churned at a slower speed, which incorporates less air and enhances its flavor. Typically served at a slightly warmer temperature, gelato offers a more vibrant taste and a velvety feel on the tongue.

Market Dynamics:

Driver:

Rising demand for premium desserts

The market is witnessing a rising demand for premium desserts, driven by increasing consumer preference for high-quality, indulgent treats. As consumers become more discerning, they seek unique flavors, natural ingredients, and healthier alternatives in their desserts. This trend has led to the emergence of artisanal gelato brands that focus on craftsmanship and authenticity. The premium segment is also expanding due to the growing popularity of dairy-free, organic, and sustainably sourced options, catering to health-conscious and environmentally aware customers.

Restraint:

Competition from substitutes

Competition from substitutes in the market, such as ice cream, frozen yogurt, and plant-based desserts, poses a challenge to growth. These alternatives often offer lower prices, broader availability, or cater to specific dietary preferences, like lactose-free or vegan options. As consumers increasingly explore substitutes, gelato faces pressure to innovate and maintain its unique appeal, impacting its market share and potentially limiting its customer base.

Opportunity:

Expansion of gourmet and specialty flavors

Gourmet and specialty flavors are growing significantly in the market as people want for distinctive, premium products. Artisanal gelato makers are experimenting with exotic ingredients, incorporating flavors like matcha, salted caramel, lavender, and pistachio, along with local and seasonal produce. This trend is driven by a demand for premium, customizable desserts, emphasizing indulgence and new taste experiences. As consumers’ palates evolve, gelato offers endless creative possibilities for flavor innovation.

Threat:

High production costs

High production costs in the market arise from the use of premium ingredients, specialized equipment, and labor-intensive processes. The need for fresh, quality components like organic milk, real fruit, and artisan flavors drives up expenses. Additionally, maintaining proper storage conditions and ensuring small-batch production to preserve quality adds further costs. These factors challenge gelato producers to balance price points while maintaining product excellence, potentially limiting profitability.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the market, leading to supply chain disruptions and reduced consumer spending. With restrictions on dining and tourism, many gelato parlors faced temporary closures, and demand shifted to takeout or home deliveries. Moreover, production delays and ingredient shortages hampered the ability to meet demand. However, as restrictions eased, there was a gradual recovery, with an increased focus on online sales and delivery services.

The classic flavors segment is expected to be the largest market share during the forecast period

The classic flavors segment is expected to account for the largest market share during the forecast period. Classic flavors remain a staple in the market, with timeless favorites like vanilla, chocolate, strawberry, and pistachio continuing to dominate. These traditional flavors offer a sense of familiarity and comfort, appealing to a wide range of consumers. Gelato makers often refine these classics using high-quality ingredients to elevate their taste. Despite the rise of innovative options, classic flavors maintain strong demand due to their enduring popularity and broad appeal.

The street vendors segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the street vendors segment is predicted to witness the highest growth rate. Found in high-traffic areas like festivals, tourist destinations, and busy city streets, they serve gelato in various forms such as cones, cups, and sandwiches. With the flexibility to cater to a wide range of tastes and preferences, these vendors create a fun, casual gelato experience, making the treat easily available for spontaneous indulgence, especially during warmer months.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share. Gelato’s popularity is rising due to its rich, creamy texture and lower fat content compared to traditional ice cream. The consumers are also embracing diverse flavors and health-conscious options, such as dairy-free and low-calorie varieties. This growth is supported by expanding gelato stores, food trucks, and online delivery platforms, catering to evolving consumer preferences.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. There is a growing inclination towards indulgent and convenient dessert options, with consumers seeking premium and artisanal gelato products. Additionally, rising health awareness among consumers is influencing the demand for gelato, as it is often perceived as a healthier alternative to traditional ice cream due to its lower fat content and denser consistency.

Key players in the market

Some of the key players in Gelato market include Unilever Ltd., General Mills, Ben & Jerry's, Minus30, Nestle, Mars, Amorino, Gelato Fiasco, Ciao Bella Gelato Company, G.S. Gelato, Turkey Hill, Dairy Queen, Cold Stone Creamery and Danone S.A.

Key Developments:

In November 2024, Mars introduced M&M's and SNICKERS ice cream products. The company used this year’s recent National Association of Convenience Stores (NACS) Show Expo in Las Vegas to showcase its latest treats, which the business revealed had been developed directly in response to consumer demand for a greater variety of flavours, tastes and textures across its portfolio.

In July 2024, Abu Dhabi’s biggest sovereign wealth fund is considering investing at least €1 billion ($1.1 billion) in Nestle SA’s ice cream joint venture, which includes brands like Haagen-Dazs, according to people familiar with the matter. The Abu Dhabi Investment Authority, which controls almost $1 trillion of assets, is working with advisers as it considers committing fresh capital to Nestle’s Froneri ice cream venture with buyout firm PAI Partners, the people said.

Types Covered:
• Traditional
• Low-Fat
• Non-Dairy
• Organic
• Sugar-Free
• Other Types

Flavors Covered:
• Classic Flavors
• Exotic/Innovative Flavors
• Seasonal Flavors

Serving Styles Covered:
• Cup
• Cone
• Stick
• Cakes
• Sandwiches

Distribution Channels Covered:
• Retail
• Foodservice
• Online
• Specialty Stores

Applications Covered:
• Street Vendors
• Tourism and Leisure
• Hotels and Resorts
• Restaurants and Cafes
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements