Gelato Market Size, Share & Industry Analysis, By Source (Dairy and Non-dairy), By Flavor (Vanilla, Chocolate, Berries, Fruits, Nuts, and Others), By Packaging (Impulse and Take-home), By Distribution Channel (Retail Channels {Supermarkets/Hypermarkets, Specialty Stores/Ice cream Parlors, Online Retail, and Others} and Food Service Channels), and Regional Forecast, 2025-2032

The global gelato market size was valued at USD 35.82 billion in 2024. The market is projected to grow from USD 37.83 billion in 2025 to USD 59.70 billion by 2032, exhibiting a CAGR of 6.73% during the forecast period. Europe dominated the gelato market with a market share of 39.84% in 2024.

Nestle SA, Unilever PLC, GS Gelato, General Mills, and Baci Gelato are the front-runners in the industry. They are adopting marketing strategies including innovative gelato offerings, geographical expansion, and mergers & acquisitions.

Gelato is a kind of frozen dessert or ice cream typically lower in fat and air content, originating from Italy. It is made up of milk, cream, and sugar; however, the proportion of cream in the product is less and it contains more milk. Additionally, the product has less proportion of air and offers a smooth, creamy, and dense texture. Owing to its rich texture and taste, the product is getting popular in the global space. Additionally, emerging health concerns among users are likely to opt for gelato over traditional frozen desserts, as it contains less fat. Furthermore, the expanding artisanal food trend, paired with consumer demand for premium products, is likely to drive the market expansion over the forecast period.

Global Gelato Industry Key Takeaways 

Market Size & Forecast:

• 2024 Market Size: USD 35.82 billion
• 2025 Market Size: USD 37.83 billion
• 2032 Forecast Market Size: USD 59.70 billion
• CAGR: 6.73% from 2025–2032

Market Share:

• Europe dominated the gelato market with a 39.84% share in 2024, driven by Italy’s origin of gelato, high consumption across European countries, and the presence of leading manufacturers.
• By source, dairy-based gelato holds the largest market share due to its rich taste, traditional preparation methods, and wide availability. By flavor, vanilla leads globally owing to its familiar taste and natural aroma.

Key Country Highlights:

• Italy: Leading producer and consumer of gelato, supported by traditional parlors and increasing per capita consumption.
• U.S.: Growth driven by millennials’ snacking habits, rising demand for premium products, and expansion of exotic gelato flavors.
• China: Rising middle-class population, disposable income, and popularity of Italian cuisine fuel gelato demand.
• India: Expansion of artisanal gelato shops and growing preference for premium frozen desserts drive market growth.
• Brazil: Urban millennials increasingly consume premium gelato as a treat, supporting market expansion.
• UAE & Saudi Arabia: Multicultural population and tourism boost demand for diverse gelato flavors.

MARKET DYNAMICS

Market Drivers

Increasing New Product Launches to Drive the Market Growth

The rise in demand for premium ice cream products forces producers to cater to the consumer demand with a comprehensive product portfolio. Therefore, industry players are actively involved in expanding their product offerings with new flavors. Moreover, they are introducing seasonal products, which induces consumers to try new flavors. Ice cream is now becoming the most popular dessert among youths and adolescents. Moreover, the availability of vast flavors and combinations of different flavors is allowing individuals, especially the youth, to select their favorite flavors. Therefore, companies are introducing new products in the gelato category. For instance, in April 2025, Baskin-Robbins, a global key ice cream brand, launched a new Gelato range in the Indian market. The newly launched Gelato Sundaes including Chocolate & Roasted Hazelnut, Berry Me in Cheesecake, and Mango & Cream. The company aimed to target health-conscious consumers and the youth consumer group.

Companies Entering the Industry to Expand their Product Offerings

The rising exposure to international cuisines and culinary trends through travels and social media is one of the key factors driving the product's popularity globally. Additionally, the surging popularity of unique and exotic flavors attracts adventurous consumers globally. Since the industry is exhibiting a significant growth opportunity, key food and beverage companies are entering the industry. For instance, in March 2023, Next Gen Foods, an emerging plant-based chicken producer, acquired Mwah, a dairy-free gelato startup, for an undisclosed amount. Through the acquisition, the company entered the artisanal frozen desserts industry. Such initiatives are anticipated to drive the global gelato market growth over the upcoming years.

Market Restraints

Availability of Substitutes and High Prices May Hamper the Market Growth

The product is specially crafted to reduce the fat content. During the air incorporation, manufacturers require specialized machinery and equipment. Therefore, manufacturers need to invest sufficient money to start a new venture. Additionally, as the product is considered under artisanal frozen desserts, the product prices are 2-3 times higher than conventional ice creams. The price factor may impact to entering to the new market, especially in developing nations such as Brazil and India. A higher price range of the product may hamper market growth. Furthermore, key gelato brands such as Häagen-Dazs, Ben & Jerry's, and Baskin-Robbins are offering unique flavored traditional ice cream at an affordable price range. The strong presence of substitute products with a lower price range will additionally slow down market growth over the upcoming years. 

Market Opportunities

Increasing Mergers & Acquisitions to Change the Industry Landscape

The increasing artisanal frozen dessert trend opens up opportunities for new entrants. Since the industry has a low barrier to new entrants, new brands are entering the market. It may create more opportunities for key players to expand their product offerings and presence in the regional market. Thus, major players are focusing to acquire regional popular brands. Additionally, the merger strategy will help to offer unique products by expanding its portfolio in the market. It will drive the global market in the upcoming years. For instance, in February 2024, Gelato d’Italia, an Italian ice cream manufacturer, acquired Giuntoli, a maker of ice creams and ice lollies. The acquisition will help the Gelato d’Italia to increase its production capacity, strengthen its position in Italy, and allow the company to grow further.

Gelato Market Trends

Increasing Artisanal Frozen Desserts Trend to Shape the Market in the Near Future

In the current scenario, consumers are willing to pay more for quality and premium products. Artisanal frozen desserts such as gelato are made from high-quality ingredients, which are often locally sourced or claimed as made by organic and natural ingredients, and with more attention to detail in the production process. Furthermore, the artisanal producers offer a unique taste with the native, familiar tastes. Factors such as evolving consumer preferences for premium products coupled with a unique taste profile drive consumers toward artisanal frozen desserts. The availability of artisanal ice cream shops will also drive the industry growth. According to the Ice Cream Alliance, a U.K. trade association, there were more than 1000 artisanal ice cream makers in the country in 2025. The aforementioned factors are likely to drive the global gelato market growth in the near future.

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Impact of COVID-19 on the Market

During the COVID-19 crisis, industry players experienced numerous hurdles and challenges in maintaining sustainable business operations. Due to lockdown and restrictions on large public gatherings, companies reduced the team strength in production plants. Moreover, with a decline in dairy products manufacturing, gelato producers faced an inadequate supply of raw materials. To overcome these challenges, producers needed to reframe their business strategies to achieve sustainability. Additionally, ice cream parlors and food service providers closed their operations due to lockdown and government restrictions. However, companies were refraining their strategies to maintain their business stability. It has helped companies to address challenges during the COVID-19 pandemic. For instance, in March 2020, Talenti, one of the prominent gelato manufacturers, launched three gelatos: Coffee Cookie Crumble, Banana Caramel Crunch, and Lemon Berry Pie.

SEGMENTATION ANALYSIS

By Source

Rich Taste and High Availability Of Dairy-Based Product Propels Segment to Hold The Higher Market Share

On the basis of source, the market is segmented into dairy and non-dairy. 

Gelato is traditionally made from milk and sugar. Milk offers a rich and creamy texture and taste to the product. Additionally, manufacturers are still using traditional methods and ingredients for product manufacturing and maintaining its authenticity. The dairy-based product is available significantly across retail channels, including supermarkets and online retailers. Furthermore, dairy-based products are less costly compared to vegan or non-dairy-based products. Therefore, the dairy segment holds the highest share of the global market.

The non-dairy segment is anticipated to grow at the highest CAGR during the forecast period. Non-dairy-based or vegan gelato is made from coconut, almond, oats, soy, and other plant-based sources. The increasing vegan trend across the world is likely to drive the product demand. Additionally, key players have begun offering vegan category products to attract a health-conscious and vegan consumer base. This is likely to drive the segment growth during the forecast period.

By Flavor

Vanilla Segment to Lead Owing to Familiar Taste and Natural Aroma

Based on flavor, the market is categorized into vanilla, chocolate, berries, fruits, nuts, and others.

The vanilla segment is anticipated to hold the largest share in the global market. Vanilla contains antioxidants and minerals such as calcium, manganese, magnesium, potassium, zinc, and iron. Along with its health benefits, vanilla offers a natural aroma to the product. Additionally, it is set with multiple flavors and enhances the taste.

The chocolate segment is anticipated to expand with the highest CAGR during the forecast period. According to the International Dairy Foods Association (IDFA) survey 2024, chocolate-flavored ice cream, including gelato, is the second popular flavor in the U.S. Chocolate gelato contains cocoa powder. The increasing awareness regarding the health benefits associated with cocoa is expected to support the steady growth of chocolate-flavored products. Moreover, the chocolate flavor is suitable with nuts, cookies, and brownies. Thus, the segment is anticipated to expand at the highest growth rate during the forecast period.

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By Packaging

High Convenience Packaging with Bulk Volume to Drive the Take-Home Segment’s Growth

Based on packaging, the market is segmented into impulse and take-home.

The take-home segment held the highest market share in 2024. Bulk quantity and appealing packaging attract consumers to opt for take-home products. Additionally, the convenience packaging, coupled with its ability to cater to larger groups, will drive the segment growth. This allows consumers to enjoy gelato at their place. Furthermore, this packaging often provides a more economical option compared to individual servings, driving the dominance of the segment.

The impulse segment is likely to expand at the highest growth rate during the forecast period. Owing to easy packaging, the impulse format of the product allows consumers to fulfil their snacks’ craving at several intervals. The rising popularity of convenient product packaging among consumers supports the impulse packaging segment’s growth.

By Distribution Channel

Wide Accessibility and Convenience to Drive the Retail Channel Segment’s Growth

Based on distribution channel, the global market is segmented into retail channels and food service channels. The retail channels include supermarkets/hypermarkets, specialty stores/ice cream parlors, online retail stores, and others.

The retail segment held the highest market share in 2024. Retail channels are becoming one of the popular shopping modes as a result of the availability of different brands in a single place. The convenience in product selection is a prominent aspect to enhance the sales of the product from this segment. Additionally, the online retailing segment is showing the fastest growing potentiality in retail channels, as it offers a hassle-free shopping experience to individuals.

The food service channels segment is anticipated to expand at the highest CAGR during the forecast period. Key players are entering the institutional, hotel, and cafe. It will significantly contribute to the industry's growth. Furthermore, consumers’ changing lifestyle and spending on eating out will drive the segment growth. For instance, in September 2021, Perfect Day, a dairy-identical gelato brand, entered the food service industry, including universities, hotels, and casinos, through partnering with Villa Dolce, an Italian family-owned artisanal gelato and sorbetto supplier. Through the partnership, the companies' several gelato products will be available across 2,000 food service providers in the U.S.

Gelato Market Regional Outlook

Geographically, the global market report covers analysis across North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

Europe

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The Europe region accounted for the highest market share, accounting for a value of USD 14.27 billion in 2024. Gelato primarily originated from Italy and is popular across Europe. The region is considered as a key gelato-producing region as many global leading manufacturers are based in Italy, Germany, Switzerland, U.K., and Denmark. Europe is one of the prominent producers as well as the largest consumers of the product globally.

In Italy, the per capita consumption of ice cream primarily increased due to the popularity of traditional Italian gelato paired with the introduction of new flavors within traditional ice cream categories. Additionally, a steady increase in the opening of gelato parlors across major cities in Italy is expected to support the growth of the industry in the upcoming years. According to the Italian Gelato.info, a dedicated portal for Italian gelato, there are more than 39,000 gelato parlors in Italy by the end of 2023.

North America

North America is one of the most prominent markets in the global market growing with the steady growth rate during the forecast period, primarily driven by the millennials' constantly changing snack and dessert consumption habits. The increasing popularity of on-the-go snacking consumption among American millennials pushes the demand for impulse format gelato, such as cones and pops. Additionally, industry players are developing novel exotic flavors in these categories, which would help spur the North American market growth.

In the region, the U.S. holds the largest share in the ice cream market and the country is expected to dominate throughout the forecast period, owing to increasing demand for premium ice cream products. According to the International Dairy Foods Association survey in 2023, more than two-fifths of the producers experienced a significant rise in the demand for premium ice cream products across the U.S. The trend of premiumization and change in consumer preferences for frozen desserts will drive the gelato consumption growth in the U.S.

Asia Pacific

The market in Asia Pacific is primarily driven by the rising middle-class population, coupled with escalating disposable income, and changing consumer preferences. Apart from this, the rapid urbanization in countries such as India, China, and Malaysia is one of the key factors contributing to the exponential growth of this region. China is a major ice cream-consuming country in the Asia Pacific. The increasing popularity of Italian cuisine and the demand for premium frozen desserts is likely to drive the product demand in China and India. Furthermore, increasing new gelato outlets across the Asian countries, including Australia, India, and China, is likely to drive the market growth.

South America

The South American market has been showing steady growth over the last decade and the demand for the product is primarily elevated among individuals living in urban cities across Brazil, Argentina, Chile, and Peru, among others. The millennials in urban areas perceived ice cream as an indulgence and automatic mood improver. Moreover, the individuals prefer the premium and artisanal frozen desserts as a treat on special occasions and celebrations. Such a shift in consumption trend in South American consumers pushes the product demand to the next level.

Middle East & Africa

The Middle East & Africa market is one of the lucrative markets for gelato manufacturers. The Middle East is a melting pot of numerous cultures and over 200 nationalities live in several cities such as the UAE and Saudi Arabia. Moreover, it is one of the popular tourist destinations, especially for Eastern European countries and Asian countries. The presence of multicultural consumers unlocks an opportunity for ethnic tastes and flavors. As a result, the product demand is anticipated to expand positively.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Introduce New Products by Key Players to Gain Stability in the Market

The global market is fragmented, with the presence of a few international brands and multiple regional players competing with each other to acquire a strong presence in the industry. Companies are focusing on introducing new products under their well-known brands to strengthen their market presence. For instance, in January 2025, Unilever PLC, one of the global ice cream manufacturers, launched its new product range under its ice cream brands Talenti, Breyers, Popsicle, Good Humor, Magnum, and Klondike. New launches feature bakery-inspired gelato, s’mores-themed treats, and character-branded frozen novelties. Additionally, companies are focusing on expanding their regional presence and acquiring local players to stay ahead in the competitive curve.

Key Players in the Market

The Nestle SA, Unilever PLC, GS Gelato, General Mills, and Baci Gelato are the leading companies in the market. The global market is fragmented, with the top 5 players accounting for a limited gelato market share.

List of Key Gelato Companies Profiled

• Unilever PLC (U.K.)
• Nestle SA (Switzerland)
• General Mills (U.S.)
• GS Gelato (U.S.)
• Minus 30 (India)
• Gelato Factory (India)
• Gelato Italia Ltd. (U.K.)
• Baci Gelato (U.S.)
• Firenzes Artisanal Gelato (Italy)

KEY INDUSTRY DEVELOPMENTS

• July 2025: Nova Artisan Gelato, an artisanal frozen dessert manufacturer, expanded its geographical presence by opening its shop in Bandra, Mumbai. It helps to reach out to their clientele and offer effective services to their clients.
• June 2025: Sammontana Gelato, an Italian gelato manufacturer, entered the U.S. market by launching its gelato range, including Bindi, Tre Marie, La Rocca, and Sammontana Gelati all’Italiana.
• March 2025: Ciao Café’, one of the bakery & gelato shops, expanded its geographical presence in the U.S. by opening its second outlet at 214 Thurman Ave, German Village.
• November 2024: Gelato d’Italia, one of the pioneers in the industry, introduced the Gelato d’Italia Production System (GPS), a new project that combines Italian gelato with cutting-edge technology. The company aimed to improve the production process and enhance the efficiency & gelato quality.
• July 2024: Ferrero International SpA, a well-known Italian confectionery manufacturer, launched a “Nutella gelato”, with convenient packaging. The newly launched product would be available on supermarket shelves across the European countries.

REPORT COVERAGE

The global market report provides in-depth market research and highlights crucial aspects such as global market trends, market dynamics, prominent companies, and applications. Besides this, the market statistics report also provides insights into the market trends and highlights significant industry developments.

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