The artisan gelato industry in Italy and Europe has been influenced by various market dynamics, particularly the impact of the COVID-19 pandemic in 2020. The pandemic significantly affected consumption patterns, especially in the first half of the year, with both Italy and other countries seeing a reduction in out-of-home consumption at bars, restaurants, gelaterias, and pastry shops. The collapse of local and international tourism, which has historically played a major role in the gelato market’s success, added to these challenges.
However, delivery services helped mitigate some of these losses. Artisan gelato emerged as one of the food sectors that experienced significant growth, with delivery services playing a crucial role in this shift. Although starting from relatively low historical numbers, the demand for home delivery of gelato increased as many consumers turned to delivery platforms during lockdown periods.
Recovery and Regional Variations
As lockdowns eased before the summer, consumption began to recover gradually. Consumers returned to gelaterias, showing particular interest in Italian excellence and classic gelato flavors. However, the pandemic’s effects were still felt as health concerns escalated once again in Europe during the second half of the year. Over 60% of the world’s artisan gelaterias are located in Europe, and the situation varied across different countries.
In particular, countries like Spain, Poland, and the Balkan states struggled due to prolonged health crises and the absence of tourism. Germany, supported by effective health policies and financial incentives, managed a partial recovery. As for Italy, while the summer season was somewhat good, it did not fully compensate for the losses from the first half of the year. The southern regions, especially Puglia and Sicily, saw sales in line with, or even higher than, the previous year. However, regions like Lombardy, major cities, and tourist hubs faced significant revenue drops. Moreover, expectations of extending the season were tempered, especially since winter has never been a key period for gelato consumption in Northern Italy.
Economic Impact of the Pandemic on the Gelato Industry
At the end of the year, Italy was expected to see a 30-35% reduction in the gelato sector’s revenue. This would have a ripple effect throughout the supply chain, affecting everything from raw ingredients to machinery manufacturers. Germany, the second-largest market for artisan gelato, was expected to see a smaller decline of about 25%, balanced by state support. Spain, the third-largest market, faced an even greater loss, with revenue expected to drop over 35% due to the significant absence of tourism.
For the first time in decades, artisan gelato consumption in Italy was forecasted to drop significantly, from €2.7 billion in 2018 to around €1.8 billion by the end of 2020. Across Europe, the overall market decline was similar, with revenue expected to fall from €9.6 billion in 2018 to about €6 billion by the end of 2020.
The Italian Leadership in the Artisan Gelato Sector
Despite these challenges, Italy remains the world leader in the artisan gelato market. In 2020, there were approximately 39,000 gelato outlets in Italy, including 10,000 specialized gelaterias and 29,000 bars and pastry shops serving gelato. These gelaterias employ around 150,000 workers, generating a €2.8 billion turnover, which accounts for approximately 30% of the European market.
Moreover, Italy is also a leader in the production of gelato ingredients and semifinished products. According to the Sigep Observatory, in 2018, 65 companies in Italy generated a €1.8 billion revenue in the production of gelato ingredients, including €800 million from semifinished products.
Italy’s influence extends beyond the borders of Europe. In the global market, countries like Argentina, Brazil, and the United States have seen a surge in the number of gelato shops, with a particularly strong presence in Asia, including China, South Korea, and Malaysia, where a large Italian diaspora has helped spread the popularity of artisan gelato.
Key Ingredients and Agricultural Impact
The Italian gelato industry has a significant impact on agricultural products, with 250,000 tons of milk, 70,000 tons of sugars, 23,000 tons of fresh fruit, and 32,000 tons of other raw materials used in gelato production. Notably, for hazelnut gelato, one of the most popular flavors, over 1,800 tons of Piedmont hazelnuts are purchased annually, representing approximately 30% of the regional hazelnut harvest. Additionally, 1,500 tons of Bronte pistachios, a key ingredient in another highly demanded flavor, are used, accounting for nearly 50% of the total Bronte pistachio harvest.
The Italian Machinery and Display Case Sector
Italy is also the global leader in the production of gelato machinery and display cases. In 2018, 13 Italian manufacturers controlled nearly 90% of the global market for gelato machinery, generating a €229 million turnover. Additionally, 11 companies specializing in gelato display cases contributed a further €252 million to the industry.
Conclusion: The Future of the Artisan Gelato Market
The artisan gelato sector faces challenges but remains a key player in the global food industry. While the pandemic negatively impacted sales in 2020, the resilience of the industry is evident in its ability to adapt to new market conditions, especially through the rise of home delivery services and the growing interest in high-quality, artisanal products. With Italy continuing to lead the market in production, distribution, and innovation, the future of the artisan gelato industry looks promising, as long as it can overcome the ongoing effects of the pandemic and continue to adapt to changing consumer behaviors.
Key Data
📌 Global Presence
- 🌐 Artisan gelato shops are present in 76 countries worldwide.
- Europe leads the market with over 65,000 gelato shops employing 315,000 people.
- 🌎 Outside Europe: ~43,000 gelato shops in countries like Argentina, USA, Brazil, China, South Korea, and Australia.
Italy: Global Leader
- 🏆 Italy has 39,000 gelato points of sale:
- 10,000 specialized gelato shops
- 29,000 bars/pastry shops with artisan gelato
- 👷♂️ Employs 150,000+ people
- 💰 Market value: €2.8 billion, ~30% of the European market
Germany
- 🏪 9,000 gelato shops (3,300 fully dedicated)
- 4,500 shops run by Italians
- 👷♂️ 20,000+ employees (50% of Italian origin)
Spain & 🇵🇱 Poland: Growing Fast
Other Key Markets
- UK: 1,100 gelato shops
- Austria: 900
- Greece: 680
- France: 450
🏭 Italian Leadership in Production
Ingredients & Semifinished Products (2018)
- 🧃 65 companies
- 💶 Revenue: €1.8 billion
- €800M from semifinished gelato products
Agricultural Impact
- 🥛 250,000 tons of milk
- 🍬 70,000 tons of sugar
- 🍓 23,000 tons of fresh fruit
- 🥜 32,000 tons of other raw materials
Hazelnut Gelato
- 1,800 tons of Piedmont hazelnuts used
- 3,500+ tons of imported hazelnuts
Pistachio Gelato (Bronte)
- 1,500 tons used
- 50% of Bronte’s total production
🛠️ Machines & Display Cases
Machinery
- 🏭 13 Italian manufacturers
- 🌍 90% global market share
- 💶 Revenue: €229 million
Display Cabinets
- 🧊 11 companies
- 💶 Revenue: €252 million
🔍 Summary
Italy is not only the birthplace of artisan gelato—it's the engine of the global gelato economy, leading in production, innovation, and export across every segment of the supply chain.
