Unseasonable spring weather and a decline in summer tourism in some areas impacted overall consumption, though price growth slowed. The entire supply chain is now worth €4.7 billion.
Market Overview and Consumption Trends
In 2024, sales of artisanal gelato in Europe grew by 1%, reaching €11 billion in total revenue, up from €10.9 billion in 2023. The main markets, Italy and Germany, held steady, while other European countries showed more dynamic growth. However, certain external factors—including unfavorable spring weather and lower summer tourism in key regions—affected overall performance.
Despite these challenges, artisanal gelato remains a favorite among both residents and tourists, with the latter accounting for around 15% of total consumption in Italy, underscoring the close link between tourism and the gelato sector.
Pricing and Economic Trends
After years of sharp increases, gelato prices stabilized in 2024. The average price per kilogram now ranges between €20 and €28, with peaks of €32 in select shops. A small cone or cup averages €2.70, though prices can reach €5 in tourist-heavy city centers.
The main factors behind recent price increases include:
- Rising costs of raw materials (e.g. cocoa, sugar, fruit)
- Growing demand, supported by tourism and domestic consumption
- Increased labor costs and shortage of skilled workers
- Higher logistics and energy costs
Despite these economic challenges, the sector has maintained strong competitiveness thanks to high product quality and consumer loyalty, reinforcing its status as a symbol of Italian excellence worldwide.
The Role of Tourism
Tourism continues to be a key driver of gelato consumption, accounting for 15% of total consumption in Italy. However, domestic tourism declined in summer 2024, with a 3.6% drop in arrivals and a 1.4% decrease in overnight stays compared to 2023.
On the other hand, international tourism showed positive signs, with a 1.2% increase in arrivals and a 3% rise in stays, highlighting the continued international appeal of Italian gelato.
While extreme heat, spring storms, and economic uncertainty impacted domestic tourism, foreign visitors helped sustain gelato sales in major tourist destinations.
Labor Market Challenges
One of the biggest issues facing the sector is a shortage of skilled labor, which impacted many gelato shops, especially during peak seasons. Staffing challenges forced many businesses to reduce their opening hours, with negative effects on both revenue and customer satisfaction.
To address this issue, many gelato makers are revisiting workforce strategies, focusing on employee retention and improving working conditions. However, the cycle of reduced hours and lower service quality makes it difficult to implement quick solutions.
Climate Impact
Weather patterns also played a significant role in 2024, with regional variations across Italy:
- Northern Italy: Above-average rainfall and cooler temperatures led to decreased consumption, especially during midday hours.
- Central Italy: Variable weather caused fluctuating sales.
- Southern Italy: High temperatures and a lack of rain during the first nine months supported increased consumption, particularly in tourist hubs.
These differences highlight the need for gelato shops to adapt their strategies to local climate conditions to optimize sales.
The European Market
In 2024, the European artisanal gelato market grew by 1%, with Italy and Germany remaining the top markets. Countries like Spain, Poland, Austria, and France saw an increase in the number of gelato shops, helping to spread artisanal gelato culture more broadly.
Europe is now home to approximately 65,000 gelato parlours, employing over 300,000 people. Growth was also fueled by emerging markets and increased demand in countries with less established gelato traditions.
The Italian Market
In Italy, the sector’s revenue reached nearly €3 billion in 2024, with growth between 0.5% and 1% compared to 2023. The number of dedicated gelato shops remained stable at over 9,300, while pastry shops and bars that offer artisanal gelato bring the total number of outlets to over 39,000.
Shops located in tourist cities benefited the most from increased foreign tourism, especially in regions like Lazio (+13%), Sicily (+5%), and Campania (+3%).
The Italian Supply Chain
Italy’s leadership in artisanal gelato extends beyond shops to include ingredients, semi-finished products, and equipment manufacturing. In 2024, the ingredients segment generated €1.1 billion in revenue, with 67% exported abroad. The machinery and equipment sector also grew, reaching €670 million in revenue (+3% vs 2023).
Together, these segments form a supply chain worth over €4.5 billion, employing more than 120,000 people across Italy.
Conclusion
The Italian artisanal gelato market continues to prove itself resilient and innovative, capable of adapting to economic, climatic, and social challenges. Despite ongoing issues with tourism, staffing shortages, and weather variability, 2024 showed moderate growth and reaffirmed the global appeal of Italian gelato.
Looking ahead, the sector must continue to focus on quality, innovation, and sustainability to maintain its leadership and thrive in the face of future challenges.