Gelato Growth and Popularity in the U.S.

Gelato and similar products must be examined within the context of the overall ice cream market of which it is a segment of. Gelato and its cousin sorbetto, which is gelato with water substituted for the milk and dairy product base, is a growing segment of the broader ice cream market which is itself expanding.

The ice cream market is defined as consisting of ice cream, artisan ice cream, frozen yogurt, impulse ice cream products, take-home ice cream products, and, increasingly, gelato as well as sorbetto products.

According to market analysts, the global ice cream market expanded by 8.7% in the first five years of the new millennium and is expected to expand by 11.5% by 2010. Global revenues for ice cream products which include gelato were an estimated $36 billion in 2005 of which the impulse sector of the ice cream market constituted $10.2 billion or 28% of the total global market. These are powerful trends in any industry and very promising for the gelato segment of the market.

Across the U.S. the ice cream market mirrors the global market in both market and revenue growth trends. Revenues derived from ice cream and ice cream related products grew by 7% during the first five years of this decade and are estimated to attain 9.3% growth rates by 2010.

Total ice cream market revenues in the U.S. reached $9.2 billion in 2005 of which take-home ice cream products constituted $6.1 billion of that total figure. Conversely, the impulse sector of the ice cream market in the U.S. was 14.3% of the total U.S. ice cream market or $1.3 billion of the overall market.

Most important for gelato business owners and consumers are the market indications of the increasing popularity of gelato retailers and producers in the ice cream market. Of the total U.S. ice cream market artisan ice cream, of which gelato is considered a component of, constituted 9.9% of the market while other market segments such as frozen yogurt comprised 9.4% of the overall market.

Not only is the ice cream industry massive, in terms of revenues, but all segments of the industry are seen as growing. As Jean Chatzky observes in a recent article entitled, Get the Scoop, where she cites an industry professional as saying, "There's a movement in America toward artisan ice creams." Thus, the gelato segment can be expected to continue to expand into the double digit percentages of market share within the ice cream industry as a whole.

As consumers are increasingly seeking forms of entertainment and recreation suitable for all family members closer to home, the growth and popularity of gelato are trends certain to continue to expand. Even the once lowly frozen yogurt segment reached $818 million in revenues in the U.S. which was a 7.4% growth rate over the previous year.

Gelato is a unique and healthy option to traditional ice cream products that is continuing to capture the fancy of U.S. consumers as they become educated to gelato's natural ingredients and vibrant flavors.

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