The Collaborative International Dictionary of English v.0.48:

Handicraft \Hand"i*craft\ (h[a^]nd"[i^]*kr[.a]ft), n. [For
   handcraft, influenced by handiwork; AS. handcr[ae]ft.]
   1. A trade requiring skill of hand; manual occupation;
      handcraft. --Addison.
      [1913 Webster]

   2. A man who earns his living by handicraft; a
      handicraftsman. [R.] --Dryden.
      [1913 Webster]

WordNet (r) 3.0 (2006):

handicraft
    n 1: a work produced by hand labor [syn: handicraft,
         handcraft, handiwork, handwork]
    2: a craft that requires skillful hands