I will go against the grain and say no, there isn't enough demand for handmade products, and there are valid reasons for this. Some people don't think it's fair or ethical for mass manufactured "craft" items to sell faster and in higher quantities than actual craft items. They believe this type of artisan should be paid more than machine work or sweat shop artisan. I actually wish it were so because I do value traditional handmade crafts, but they are more of an investment and an extra expense.
This! Also, handmade products are better for the environment and buying handmade supports the local community/economy. Many people care about this and take it into consideration when making purchases.
@sarahk said it best - Etsy is definitely the best example here and if you want to sell handmade products you ought to check it out.