The Collaborative International Dictionary of English v.0.48:

needlecraft \needlecraft\ n.
   1. An article or articles created or assembled by needle and
      thread; needlework.

   Syn: needlework.
        [WordNet 1.5]

   2. The art, process, or occupation of creating objects with
      needles, such as in crocheting, embroidery, quilting, or
      tapestry.
      [PJC]

WordNet (r) 3.0 (2006):

needlecraft
    n 1: a creation created or assembled by needle and thread [syn:
         needlework, needlecraft]
    2: work (such as sewing or embroidery) that is done with a
       needle [syn: needlework, needlecraft]