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The market for cognac and brandy has undergone significant transformations in recent years, reflecting changing consumer preferences, global economic shifts, and evolving marketing strategies within the spirits industry. One noticeable trend in this market is the increasing demand for premium and aged varieties. Discerning consumers are showing a growing appreciation for the craftsmanship and complexity that come with aged spirits, leading to a surge in the popularity of premium cognacs and brandies. This trend is driven by a desire for unique and sophisticated drinking experiences, as consumers seek out products with distinct flavor profiles and historical significance.
Another key market trend is the expanding global reach of cognac and brandy. Historically associated with regions like France, these spirits are now gaining popularity in emerging markets across Asia and Latin America. Rising incomes, changing lifestyles, and an increasing interest in premium spirits contribute to this global expansion. As a result, established brands and new entrants are strategically positioning themselves to cater to the diverse tastes and preferences of consumers in these growing markets.
The market is witnessing innovation in product offerings, with producers experimenting with flavor profiles, cask finishes, and limited editions. Craft distilleries are emerging as key players in this trend, introducing unique expressions that resonate with consumers seeking authenticity and a more personalized drinking experience. Flavor-infused brandies, artisanal blends, and innovative aging techniques are becoming more prevalent as producers strive to differentiate their offerings in a competitive landscape.
The rise of e-commerce and digital marketing is influencing the cognac and brandy market, providing producers with new avenues to connect directly with consumers. Online platforms and social media have become crucial for brand visibility, engagement, and even direct-to-consumer sales. This digital shift has also allowed brands to communicate their stories, craftsmanship, and heritage to a wider audience, fostering a deeper connection with consumers.
Sustainability is emerging as a significant consideration within the cognac and brandy market. Both consumers and producers are becoming increasingly aware of the environmental impact of the spirits industry. Producers are adopting sustainable practices in sourcing raw materials, production processes, and packaging, aligning with the growing global emphasis on environmental responsibility. This trend is not only a response to consumer preferences but also a strategic move to enhance brand image and long-term viability in a socially conscious market.
The cocktail culture is playing a vital role in driving the cognac and brandy market forward. Mixologists and consumers alike are exploring creative ways to incorporate these spirits into a variety of cocktails, expanding their versatility beyond traditional sipping occasions. This trend is particularly evident in the rise of craft cocktails and the growing popularity of classic recipes that feature cognac and brandy as key ingredients.
However, challenges persist in the form of regulatory complexities, trade tariffs, and market volatility. The spirits industry is subject to regulatory changes that can impact production, distribution, and marketing strategies. Trade disputes and tariffs can affect international sales and distribution, creating uncertainties for producers operating in a global market. Additionally, economic fluctuations and geopolitical events can impact consumer spending patterns and preferences, influencing the overall trajectory of the cognac and brandy market.
Cognac Brandy Market Highlights:
Global Cognac and Brandy Market Overview
Cognac and Brandy Market Size was valued at USD 12.1 Billion in 2023. The Cognac and Brandy industry is projected to grow from USD 12.8 Billion in 2024 to USD 19.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.70% during the forecast period (2024 - 2032). The expanding use of cocktail culture in conjunction with the escalating socialising at bars and restaurants, the rising demand for organic alternatives, the growth of food tourism, and the expansion of culinary services, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Cognac and Brandy Market Trends
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The increasing adoption of cocktail culture in confluence with the rising trend of socializing at restaurants and bars is driving the market growth
One of the key factors driving the growth of the worldwide brandy market is the expanding popularity of cocktail culture in tandem with the rising trend of socialising in restaurants and bars, especially among young people. Another significant element driving growth is the rising demand for premiumization in the food and beverage (F&B) business as well as the rising popularity of gourmet cooking. In addition, the industry is expanding as a result of growing demand for organic alternatives, food tourism, and culinary services.
The situation has changed as a result of the recent rise in demand for premium spirits experiences, opening up new opportunities for the cognac business to grow both in terms of value and volume. However, it will be interesting to observe how the well-known brands in the cognac industry will continue to innovate and pave the way for new competitors to strengthen their position in the market. The key driver of the cognac and brandy market's expansion is cognac's exclusivity. In addition, brandy is produced using the fermented juice of several fruits, including cherries, plums, and apples.
A diverse spectrum of consumer bases are drawn to these variations. Due to the increasing demand from customers, several small taprooms and brewers are experimenting with flavours. The occasions for serving and enjoying various cognacs are also evolving significantly. Cognac variations seem to be pushing it into regular drink cabinets of North American consumers, moving from being a traditional digest and a casual drink for special occasions. Due to the fact that premium alcohol kinds undergo laborious distillation procedures in addition to being infused with high-quality ingredients, demand for premium spirits continues to soar.
New brandy-based cocktails are being added to the menus of an increasing number of food service corporations as part of a campaign to increase in-store foot traffic. Given that cognac provides a window of opportunity for food service operators in terms of flavour and visual experiments, cognac continues to be by far one of the top choices for the manufacture of brandy-infused drinks. Craft alcohol is quickly gaining popularity among consumers since it is made by authorised distilleries and has the label "reliability." With a strong belief that craft spirit sales can perform as well as, if not better than craft beer, experts predict an upbeat future for the industry. Thus, driving the Cognac and Brandy market revenue.
Cognac and Brandy Market Segment Insights
Cognac and Brandy Type Insights
The Cognac and Brandy Market segmentation, based on type, includes value, premium, high-end premium, and super premium. Premium segment accounted for the largest revenue share in 2022. These premium alcoholic beverages are in strong demand, which reflects adult consumers' continued preference for higher-end distilled spirits products across most categories. For instance, Irish cognac and brandy are increasing in value and volume by double digits, 11.3 and 12.8 respectively. The super-premium demand climbed by 45% in a year, while the income for such price points increased by 7.1% and 6.2%, respectively. For those who are always suited for infrequent alcohol usage throughout their entire lives, premium cognac and brandy alcohol is also seizing the market. This market expanded by 25% in a single year, while its revenue increased by 15.75% during the anticipated period.
Cognac and Brandy Distribution Channel Insights
The Cognac and Brandy Market segmentation, based on distribution channel, includes on-trade and off-trade. On-trade segment dominated the Cognac and Brandy Market in 2022. This is linked to the expansion of numerous facilities, including pubs, restaurants, hotels, and nightclubs, that cater to on-premise consumption. While "off-trade" refers to establishments like supermarkets, off-licenses, shops, and internet businesses that sell spirits for consumption away from a venue. Both markets are expanding steadily with a negligible percentage difference, but the on-trade market is expanding faster because more than 35% of the world's population enjoys travelling to different locations to enjoy alcohol with their friends and family.
Figure 1: Cognac and Brandy Market, by Distribution Channel, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Cognac and Brandy Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Cognac and Brandy Market dominated this market in 2022 (45.80%). This is a result of rising distilled spirits consumption in developed nations like the US and Canada; the Distilled Spirits Council of the US (DISCUS) reported that distilled spirits sales in the US increased by 5.45% in 2021 to reach USD 29.5 billion. Further, the U.S. Cognac and Brandy market held the largest market share, and the Canada Cognac and Brandy market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: COGNAC AND BRANDY MARKET SHARE BY REGION 2024 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Cognac and Brandy market accounted for the healthy market share in 2022. This is because brandy is becoming more and more popular in beverages and sweets. Additionally, the demand is linked to increased youth disposable income, premium and artisan spirits use, and both. Further, the German Cognac and Brandy market held the largest market share, and the U.K Cognac and Brandy market was the fastest growing market in the European region
The Asia Pacific Cognac and Brandy market is expected to register significant growth from 2023 to 2032. Rapid urbanisation and an increasing consumer preference for high-end spirits are to blame for this. According to Bureau National Professional du Cognac (BNIC), cognac shipments to China increased by 5.5% in value and 8.2% in volume between 2022 and 2027. Moreover, China’s Cognac and Brandy market held the largest market share, and the Indian Cognac and Brandy market was the fastest growing market in the Asia-Pacific region.
Cognac and Brandy Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Cognac and Brandy market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cognac and Brandy industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Cognac and Brandy industry to benefit clients and increase the market sector. In recent years, the Cognac and Brandy industry has offered some of the most significant advantages to medicine. Major players in the Cognac and Brandy market, including Remy Martin, Hennessy LVMH, Pernod Ricard, Radico Khaitan Ltd., Naud Spirts & Distillery, Emperador Distillers Inc, Suntory, Meukow, Cognac, Thomas Hine & Co., and Maison Ferrand, are attempting to increase market demand by investing in research and development operations.
Wines and spirits are produced and distributed by Remy Cointreau SA (Remy). It offers wine, champagne, cognac, liqueur, tequila, mescal, vodka, gin, whisky, rum, and brandy. Remy Martin, Louis XIII, Cointreau liqueur, Passoa, Octomore, Westland, St. Remy brandy, Mount Gay rum, and single malt whiskies Bruichladdich, Port Charlotte, The Botanist, Domaine des Hautes Glaces, Belle de Brillet, Telmont, and Metaxa are just a few of the labels that the corporation sells products under. It also offers distribution for independent brands. There are Remy production plants in the US, Turkey, Scotland, France, and Caribbean Islands. The Americas, the Middle East, Africa, Asia-Pacific, and Europe are all areas where it conducts business. The headquarters of Remy are in Cognac, France. The first-ever partnership between Louis XIII and Leela Palace Delhi on a full dinner cognac pairing was announced in November 2022.
Tilaknagar Industries Ltd (TI) produces, sells, and distributes alcoholic beverages. The company offers whisky, brandy, rum, vodka, and gin as part of its product line. Mansion House Whisky, Senate Royale, Mansion House Brandy, Madiraa, Senate Royale Red, Blue Lagoon, Courrier Napoleon Green, and Courrier Napoleon Red are the labels under which it sells its goods. The business sells its goods directly to customers, through distributors, and through companies. It sends goods to places including Europe, the Middle East, Africa, and East and South-East Asia. In the Indian states of Telangana, Jammu, Kerala, Karnataka, Andhra Pradesh, Odisha, West Bengal, and Assam, the corporation runs manufacturing facilities. The headquarters of TI are located in Mumbai, Maharashtra, India. Tilaknagar Industries, the owner of the Mansion House flagship brand, announced the debut of their new brandy in September 2022. The "Ugni Blanc" grapes used to make the Mansion House Reserve French Style Brandy are hand-picked in India's Sahyadris.
Key Companies in the Cognac and Brandy market include
- Remy Martin
- Hennessy LVMH
- Pernod Ricard
- Radico Khaitan Ltd.
- Naud Spirts & Distillery
- Emperador Distillers Inc
- Suntory
- Meukow Cognac
- Thomas Hine & Co.
- Maison Ferrand
Cognac and Brandy Industry Developments
July 2022 The "Malabar brandy" is being sold by BEVCO Outlet, a state-run business in Kerala, and is being made at the Malabar distillery in the Palakkad area.
April 2021 Burlington's Very Old Pale reserve French grape brandy's new debut was announced by Mohan Brothers to the Indian market. Nine further brandy varieties with various flavours were also introduced by the company.
Cognac and Brandy Market Segmentation
Cognac and Brandy Type Outlook
- Value
- Premium
- High-end Premium
- Super Premium
Cognac and Brandy Distribution Channel Outlook
- On-Trade
- Off-Trade
Cognac and Brandy Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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