How Has The Cognac And Brandy Market Size Evolved In Recent Years?
The cognac and brandy market has seen considerable growth due to a variety of factors.
•There has been a robust growth in the cognac and brandy market in recent times. The market is projected to increase from $14.97 billion in 2024 to $15.79 billion in 2025, with a compound annual growth rate (CAGR) of 5.5%.
Factors such as tradition and heritage, the global expansion of consumer tastes, the perception of luxury and status, as well as cultural and social relevance, and the emergence of mixology have contributed to the growth experienced during the historic period.
What Are The Estimated Market Size And Expected Annual Growth Rates For Global Cognac And Brandy Market?
The cognac and brandy market is expected to maintain its strong growth trajectory in upcoming years.
• The market for cognac and brandy is predicted to experience robust expansion in the upcoming years. The market size is set to rise to $19.79 billion by 2029, with a compound annual growth rate (CAGR) of 5.8%.
Factors contributing to the growth in the forecast period include intensifying premiumization trend, the surge in emerging markets, the prevalence of e-commerce and online retailing, the increasing popularity of craft and artisanal manufacturing, and cultural influences shaping flavor profiles. Key trends to watch for in this period include advances in packaging, experiments and blends involving flavors, engaging brand experiences, and joint ventures with mixologists and chefs.
Which Drivers Are Accelerating Growth In The Cognac And Brandy Market?
The cognac and brandy market is anticipated to experience significant growth due to the increasing demand for craft beverages. Craft beverages are subtly constructed, traditionally made, independent concoctions where cognac and brandy play an important role in slowing down the aging process, managing weight, and treating respiratory problems. Studies have shown that moderate brandy consumption can assist with sleep issues and lead to better sleep routines. Furthermore, it has been linked to heart health, ensuring the heart functions appropriately. For example, the Brewer's Association, a non-profit trade organization from the US, reported in April 2024 that there was a record number of craft breweries in operation, totaling 9,761. This number includes 2,092 microbreweries, 3,502 brewpubs, 3,910 taproom breweries, and 257 regional breweries. Ultimately, the overall tally of functioning breweries escalated to 9,906 in the United States, a rise from 9,824 in 2022. This growing demand for craft beverages is, therefore, fueling the expansion of the cognac and brandy market.
What Are The Core Segments Of The Global Cognac And Brandy Market?
The cognac and brandy market covered in this report is segmented –
1) By Product: Cognac, Armagnac, Spanish Brandy, Pisco
2) By Price: Value, Premium, High-End Premium, Super Premium
3) By Application: Household, Commercial
4) By Distribution Channel: On Trade, Off Trade
Subsegments:
1) By Cognac: VS (Very Special), VSOP (Very Superior Old Pale), XO (Extra Old), Other Age Classifications
2) By Armagnac: VS (Very Special), VSOP (Very Superior Old Pale), XO (Extra Old), Vintage Armagnac
3) By Spanish Brandy: Brandy de Jerez, Other Regional Varieties
4) By Pisco: Pisco Sour, Acholado, Mosto Verde
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Which Emerging Trends Are Reshaping The Cognac And Brandy Market Size?
The main trend gaining traction in the cognac and brandy industry is product innovation. To maintain their market standing, firms in this business are embracing new technological advancements. For example, in November 2023, Tamworth Distilling, a distillery based in New England, introduced an unusual, limited-edition trout-flavored brandy dubbed House of Tamworth Saison De Frai. The brandy draws its inspiration from the Swift River that runs alongside the distillery; it's produced using smoked trout, maple syrup, and apple brandy. The trout-flavored brandy is part of Tamworth Distilling's ongoing series of experimental spirits—also featuring a roast-turkey-flavored whiskey. The House of Tamworth Saison De Frai expression stands out with its unique flavors, showcasing the distillery's commitment to creativity and innovation.
Who Are the Key Players in the Cognac And Brandy Market?
Major companies operating in the cognac and brandy market include:
• Hennessy LVMH
• Diageo Plc.
• Suntory Holdings Limited
• Pernod Ricard SA
• E & J Gallo Winery
• Beam Suntory Inc.
• Campari Group
• Remy Martin XO
• United Spirits Limited
• Emperador Distillers Inc.
• Martell and Company SA
• Radico Khaitan Limited
• Tilaknagar Industries Ltd.
• Miguel Torres SA
• Korbel Winery
• Copper and Kings
• Courvoisier SAS
• Louis Royer SAS
• Asbach GmbH
• Global Spirits
• Camus Cognac
• Naud Spirits & Distillery
• Meukow Cognac
• Thomas Hine & Co
• Paul Masson
• Christian Brothers
• Branded Spirits Limited
• Delamain Cognac
• A. de Fussigny
• J.P. Chenet
What are the Regional Insights into the Cognac And Brandy Market?
North America was the largest region in the cognac and brandy market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cognac and brandy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
