PUBLISHER: The Business Research Company | PRODUCT CODE: 1427759
PUBLISHER: The Business Research Company | PRODUCT CODE: 1427759
Cognac and brandy are both distilled spirits derived from fruit juice, although cognac specifically refers to a type of distilled fruit juice with distinct characteristics. Brandy is recognized for its potential to slow the effects of aging, assist in weight management, and aid in treating respiratory conditions. Cognac is versatile in various beverages, adds excellent flavor to sauces for dishes such as steak and veal, and enhances the taste of desserts.
The primary product types within the category of cognac and brandy include cognac, armagnac, Spanish brandy, and pisco. Cognac specifically denotes high-quality grape brandy produced in the Cognac region of France. These products often come with varying price classifications such as value, premium, high-end premium, and super premium, catering to both household and commercial consumers. Distribution of these products typically occurs through channels known as on-trade (e.g., bars, restaurants) and off-trade (e.g., retail stores).
The cognac and brandy market research report is one of a series of new reports from The Business Research Company that provides cognac and brandy market statistics, including cognac and brandy industry global market size, regional shares, competitors with a cognac and brandy market share, detailed cognac and brandy market segments, market trends and opportunities, and any further data you may need to thrive in the cognac and brandy industry. This cognac and brandy market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The cognac and brandy market size has grown strongly in recent years. It will grow from $14.17 billion in 2023 to $14.97 billion in 2024 at a compound annual growth rate (CAGR) of 5.6%. The growth observed in the historical period can be attributed to several factors. These include the emphasis on tradition and heritage associated with cognac and brandy production, the globalization of consumer tastes and preferences leading to increased demand, the perception of these spirits as symbols of luxury and status, their cultural and social significance in various regions, and the growing trend of mixology, where these spirits are utilized in innovative cocktail creations.
The cognac and brandy market size is expected to see strong growth in the next few years. It will grow to $18.58 billion in 2028 at a compound annual growth rate (CAGR) of 5.6%. The anticipated growth in the forecast period can be linked to several key factors. These encompass the premiumization trend, where there is an increasing demand for higher-quality and premium cognac and brandy products, the growth potential in emerging markets, the expanding influence of e-commerce and online retailing in the spirits industry, the rising popularity of craft and artisanal production methods, and the impact of cultural influences on flavor profiles and consumer preferences. Key trends expected in this period include innovations in packaging to enhance product appeal, ongoing experimentation with flavors and infusions to create unique and diverse offerings, the development of interactive brand experiences to engage consumers, a stronger emphasis on heritage and terroir to highlight product origins and quality, and collaborations between spirits brands, mixologists, and chefs to create new and exciting beverage experiences.
The cognac and brandy market is anticipated to experience growth driven by the increasing demand for craft beverages. Craft beverages, characterized by small-scale, traditional production methods and independent brewing, incorporate cognac and brandy for their ability to slow the signs of aging, regulate weight, and address respiratory difficulties. Moreover, moderate brandy consumption has been linked to improved sleep patterns and heart health benefits. In April 2021, the Brewers Association reported that the number of active craft brewers in the US reached a record high of 8,764, comprising microbreweries, brewpubs, taproom breweries, and regional craft breweries. This surge in craft beverage demand underscores the growth prospects for the cognac and brandy market.
The cognac and brandy market is poised for expansion due to the burgeoning growth of the food service industry. The food service industry, encompassing businesses engaged in the preparation, distribution, and sale of food and beverages, integrates cognac and brandy into its offerings to elevate culinary experiences. These spirits are utilized for cooking, baking, and crafting sophisticated beverages. According to a USA Today article in August 2023, the U.S. restaurant industry reported $898 billion in sales in 2022, marking a notable increase of $166.5 billion compared to 2021. This robust growth in the food service sector serves as a driving force for the cognac and brandy market.
A prominent trend in the cognac and brandy market is the emphasis on product innovation, with companies strategically leveraging new technologies to maintain their competitive positions. An illustrative example of this trend is Tamworth Distilling, a New England-based distillery that introduced a distinctive limited-edition trout-flavored brandy named House of Tamworth Saison De Frai in November 2023. This unconventional brandy, inspired by the Swift River near the distillery, incorporates smoked trout, maple syrup, and apple brandy, showcasing Tamworth Distilling's commitment to experimentation and creativity. The House of Tamworth Saison De Frai represents a unique expression in the market, reflecting the distillery's dedication to inventive spirits, which also includes other experimental offerings such as roast-turkey-flavored whiskey.
Major players in the cognac and brandy markets are actively pursuing the development of premium brandy, exemplified by Mansion House Chambers, as a strategic approach to maintaining market prominence. Tilaknagar Industries Limited, an India-based beverage company, introduced Mansion House Chambers in November 2023. This premium brandy is characterized by complex fruity aromas and delicate oak notes, offering a smooth and velvety texture. The unique packaging of Mansion House Chambers, featuring a meticulously sculpted cut-glass bottle, communicates opulence, exclusivity, and luxury. This focus on premiumization aligns with the broader trend of elevating product offerings to cater to evolving consumer preferences in the cognac and brandy market.
In September 2023, International Beverage, a United Kingdom-based group of drinks brands, successfully acquired Larsen Cognac business from the Anora Group plc. The financial details of this acquisition were not disclosed. This strategic move by International Beverage is an integral part of its strategy to expand its portfolio of premium spirits brands and strengthen its global distribution network, with the overarching goal of achieving substantial growth on a global level. Anora Group PLC, headquartered in Finland, is primarily engaged in the production of distilled beverages and wines.
Major companies operating in the cognac and brandy market report are 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
North America was the largest region in the cognac and brandy market in 2023. 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.
The countries covered in the cognac and brandy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The cognac and brandy market consists of sales of calvados, pisco, and applejack. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Cognac And Brandy Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cognac and brandy market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cognac and brandy ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cognac and brandy market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.