Brandy & Cognac Market Size - By Product Type (Very Special, Very Superior Old Pale, Extra Old, Beyond Age), By Price Level (Premium, Mainstream, Entry level), By Distribution Channel (Supermarkets, Bars, Restaurants, Club), Age & Forecast, 2023 – 2032

Brandy & Cognac Market Size

Brandy & Cognac Market size was valued at USD 12.3 billion in 2022 and is projected to exhibit over 5.3% CAGR between 2023 and 2032. Brandy and cognac are often associated with luxury and sophistication, attracting consumers who seek high-quality and premium alcoholic beverages for special occasions and gifting. As economies grow and middle-class populations expand in various regions, more consumers have discretionary income to spend on premium spirits like brandy and cognac.
 

Brandy and cognac offer a wide range of flavors, including rich and complex tasting notes. Consumers appreciate the unique taste profiles derived from the aging process in oak barrels. The rise of cocktail culture and mixology has led to an increased interest in using brandy and cognac as key ingredients in craft cocktails and mixers.
 

The premium nature of brandy and cognac makes these spirits susceptible to counterfeiting. Counterfeit products can damage brand reputation, consumer trust, and revenue for legitimate producers. The production of high-quality brandy and cognac involves lengthy aging processes and the use of oak barrels, leading to higher production costs. This can impact pricing and accessibility for some consumers. The brandy & cognac market is subject to various regulations related to production, labeling, and geographical indications. Thus, the high-end pricing and risks associated with brandy & cognac may drive down the acceptance rate, further hampering the business growth.
 

COVID-19 Impact

With lockdowns and restrictions in place, many restaurants, bars, and hotels were forced to close or limit operations. This led to a significant decline in on-premise consumption of brandy and cognac. Some consumers opted for more affordable spirits, while others shifted to at-home consumption, leading to changes in demand patterns for brandy and cognac. Thus, the reduced number of COVID-19 cases and implementation of subsequent strategies by government and non-government organizations is forecasted to drive the market growth.
 

Brandy & Cognac Market Trends

Consumers were increasingly seeking premium and high-quality spirits, driving the demand for premium brandy and cognac products. Brands were focusing on offering aged and limited-edition expressions to cater to discerning consumers' tastes. Consumers were showing a preference for craft and artisanal brandy and cognac, seeking products with unique flavor profiles and production methods. Smaller, boutique distilleries gained popularity among enthusiasts. There was a rising awareness and demand for sustainable and ethically sourced brandy and cognac.
 

Brandy & Cognac Market Analysis

The very special product size dominated around USD 4.9 billion in 2022. VS brandies and cognacs have a milder flavor profile, making them appealing to consumers new to brandy or those seeking a smoother taste. VS products are often more affordable than higher-age expressions, attracting budget-conscious consumers.
 

The young cognac segment held approximately 55% share of the brandy & cognac market in 2022 and is poised to observe lucrative pace by 2032. Young brandies and cognacs are more budget-friendly, attracting consumers who are new to the spirits or seeking more affordable options. The lighter and more versatile profile of young brandies makes them ideal for use in cocktails and mixed drinks.
 

Based on price level, the premium segment acquired a major market share in 2022 and is estimated to register 4.7% CAGR through 2032. Premium brandies and cognacs are known for their complex and refined flavor profiles, attracting consumers seeking a more sophisticated tasting experience. Thus, the high-quality services and growing number of brandy & cognac at places are anticipated to expedite the business growth.
 

The liquor segment of brandy & cognac market is predicted to grow at a commendable pace by 2032. Liquor stores and retail outlets offer a convenient and easily accessible shopping experience for consumers seeking brandy and cognac. These stores typically carry a wide range of brands and expressions, allowing consumers to explore different options and find their preferred choices.
 

U.S. dominated the North American region with majority market share and a revenue of USD 3.5 billion in 2022. North American consumers are increasingly drawn to premium and sophisticated spirits, seeking higher-quality brandy and cognac options for special occasions and premium drinking experiences.
 

Brandy & cognac Market Share

Some of the major market players operating in the brandy & cognac market are

• Abbott Laboratories
• BAG Healthcare GmBH
• Bio-Rad Laboratories, Inc
• Danaher Corporation
• Diagnostica Stago
• DiaSorin S.p.A.
• F. Hoffmann-La Roche Ltd
• Grifols S.A.
• Hologic, Inc.
• Immucor Inc.
• Merck KGaA
• Ortho Clinical Diagnostics
• Quotient Ltd
• Thermo Fisher Scientific Inc.

These participants are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
 

Brandy & cognac Industry News:

• In November 2022, Louis XIII and Leela Palace Delhi announced their first ever collaboration on a full meal cognac pairing. The cognac is served in a bell shaped crystal glass before which can be collectively enjoyed with the meal. 
   

This market research report on brandy & cognac includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Units from 2018 to 2032, for the following segments:

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Market, By Product type

• Very Special
• Very superior old pale
• Extra Old
• Beyond Age

Market, By Age

• Young Cognac
• Mature Cognac

Market, By Price Level

• Premium Segment
• Mainstream Segment
• Entry level Segment

Market, By Distribution Channel

• Retail Stores
• Supermarkets
• Liquor Shops
• Bars
• Restaurants
• Club

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt