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Global Cognac and Brandy Market Size was valued at USD 12.2 Billion in 2022. The Cognac and Brandy market industry is projected to grow from USD 12.4 Billion in 2023 to USD 19.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.30% during the forecast period (2023 - 2032). The increased 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.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
One of the primary factors driving the expansion of the worldwide brandy market is the increased popularity of cocktail culture in combination with the rising trend of socialising in restaurants and bars, especially among young people. Another key driver driving growth is the increased desire for premiumization in the food and beverage (F&B) market as well as the expanding popularity of gourmet cuisine. In addition, the industry is rising as a result of growing demand for organic alternatives, food tourism, and culinary services.
The scenario has altered as a result of the recent surge in demand for premium spirits experiences, opening up new chances for the cognac company to grow both in terms of value and volume. However, it will be interesting to monitor how the well-known companies in the cognac sector will continue to develop and open the way for new competitors to strengthen their position in the market. The major driver of the cognac and brandy market's expansion is cognac's exclusivity. In addition, brandy is manufactured utilizing the fermented juice of numerous fruits, including cherries, plums, and apples.
A vast spectrum of consumer bases are drawn to these variants. Due to the increased demand from customers, some small taprooms and brewers are experimenting with varieties. The occasions for serving and enjoying diverse cognacs are also evolving dramatically. Cognac varieties 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 sorts endure difficult distillation operations in addition to being infused with high-quality ingredients, demand for premium spirits continues to increase.
New brandy-based cocktails are being added to the menus of an increasing number of food service firms as part of an effort to improve in-store foot traffic. Given that cognac gives 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 creation of brandy-infused drinks. Craft alcohol is gradually gaining popularity among consumers since it is created by authorised distilleries and bears the label "reliability." With a strong assumption that craft spirit sales can perform as well as, if not better than craft beer, analysts foresee an enthusiastic future for the business. Thus, driving the Cognac and Brandy market revenue.
The global 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 significant demand, which underscores adult consumers' sustained preference for higher-end distilled spirits products across most categories. For instance, Irish cognac and brandy are expanding in value and volume by double digits, 11.3 and 12.4 respectively. The super-premium demand soared by 45% in a year, while the income for such price points increased by 7.1% and 6.2%, respectively. For individuals who are always suited for infrequent alcohol intake throughout their entire lives, premium cognac and brandy alcohol is also overtaking the market. This market expanded by 25% in a single year, while its revenue increased by 15.75% throughout the expected period.
The global Cognac and Brandy market segmentation, based on Distribution Channel, includes on-trade and off-trade. On-trade segment dominated the global Cognac and Brandy market in 2022. This is related to the growth of multiple establishments that cater to on-premise consumption, such as bars, restaurants, hotels, and nightclubs. While "off-trade" refers to enterprises that sell alcoholic beverages for use away from a venue, including supermarkets, off-licenses, stores, and online retailers. Although there isn't much of a difference in the percentage growth rates of the two markets, the on-trade industry is growing faster since more than 35% of people worldwide like traveling to different places to consume alcohol with their friends and family.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. In 2022, this market was dominated by the North American cognac and brandy market (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, In the North American area, the U.S. Cognac and Brandy market had the biggest market share, while the Canada Cognac and Brandy market had the quickest rate of expansion.
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.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
In 2022, a sizable portion of the cognac and brandy market was in Europe. This is due to brandy's rising popularity in desserts and beverages. The demand is also related to rising youth disposable income, consumption of premium and artisan spirits, and both. Further, In the European region, the German Cognac and Brandy market had the biggest market share, and the U.K. Cognac and Brandy market had the quickest rate of growth.
From 2023 to 2032, the Asia Pacific Cognac & Brandy market is anticipated to increase significantly. This is due to the rapid urbanization and rising customer taste for premium spirits. Between 2022 and 2027, cognac exports to China rose by 5.5% in value and 8.2% in volume, according to Bureau National Professional du Cognac (BNIC). Moreover, In the Asia-Pacific region, the Indian Cognac and Brandy market had the quickest rate of growth while China's Cognac and Brandy market had the greatest market share.
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Cognac and Brandy market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Cognac and Brandy sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Cognac and Brandy industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Cognac and Brandy sector. 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.
Remy Cointreau SA (Remy) produces and sells wines and alcoholic beverages. Wine, champagne, cognac, liqueur, tequila, mescal, vodka, gin, whisky, rum, and brandy are all available. A few of the brands that the company sells products under are 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. Additionally, it provides independent brands with distribution. The US, Turkey, Scotland, France, and the Caribbean Islands all have Remy manufacturing facilities. It has operations in the Americas, the Middle East, Africa, Asia-Pacific, and Europe. Remy's corporate headquarters are in Cognac, France. In November 2022, it was announced that Louis XIII and the Leela Palace Delhi would collaborate for the first time ever on a full dinner cognac pairing.
Alcoholic beverages are produced, sold, and distributed by Tilaknagar Industries Ltd (TI). The company's product line includes whiskey, brandy, rum, vodka, and gin. It sells its products under the names Mansion House Whisky, Senate Royale, Mansion House Brandy, Madiraa, Senate Royale Red, Blue Lagoon, Courrier Napoleon Green, and Courrier Napoleon Red. The company offers its products directly to clients, via distributors, and via businesses. In addition to Europe, the Middle East, Africa, and East and South-East Asia, it also ships items there. The corporation operates manufacturing plants in the Indian states of Telangana, Jammu, Kerala, Karnataka, Andhra Pradesh, Odisha, West Bengal, and Assam. The TI corporate office is in Mumbai, Maharashtra, India. The Mansion House flagship brand's owner, Tilaknagar Industries, announced the launch of their new brandy in September 2022. Mansion House Reserve French Style Brandy's "Ugni Blanc" grapes are hand-picked in India's Sahyadris region.
· Remy Martin
· Hennessy LVMH
· Pernod Ricard
· Radico Khaitan Ltd.
· Naud Spirts & Distillery
· Emperador Distillers Inc
· Suntory
· Meukow Cognac
· Thomas Hine & Co.
· Maison Ferrand
July 2022: The "Malabar brandy" is produced at the Malabar distillery in the Palakkad region and is distributed by BEVCO Outlet, a state-run company in Kerala.
April 2021: Mohan Brothers announced the launch of Burlington's Very Old Pale reserve French grape brandy in the Indian market. The company also released nine additional flavors of brandy in different types.
· Value
· Premium
· High-end Premium
· Super Premium
· On-Trade
· Off-Trade
· 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
|
Report Attribute/Metric |
Details |
|
Market Size 2022 |
USD 12.2 Billion |
|
Market Size 2023 |
USD 12.4 Billion |
|
Market Size 2032 |
USD 19.4 Billion |
|
Compound Annual Growth Rate (CAGR) |
5.30% (2023-2032) |
|
Base Year |
2022 |
|
Market Forecast Period |
2023-2032 |
|
Historical Data |
2018- 2022 |
|
Market Forecast Units |
Value (USD Billion) |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Type, Distribution Channel, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
|
Countries Covered |
The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|
Key Companies Profiled |
Remy Martin, Hennessy LVMH, Pernod Ricard, Radico Khaitan Ltd., Naud Spirts & Distillery, Emperador Distillers Inc, Suntory, Meukow, Cognac, Thomas Hine & Co., and Maison Ferrand |
|
Key Market Opportunities |
Increasing number of food service chains |
|
Key Market Dynamics |
The increasing adoption of cocktail culture in confluence with the rising trend of socializing at restaurants and bars and the rising demand for organic variants, expanding food tourism, and culinary services |
The global Cognac and Brandy Market was valued at USD 12.2 billion in 2022, and it is estimated to reach USD 19.4 billion by 2032.
The global market is projected to grow at a CAGR of 5.30% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are Remy Martin, Hennessy LVMH, Pernod Ricard, Radico Khaitan Ltd., Naud Spirts & Distillery, Emperador Distillers Inc, Suntory, Meukow, Cognac, Thomas Hine & Co., and Maison Ferrand
The Premium Type dominated the market in 2022.
The On-Trade Distribution Channel had the largest share in the global market.
Report Code :
RL65134
Published on :
Sep 2023
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