Global Cognac Market - 2022-2029

Global Cognac Market - 2022-2029

Market Overview

The global cognac market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Cognac is a brandy made exclusively from white wine in the Cognac area of France, with a 40% alcohol-by-volume (ABV) ratio. Cognac is made from grape varietals, including ugni blanc and colombard, which are distilled twice in copper pot stills and matured in French oak barrels. The moderate use of cognac can help with asthma treatment, stress reduction, diabetes prevention, and cardiovascular and bone health. Cognac's exclusivity has fueled its market and given it an edge over other premium spirit. The increasing popularity of premium and high-end spirits such as cognac and brandy has influenced consumer demand, primarily driving market expansion.

Market Dynamics:

Increasing demand for alcoholic beverages

The global cognac market is primarily driven by significant growth in alcoholic beverage consumption. Furthermore, increased consumer demand for premium and super-premium cognacs, particularly among millennials, is propelling market expansion. Alcohol use has become a social norm at various festivals and occasions worldwide in recent years. Most employees prefer to drink with friends and colleagues after work on Friday evenings. Similarly, the robust drinking culture is being observed among students on campus. The main factor prompting its surging popularity is its taste, flavor, and mouthfeel, differentiating it from other craft and premium spirits. The versatile nature of cognac to blend with other spirits in mixed drinks and cocktails has augmented its growing popularity. Furthermore, bars, luxury hotels, and fine-dining restaurants are also experimenting with a range of alcoholic beverages to provide their consumers with new dining experiences. As a result, cognac companies have created products with flavors that complement cocktails, propelling the market further.

Market Segmentation:

V.S segment accounted for the highest share in global cognac market

In 2021, V.S. was the market leader, with over XX percent of market revenue share. VS Cognac stands for “Very Special” Cognac. A VS Cognac must be aged for a minimum of two years. This is attributed to the constant demand for new products among customers. Courvoisier S.A.S. introduced Avant-Garde Bourbon Cask Edition in February 2020, which is made from Courvoisier VS liquid and aged in Kentucky Bourbon barrels. The drink has a 40% alcohol by volume (A.B.V.) priced at USD 39.99. It has overtones of vanilla, honey, and sweet marmalade.

Liquor dominated the market in 2020, accounting for more than XX percent of worldwide volume. Customers like to buy drinks from various liquor stores since they are less expensive than most other on-trade distribution channels. People that enjoy collecting and tasting different brands also prefer to buy from liquor stores.

Geographical Penetration:

North-America is the dominating region during the forecast period

North America dominated the market, accounting for more than XX% of global sales in 2021. This is due to the various strategies implemented by the industry in the region. For example, in December 2019, due to increased consumption of distilled spirits in nations such as the United States and Canada, North America is experiencing considerable market expansion. According to the Distilled Spirits Council of the United States (DISCUS), distilled spirits sales in the United States increased by 5.3 percent in 2019 to $29 billion. Premium and craft spirits are becoming more popular due to customer demand.

In terms of revenue, Asia Pacific is predicted to grow at the fastest rate of XX percent during the forecast period. Brand owners in the region have discussed whether to abandon the traditional label in favor of age declarations. It is anticipated that the improved label would aid in the knowledge and stability of cognac, resulting in increased sales.

Competitive Landscape:

The market is characterized by the presence of a small and large number of participants. Some of the key players in this market include Courvoisier S.A.S, LVMH, KELT International and Louis Royer S.A.S. among others. Product launches is one of the key strategies used by market players to gain a competitive edge in the market. D'Ussé, a Jay-Z-owned brand, debuted a new cognac bottle, D'Ussé 1969 Anniversaire, in December 2019. The product is bottled from a single barrel that has been matured at the Château de Cognac cellars in France. Furthermore, Altia launched a limited-edition cognac under the Larsen brand in November 2019. The VSOP Double Toasted cognac has been matured in handcrafted barrels that have been twice toasted. The further charring produces a delicious aroma of vanilla, toffee, and other roasted overtones.

COVID-19 Impact:

Positive impact on the global cognac market

During the COVID-19 pandemic, demand for alcoholic beverages has decreased slightly. The global shutdown made it difficult to distribute alcoholic beverages. Bars, restaurants, taverns, and breweries were forced to close due to the lockdown, and client visits were severely limited. On-premise and off-premise closures due to strict lockdown measures resulted in disastrous consequences, with sales decreasing by 20%-30% from March to April 2020 globally. However, Europe's major suppliers created an online platform to streamline the supply chain for alcoholic beverages for fiscal year 2021-2022. This type of effort helped the industry grow by increasing alcoholic beverage sales.

Why Purchase the Report?

Understand the current market scenario and viability of global cognac market over the forecast period.

Visualize the composition of the global cognac market terms of grade, distribution channel and region to identify major players, growth potential, and market strategies.

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period.

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global cognac market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market Share Analysis covering business revenues ($) and revenue share (%) of key market players

The global cognac market report would provide an access to approximately 53 market data tables, 45 figures and 190 pages

Target Audience:

Food & Beverage Companies

Alcoholic Beverages Manufacturers

Import and Export Companies

Industry Investors

Education & Research Institutes

Research Professionals