Brandy Market

Brandy Market Size, Share, Growth (2023-2028)

Brandy Market is expected to reach USD xx million by 2028 and will be valued at USD xx million in 2023.

Brandy Market Overview:

Brandy is a liquor derived from distilling wine and comprises around 35-60% alcohol. Brandy is an alcoholic beverage derived from a fermented fruit mash. Commercial distillation of wine to make brandy has been around since the 16th century and is a prevalent procedure. This beverage can be made from any fermented fruit and is generally named after the fruit fermented to distinguish between different types. Brandy is often put into deep wooden containers lined with paraffin to age them, which turns the white brandy into an amber shade. Occasionally a caramel solution is also added to the beverage for color. This intoxicating beverage is said to have originated in France in 1313 and was initially only used as a medicinal beverage and as an excellent disinfectant. Brandy on its own contains around 50% alcohol content, but when it is added to fortify certain beverages like sherry and Madeira, it contains around 80-90% alcohol. Brandy is said to have been found accidentally when wine was distilled to add water to it later; however, the distilled version gained popularity. Today brandy is a trendy beverage.

Brandy Market Drivers:

The brandy market is expected to grow due to the popularity of alcoholic beverages and the widespread consumption of the same in different forms. For example, the cognac from France is considered the finest of all brandies and is popular though out the world for its rich flavor. Each region is known for its variety of brandy, like how the Greek is known for Metaxa, a more sweetened and caramelized version of brandy, and the american brandy from California is often bland and neutral. Therefore, the various options available for brandy tasting support the market. Brandy is often served after dinners as a refreshing beverage in several restaurants and is also used on some deserts to create a flame on top of some burning deserts for extra flavor and presentation. Therefore, the beverage is often used in high-profile restaurants leading to brandy market growth.

Additionally, the several health benefits of brandy support the market's growth. Brandy is said to help boost immunity and even protect heart health. It is also suitable for reducing cancer risk and soothing coughs and colds. It can also help slow down the aging process. Brandy can help an individual lose weight by reducing the blood's cholesterol levels and having a good night's sleep. The several health benefits of alcoholic beverages support the growth. Brandy is used in several cooking recipes and foods like brandy pear relish, pan steaks, onion soups, etc. It is an essential ingredient of several cocktails like Betsy Ross, side by Sidecar, brandy sangaree, etc., and supports brandy market growth during the forecast period. 

Making brandy is a straightforward process and does not require much effort. Brandies can also be produced at home and stay well indefinitely, even though the quality declines once the bottle is opened. Brandy is also used as a spirit base for producing liqueur and as a disinfectant and medicinal beverage. Brandy has excellent anti-inflammatory properties and can help relieve coughs and loosen mucus. Brandy, whose alcohol content is not more than 60%, is a highly effective disinfectant and can help keep the surroundings clean. Therefore, the multiple applications of the beverage support the market's growth. The growing number of alcoholic drinks enthusiasts worldwide and the rising culture of pubs and parties worldwide supports the market's rise. 

Brandy Market Restraints:

However, it is a fact that too much alcohol can be highly injuries to health, and the same goes for brandy. Overconsumption of brandy can lead to inflammation of the blood vessels, increased cholesterol levels, ill effects on cardiovascular systems, risk of heart attack, stroke, and even liver damage. In addition, long-term brandy consumption can lead to memory loss, a weakened immune system, and even brain damage. Therefore, the high chance of addiction to alcohol and ill health effects are significant drawbacks to the market. The growing trend for low-alcohol beverages also supports the growth of the market. Additionally, the high brandy costs can make it challenging to purchase for several economic classes leading to the market's growth. 

Impact of covid-19 on the global brandy market:

The pandemic left a significant economic impact on several industries worldwide. Many industries faced severe losses due to the sudden closure of production and supply chains, leading to a product shortage and raising prices for available products. The brandy market faced a negative impact from the pandemic due to the ill effects of alcohol on health. The WHO busted several myths about alcohol helping people defend against covid and stated that alcohol is injuries no matter what quantity it is taken in and that it has no positive effects against covid. Therefore, the market faced losses as people became more health-conscious and avoided drinking brandy. The distillation centers also faced a severe need for more human resources leading to a reduction in the brandy-making business. 

Key Developments:

• April 6, 2023, The Mansion House brandy from Tilaknagar Limited company is again on track after its CEO faced a lawsuit with allied blenders and distillers aiming to acquire the company ultimately. The company chairman, Amit Dahanukar, has denied all the company's rights, fought over ownership with the primary industries, and now put the brandy company back into the market for business.

• April 3, 2023, Stella Rose is a #1 imported wine brand that produces Stella Rose Premium imported brandy, a top-selling product. The company plans to expand the market for this premium brandy to the US in states like Arizona, Indiana, Kentucky, Washington, Hawaii, Nevada, etc. After introducing the product in these areas, the company sold over 50,000 cases nationwide, and the project was considered a success. 

• March 28, 2023, Courier Napoleon Brandy from the Tilaknagar Limited enterprise has hit its second 1 million cases. As a result, the brand has incurred high growth in 2023 and has recorded a growth rate of 40% and 88% in Kerala and Puducherry, India. 

• On March 30, 2023, a new brandy distillery from burnt faith opened in northeast London. This is the first-ever distillery for burnt faith on the British Isles, and the company aims to expand businesses through this location.

Brandy market segmentation:

By Type:

• Cognac

• Armagnac

• Grape Brandy

• Fruit Brandy 

• Others

The Cognac brandy is the most popular type of beverage and is expected to dominate the market during the forecast period. Cognac is famous because of its rich flavor and the fact that it can be consumed as is and even in multiple cocktails. Cognac has been aged for a long time, and the drink variety has been around for quite some time, making it common among consumers and supporting market growth. The presence of a variety of cognac brandy also leads to market growth. 

The Armagnac variety is also expected to incur revenue due to its rich heritage and history from France and its underrated production. 

By Price:

• Super Premium

• High-End Premium

• Value

• Premium

Premium and high-end premium brandy are expected to dominate the market during the forecast period as well-aged brandy is the most in-demand, and the average consumer for alcoholic beverages falls above the average economic category leading to segment growth.

The value type is also expected to grow due to its popularity as the most worth-for-money variety. The highest-priced brandy in 2023 costs around 2 million dollars and falls under the super-premium category. This category is rarely purchased and therefore has high but slow revenue in the market. 

By Distribution Channel:

• Exclusive Stores

• Supermarkets and Hypermarkets

• On-Trade

• Others

The Exclusive store segment is expected to dominate the market because the population trusts genuine brandy sources and alcoholic stores instead of any other markets for purchasing and consuming brandy. 

By Region:

• North America

• Europe

• Asia-Pacific

• Latin America

• MEA

The North American region is expected to dominate the market during the forecast period due to the high preference for alcohol consumption in the region and the growing populations with a drinking lifestyle in the US and Canada. Additionally, as the US is the largest importer of brandy in the world, it provides significant revenue to the industry. Furthermore, as the northern regions can get extremely cold and people need warm drinks to keep their body temperature high, there is a tradition for brandy consumption. The high number of wine distilleries in the region also supports the growth of the brandy market. 

The market in Asia-Pacific is also growing due to rising club culture among teenagers and disposable incomes among the population. Additionally, countries like China and India are significant producers and exporters of various brandy, and there is a presence of key players in the region driving the market revenue. Furthermore, the rising demand for locally produced brandy in the region also drives the growth.

The European region is also expected to grow due to the countries like Italy, which is a significant brandy producer. Additionally, the growing efforts from the European tour to spread information about their natural spirits around the world and the populations looking for alternatives t unhealthy alcohols and something more fruit-based support the market's growth.

The Latin American market is also expected to grow due to the market presence in countries like Spain and Mexico, along with the MEA due to the presence of South Africa. 

Key market players:

• Courvoisier Cognac (Beam Suntory Inc.)

• Diageo Plc

• E. & J. Gallo Winery

• Emperador (Alliance Global Group, Inc.)

• F. Korbel & Bros.

• Martell

• Speciality Brands Ltd.

• Rémy Cointreau

• Thomas HINE & Co.(EDV SAS),

• Yantai Changyu Pioneer Wine Company Limited.