Cognac Market

Global Cognac Market Size (2024 to 2029)

The Cognac Market is expected to have USD 4.2 billion at a CAGR of 3.5 % during the forecast period.

Cognac is a premium alcoholic beverage. It is a type of grape brandy made by the double distillation process. It is produced using Trebbiano, folle blanche, and colombard grapes that give a delicate, acidic, and fruity flavor to the beverage. It is specially made from the white wine from the department of the Charente-Maritime in the Cognac district of Western France. It follows the aging procedure. It is specifically made in the Cognac region of France and its specific process of manufacturing is the growth driving factor for the market. It would be a perfect combination with the different spirits, cocktails or blends is the market development attribute. It has certain health benefits like moderate consumption can aid in asthma management due to being rich in antioxidants. It can prevent diabetes, improve bone health, and reduces stress.

The apple, honey, oakwood, sandalwood, cinnamon, and caramel such innovative flavors in the market are the opportunity for the Cognac market to reach diverse consumer preferences. Increasing consumer preference for consuming premium alcoholic beverages is rising in developing countries would be an opportunity for market growth. Present online retail channels expanding the user’s number would also be an opportunity for product reach to all consumers. The inclination of the consumers to try distinct flavors will also be an opportunity. The wide options for the product would make the Cognac Market reach diverse consumer requirements. Moreover, concentration on the research and development activities along with increasing modernization will be further new opportunities for the Cognac market to enter into segments.

Global Cognac Market Drivers:

The number of Cognac-producing companies has increased causing the increased supply. The consumption by students and working-class people of premium alcoholic beverages is seeing significant growth in the Cognac Market. The increased personal disposable income by the people and preference towards a better standard of living in developing countries is a driving factor. Its superior quality and its premium-making procedure drive the end-user to Cognac consumption. Many food service providers are promoting Cognac through the addition of new cocktail products made from this premium alcoholic beverage are added to their menu. These would act as a vital driving factor for the market development.

Global Cognac Market Restraints:

Cognac is made from a special process that is costly and the final product is affordable to high-end consumers only. It requires a lot of research and development activities to sustain in the market. The production is specific in the particular region is causing the decline in meeting demand needs and the strict regulations in the production in that specific area are acting as a restraint in meeting the demand and supply requirements. Competition in the market is always a constant restraint. The continuous need for the introduction of new variants to meet the changing taste and preferences of consumers require constant research and development activities which involves huge investment and can be a restraint to market development and can limit growth.

The apple, honey, oakwood, sandalwood, cinnamon, and caramel such innovative flavors in the market are the opportunity for the Cognac market to reach diverse consumer preferences. Increasing consumer preference for consuming premium alcoholic beverages is rising in developing countries would be an opportunity for market growth. Present online retail channels expanding the user’s number would also be an opportunity for product reach to all consumers. The inclination of the consumers to try distinct flavors will also be an opportunity. The wide options for the product would make the Cognac Market reach diverse consumer requirements. Moreover, concentration on the research and development activities along with increasing modernization will be further new opportunities for the Cognac market to enter into segments.

Impact of COVID-19 on the Cognac Market:

The production and sale of Cognac had been severely affected by the COVID-19 pandemic. COVID had caused several disruptions in the supply and demand of the product caused due to impose of travel restrictions and economic uncertainty at both the regional and individual levels. The temporary shutdown of the operations in the industry and restricted employee work due to safety issues caused decreased production. The pandemic caused the closure of all restaurants and bars led to decreased sales of Cognac. Online sales have seen growth in the market. The post-pandemic caused increased sales in the online channel and service providers are more concentrated on developing the online trade to make the consumers buying procedure convenient.

REPORT COVERAGE: 

This research report on the global Cognac Market has been segmented and sub-segmented based on Grade, Distribution Channel, and region. 

Global Cognac Market - By Grade:

• Very Special
• Very Special Old Pale
• Extra Old
• Others

The very special and very special old pale segment is expected to have a high market share in the Cognac market. Very special will at least allowed to store for two years. The persistent demand for the novel very special Cognac by the ned-users in the market is a dominant factor for the segment growth in the market across the globe. The very special old pale type has to be stored for at least four years to obtain its specific taste. The numerous launches of products in the Cognac Market in this segment is a market development attribute.

Global Cognac Market - By Distribution Channel:

• On-trade
• Off-trade

The physical presence of numerous liquor shops will be a driving factor for the off-trade segment to high Cognac market share. The cost is also less compared to the on-trade distribution channel which makes people prefer off-trade purchases there leading to increased sales in this segment. Consumers generally prefer to have a tasting and collect diverse brands which is possible in off-trade channels. In the near future, on-trade will also have a significant contribution to the market. Consumption of Cognac with certain dishes is growing the demand for the on-trade as sales in the food service providers for Cognac have been increasing. That can lead to a demand rise for the market.

Global Cognac Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America is expected to lead in the Cognac market among other regions due to its high revenue generation. This region has a huge demand for alcoholic beverages from students and working-class groups in the countries like U.S. and Canada. Many strategic policies implemented by the existing players will also act as a growth factor. The increasing population is an additional factor contributing to the market. The Asia-Pacific region has people with high disposable income and it is predicted that by the end of 2030, 55% of the increased global increment is from the increased disposable income. This would rise the consumer number in these regions. The growing population in India and China will increase Cognac market sales.

KEY MARKET PLAYERS:

Key market players of global Cognac Market are Bacardi, Beam Suntory, Branded Spirits, Courvoisier S.A.S, Davidoff of Geneva USA Online, Inc, E. Remy Martin & Co, Kelt International, Maison Ferrand, Mewkow, Thomas Hine & Co.

RECENT HAPPENINGS IN THE MARKET.

In 2020, Seignette VS cognac is the new product launched by the Sazerac Company Inc under the brand name Hi-Spirits to attract the new generation consumers of Cognac in the UK. It provides a fresh flavor and aesthetic appeal to the users.