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2025-2034 Cognac And Brandy Market Outlook: Key Drivers, Emerging Challenges, and Strategic Insights
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Will the Cognac And Brandy Industry Market Size Be by 2025?
Recent years have seen significant growth in the size of the cognac and brandy market. The projection is that it will expand from $14.97 billion in 2024 to $15.79 billion in 2025, with a compound annual growth rate (CAGR) of 5.5%. The strong growth experienced in the past can be credited to factors such as tradition and heritage, the globalization of consumer tastes, luxury and status symbol appeal, cultural and social importance, and the growing popularity of mixology.
What's the Long-Term Growth Forecast for the Cognac And Brandy Market Size Through 2029?
Anticipated robust expansion is on the cards for the cognac and brandy industry in the coming years, with the market predicted to scale up to a value of $19.79 billion by 2029, following a compounded annual growth rate (CAGR) of 5.8%. The upsurge in the forecasted timeframe is principally due to the emergence of premium trends, growth in developing markets, the rise of e-commerce and digital retail, the surge in craft and artisanal manufacturing, and cultural impact on flavor blends. The forecast period will see significant trends including advancements in packaging, experimentation and infusion of flavors, interactive brand experiences, and partnerships with mixologists and chefs.
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What Are the Key Growth Drivers Fueling the Cognac And Brandy Market Expansion?
The growth in the cognac and brandy market is being fueled by a surging demand for craft beverages. These refer to small-scale, tradition-based, independently brewed drinks, often containing cognac and brandy. There are numerous health benefits linked to these beverages, such as delaying aging signs, managing weight, and treating respiratory issues. Brandy, when consumed in judicious amounts, can enhance sleep quality and regularity, and is also beneficial for heart health. As cited by the Brewers Association, an American not-for-profit professional body, the number of active craft breweries hit an all-time high of 9,761 in April 2024. This total includes 2,092 microbreweries, 3,502 brewpubs, 3,910 taproom breweries, and 257 regional craft breweries. The overall number of operating breweries across the U.S. increased to 9,906, a rise from 9,824 in 2022. As such, the surge in craft beverages is significantly propelling the cognac and brandy market expansion.
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What Are the Key Trends Driving Cognac And Brandy Market Growth?
The current trend gaining traction in the cognac and brandy market is product innovation. Corporations participating in this market are embracing novel technologies to maintain their competitiveness. Tamworth Distilling, a distillery based in New England, for example, debuted a distinctive trout-flavored brandy named House of Tamworth Saison De Frai in November 2023. This brandy incorporates elements of its environment-it's inspired by the Swift River that runs past the distillery and crafted by using smoked trout, maple syrup, and apple brandy. The trout-flavored brandy from Tamworth Distilling is an extension of their ongoing experimental spirit line that includes unique products like roast-turkey-flavored whiskey. House of Tamworth Saison De Frai represents a unique innovation, introducing unexpected flavors that demonstrate the distillery's commitment to creativity and innovation.
How Is the Cognac And Brandy Market Segmented?
The cognac and brandy market covered in this report is segmented -
1) By Product: Cognac, Armagnac, Spanish Brandy, Pisco
2) By Price: Value, Premium, High-End Premium, Super Premium
3) By Application: Household, Commercial
4) By Distribution Channel: On Trade, Off Trade
Subsegments:
1) By Cognac: VS (Very Special), VSOP (Very Superior Old Pale), XO (Extra Old), Other Age Classifications
2) By Armagnac: VS (Very Special), VSOP (Very Superior Old Pale), XO (Extra Old), Vintage Armagnac
3) By Spanish Brandy: Brandy de Jerez, Other Regional Varieties
4) By Pisco: Pisco Sour, Acholado, Mosto Verde
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Which Companies Are Leading the Charge in Cognac And Brandy Market Innovation?
Major companies operating in the cognac and brandy market include Hennessy LVMH, Diageo Plc., Suntory Holdings Limited, Pernod Ricard SA, E & J Gallo Winery, Beam Suntory Inc., Campari Group, Remy Martin XO, United Spirits Limited, Emperador Distillers Inc., Martell and Company SA, Radico Khaitan Limited, Tilaknagar Industries Ltd., Miguel Torres SA, Korbel Winery, Copper and Kings, Courvoisier SAS, Louis Royer SAS, Asbach GmbH, Global Spirits, Camus Cognac, Naud Spirits & Distillery, Meukow Cognac, Thomas Hine & Co, Paul Masson, Christian Brothers, Branded Spirits Limited, Delamain Cognac, A. de Fussigny, J.P. Chenet
Which Regions Are Leading the Global Cognac And Brandy Market in Revenue?
North America was the largest region in the cognac and brandy market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cognac and brandy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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