NEW YORK, July 18, 2024 /PRNewswire/ — The global cognac market size is estimated to grow by USD 897.31 million from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of about 3.64% during the forecast period. Rising awareness of health benefits of cognac is driving market growth, with a trend towards consumption of cognac with food or as cocktail mix. However, growing competition from other alcoholic beverages poses a challenge. Key market players include Bacardi Ltd., Branded Spirits Ltd., CAMUS LA GRANDE MARQUE SAS, Cognac Meukow, Delord Freres SA, KELT International SARL, Louis Royer SA, LVMH Moet Hennessy Louis Vuitton SE, Maison Delamain, MAISON FERRAND, Pernod Ricard SA, Remy Cointreau SA, Suntory Holdings Ltd., Thomas HINE and Co., and Zino Davidoff SA.
Technavio has announced its latest market research report titled Global Cognac Market 2023-2027
Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report
|
Cognac Market Scope |
|
|
Report Coverage |
Details |
|
Base year |
2022 |
|
Historic period |
2017 – 2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 3.64% |
|
Market growth 2023-2027 |
USD 897.31 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023 (%) |
2.78 |
|
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
|
Performing market contribution |
North America at 33% |
|
Key countries |
US, China, Singapore, UK, and Germany |
|
Key companies profiled |
Bacardi Ltd., Branded Spirits Ltd., CAMUS LA GRANDE MARQUE SAS, Cognac Meukow, Delord Freres SA, KELT International SARL, Louis Royer SA, LVMH Moet Hennessy Louis Vuitton SE, Maison Delamain, MAISON FERRAND, Pernod Ricard SA, Remy Cointreau SA, Suntory Holdings Ltd., Thomas HINE and Co., and Zino Davidoff SA |
Market Driver
Cognac is a versatile drink with a wide range of applications. It can be enjoyed neat, on the rocks, or diluted with water. Additionally, it is commonly used as a mixer in various cocktails such as Sidecar, B and B, Horses Neck, and Brandy Alexander. Brands like Hennessy and Meukow are popular choices due to their quality and versatility. Hennessy Black, in particular, is marketed as a mixable brandy with a delicate taste and high alcohol content, making it ideal for cocktails. Consumers seek unique experiences and are moving away from traditional beverages like beer towards cocktails. This trend is driving the growth of the global cognac market, particularly in countries like the US where cognac is perceived as a status symbol. The increasing popularity of cognac-based cocktails in restaurants and bars is expected to continue, contributing to the market’s growth during the forecast period.
The alcohol market, including cognac and other alcoholic brands, continues to trend with consumers seeking premium experiences. Brands like Hennessy and Torres lead the way, while online websites and restaurants cater to alcohol-oriented communities. Health-conscious consumers are also exploring non-alcoholic beverages and RTD cocktail mixers. The Future Drinks Expo showcases innovative products like the Distell brand’s non-alcoholic spirits. Renewable energy sources, such as wind farms from Dulacca, Karara, Flender, Moventas, Wind Prime, Dobele Wind Farm, Innergex Renewable Energy, Boswel Spring Wind, and Planetary gearboxes from Dana Motion Systems and Stork Gears, are powering the production of alcoholic beverages. Millennials prefer higher alcohol by volume (ABV) in their very special Under Larsen brand cognac, distilled in copper pot stills. Craft beverages, including premium alcoholic liquors and fruit juice base spirits, fuel cocktail culture for socialization in restaurants and bars.
Discover 360° analysis of this market. For complete information, schedule your consultation – Book Here!
Market Challenges
The cognac market faces challenges from increasing competition with other alcoholic beverages such as vodka, rum, and whiskey. This competition is particularly significant in certain regions like Germany, France, Italy, Russia, Belgium, and Sweden, where the demand for these alternative beverages is rising, negatively impacting cognac sales. In Asia Pacific, China is a significant market for alcoholic beverages, but the popularity of Baijiu and consumer preference for beer over spirits pose challenges for cognac growth. To sustain and expand in this competitive market, cognac manufacturers must focus on innovative marketing strategies and product development.
The cognac market faces unique challenges in the current business landscape. Millennials prefer lower alcohol by volume (ABV) options and seek authentic experiences, favoring craft beverages over mass-produced spirits. Copper pot stills are used to distill very special distilled spirits like cognac under the Larsen brand. Double Toasted cognac, made from white grapes, is a premium alcoholic liquor gaining popularity. Pandemic phase has led to a shift in sales of liquor from restaurants and bars to retail sectors and online shopping platforms. Bacardi India and other brewing industries capitalize on the drinking culture, with a focus on health-imparting properties of premium spirits. Super-premium spirits like Bardinet, Barista cocktails, Quintessence, Revelation, and Grand Marnier brand are in high demand. The spirits industry grapples with the changing consumer preferences and production challenges. Premiumization, cocktail culture, and socialization continue to drive sales. The ProWine trade fair showcases the latest trends and profit outcomes for premium spirits. Gen Z and young adolescents are exploring new flavors, with fruit juice bases gaining traction. The spirits industry remains resilient, adapting to market shifts and consumer demands.
For more insights on driver and challenges – Request a sample report!
Segment Overview
This cognac market report extensively covers market segmentation by
Distribution Channel
1.1 Off trade
1.2 On trade
Product
2.1 VS
2.2 VSOP
2.3 XO
Geography
3.1 North America
3.2 APAC
3.3 Europe
3.4 South America
3.5 Middle East and Africa
1.1 Off trade- The Cognac market is a significant sector in the global spirits industry. Producers in the Cognac region of France create this distinctive brandy using specific grape varieties and distillation techniques. Export is a key driver for the market’s growth, with major markets including the US, China, and the UK. Brands like Hennessy, Martell, and Remy Martin dominate the market due to their long-standing reputation and high-quality offerings. Producers focus on innovation, such as limited editions and collaborations, to attract consumers and maintain market share.
For more information on market segmentation with geographical analysis including forecast (2023-2027) and historic data (2017-2021) – Download a Sample Report
Learn and explore more about Technavio’s in-depth research reports
The global beer market is experiencing steady growth, driven by increasing consumer demand for craft and premium beers. Key players such as Anheuser-Busch InBev, Heineken, and Carlsberg dominate the market, leveraging innovative flavors and marketing strategies. The rise in disposable income and changing lifestyle patterns are fueling market expansion. Additionally, the growing trend of health-conscious drinking is leading to the development of low-alcohol and non-alcoholic beers. Asia-Pacific and North America are significant regions contributing to the market’s growth, with emerging markets providing new opportunities for expansion.
Research Analysis
The Cognac market is experiencing a resurgence, particularly among Millennials who are rediscovering this very special distilled spirit. With an alcohol by volume range of 40-60%, Cognac is a premium alcoholic liquor produced exclusively in the Cognac region of France. The traditional production process involves distilling white grape wine in Copper pot stills and aging in oak barrels. New trends in the market include Double Toasted cognac, which undergoes an additional toasting process for a richer flavor. The craft beverage industry is also influencing the Cognac market with innovative offerings. The spirits volume consumption is on the rise, driven by cocktail culture and socialization in restaurants and bars. Premiumization is another key trend, with consumers willing to pay a premium for high-quality Cognac. Meanwhile, the renewable energy sector is making strides in the production of Cognac. Companies like Flender, Moventas, Wind Prime, Innergex Renewable Energy, Boswel Spring Wind, and others are investing in wind farms, such as Dobele Wind Farm, Karara Wind Farm, and Dulacca Wind Farm, to power their distilleries and reduce their carbon footprint. Cognac remains a symbol of luxury and sophistication, appealing to those seeking a unique and memorable drinking experience.
Market Research Overview
The Cognac market is experiencing a resurgence, driven by the millennial demographic and the growing trend towards craft beverages and premium alcoholic liquors. With an alcohol by volume range of 40-60%, cognac is a distilled spirit made primarily from white grapes. The production process involves fermenting the grape juice and then distilling it in copper pot stills. The market for very special cognacs, such as Double Toasted and those under the Under Larsen brand, is seeing significant growth. The spirits volume consumption is on the rise, fueled by cocktail culture and socialization in restaurants and bars. Premiumization is a key trend, with sales of liquor in the super-premium spirits category driving profit outcomes. The brewing industries and retail sectors are also embracing cognac, with online shopping platforms and alcohol-oriented communities playing a growing role in the market. The pandemic phase has accelerated this trend, with more people drinking at home and exploring new alcoholic brands like Bardinet, Barista cocktails, Quintessence, Revelation, and Grand Marnier. Gen Z and young adolescents are also entering the market, with a growing interest in alcohol-related content and health-imparting properties of cognac, such as its anti-inflammatory, antidepressant, and anti-aging potential. The spirits industry is responding with new product offerings, such as non-alcoholic beverages and RTD cocktail mixers, and the ProWine trade fair is a key platform for showcasing these innovations. Meanwhile, the wind energy sector is also making headlines, with companies like Bacardi India, Dana Motion Systems, Moventas, Wind Prime, Innergex Renewable Energy, Boswel Spring Wind, and Planetary gearboxes investing in renewable energy to reduce their carbon footprint and meet growing demand for sustainable production methods.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Distribution Channel
Off Trade
On Trade
Product
VS
VSOP
XO
Geography
North America
APAC
Europe
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio