Cognac and Brandy Market
Report ID: SQMIG30F2061
Report ID: SQMIG30F2061
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Report ID:
SQMIG30F2061 |
Region:
Global |
Published Date: January, 2026
Pages:
182
|Tables:
62
|Figures:
67
Global Cognac and Brandy Market size was valued at USD 23.6 Billion in 2024 and is poised to grow from USD 24.8 Billion in 2025 to USD 36.93 Billion by 2033, growing at a CAGR of 5.1% during the forecast period (2026-2033).
The cognac and brandy market share is a growing sector of the global spirits industry that has both established and evolving characteristics. It is influenced by a variety of factors including consumer preferences for premium products, regional differences between consumers, and shifting methods of distribution.
Increased global demand for both premium and aged products have been the driving force behind the consumer's desire for sophisticated, high-quality products. Growing appeal among younger and female consumers and an increase in luxury gift-giving opportunities. The traditional production regions of France and Spain are the foundation of the market's historical appeal; therefore, the use of unique aging methods, appellation control, and craftsmanship have all contributed to the distinctiveness of brands and consumer loyalty. At the same time, emerging markets (primarily in Asia and Latin America) are becoming increasingly important due to rising disposable income and a growing middle class, along with targeted marketing partnerships that improve product availability and aspirational consumption. In addition, digital engagement and e-commerce channels further develop the consumer base for premium beverages by reaching younger, tech-savvy consumers who are looking for new experiences. However, the market currently faces numerous challenges including geopolitical trade tensions and tariffs which have resulted in reduced exports from countries like China and the United States to rest of the world; therefore, producers will have to create alternative markets and implement strategic alliances to overcome these challenges.
How Is AI Impacting the Cognac and Brandy Market?
An increase in usage of Artificial Intelligence (AI) technologies within the cognac and brandy market has led to improvements in operational efficiencies, quality controls, consumer engagement, and supply chain management throughout the entire spirits industry. By utilizing data analytics and machine learning based on AI-driven analytics, distilling companies and their brands can better understand consumer preferences and develop targeted marketing strategies, in addition to optimizing inventory and demand forecasting processes, allowing these companies to respond quickly to changes in global demand patterns. AI technologies are also being introduced into production as well as quality management systems, to create consistency and assist in profile flavor development, such as using predictive analytics to better refine fermentation and aging parameters to minimize variability and improve sensory characteristics.
Market snapshot - 2026-2033
Global Market Size
USD 13.53 Billion
Largest Segment
Value
Fastest Growth
Premium
Growth Rate
5.7% CAGR
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Global Cognac and Brandy Market is segmented by Cognac Market, Brandy Market, Sales Channel, Age Group, Gender and region. Based on Cognac Market, the market is segmented into Type of Cognac and Cognac Price Segment. Based on Brandy Market, the market is segmented into Type of Brandy and Brandy Price Segment. Based on Sales Channel, the market is segmented into Retail Sales and On-Premise Sales. Based on Age Group, the market is segmented into Millennials and Generation X. Based on Gender, the market is segmented into Male Consumers and Female Consumers. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Why Does the Value Segment Offer Stability but Lower Revenue Generation?
As per the global cognac and brandy market outlook, the value segment dominates the market. Most of the value is consumed by developing countries and price-sensitive consumers. As far as revenue-generating capabilities, the value segment provides a stable baseline of demand but generates significantly lower revenues than those of the higher-end categories. As a result of this, there is a growing perception that brandy and cognac represent social status or luxury, making the appeal of entry-level products less desirable to consumers. However, value products are essential for penetrating the market, developing brand recognition, and providing the first-time buyer with an opportunity to be introduced to premium products.
As per the global cognac and brandy market forecast, the premium segment is the fastest growing in the market. Premium priced, quality products represent a non-price-driven alternative to the high-end and super premium segments of the brandy and cognac markets. Premium products are typically produced in reliable brands, aged moderately, and are also available through a large distribution base, both on-trade and off-trade outlets.
How Do Premium On-Trade Experiences Drive Higher Consumption?
As per the global cognac and brandy market analysis, on-trade segment dominates the market. Exposure to quality service and mixing with ingredients that pair well with high quality/premium/ luxury products will lead to increased consumption of these segments. Signature cocktail offerings at bars and restaurants made with Cognac and Brandy adds aspirational value and increases possibility of future off-trade purchase of products consumed at on-trade outlets. On-trade outlets create brand loyalty, experiential marketing opportunities, and educate consumers on heritage, aging processes, and flavour profiles.
Off trade is rapidly increasing, driven primarily by expansion of modern trade retailers and online sale platforms. Cognac and brandy market growth is being driven largely because of convenience, increased consumption at home, and gifting patterns. From an e-commerce perspective, off-trade sales channels are extremely important to both emerging markets as well as premium/high-end products, because consumers in these markets look for authenticity, convenience of delivery, and curated options. Off-trade retailers are also benefiting from bundles, limited editions, and seasonal promotions, all of which create repeat purchase opportunities and increase penetration into the target market. Additionally, the proliferation of digital tasting events, virtual promotional opportunities, and direct-to-consumer sales continue to increase Cognac and Brandy adoption by broad based consumer demographics.
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What Drives Strong Domestic Consumption Across European Markets?
Europe continues to be the largest overall market in the world for cognac and brandy where heritage, tradition and historical production of cognac and brandy are strict appellation laws governing the amount of cognac or brandy produced. The region has high domestic consumption rates; established export networks; and efficiently built awareness within consumers regarding quality and craftsmanship of these products.
Cognac and Brandy Market in UK
The UK is one of the largest markets for cognac in the world, with sizeable consumption supported by its cocktail culture and gifting occasions for both cognac and brandy. UK consumers' propensity to purchase spirit products online supports the growth of brandy products in the UK. Germany has continued to have a steady demand for both domestic and imported brandy, valuing traditional craftsmanship and aged products, and providing stability to the overall market in Germany.
Cognac and Brandy in Germany
The cognac and brandy market in Germany is the largest market, benefiting from an institutionally strong economy, well-established consumer preference for high-quality premium imported brandy, and trends toward the consumption of high-quality spirits. Germany is one of the largest markets for cognac/brandy within Europe, consistently being above most of the other European countries on metrics including market size and sales of cognac/brandy.
Cognac and Brandy Market in France
France is the dominate market leader in Europe by virtue of its well-established industry that includes historic production locales such as the Cognac and Armagnac regions, historic industry regulations, and a dominant position for premium products. The country hosts a well-developed ecosystem of winegrowers, distillers, and cognac houses, ensuring consistency in craftsmanship and authenticity. While domestic consumption remains steady, the French cognac and brandy industry is highly export-oriented, supported by strong international distribution networks and global brand recognition.
How Are Rising Middle-Class Incomes and Urbanization Driving Demand?
As per cognac and brandy market regional outlook, Asia-Pacific being the fastest-growing region because they are experiencing a large increase in middle-class income; urbanization rates are increasing along with premium gifting culture. Furthermore, there is rapid development of the on-trade and off-trade distribution networks providing greater access to imported products. Additionally, the emergence of cocktail culture and growing consumer awareness of heritage spirits are continuing to drive adoption throughout these countries.
Cognac and Brandy Market in Japan
Japan has a mature cognac and brandy market due to the long-standing culture associated with enjoying quality aged spirits. Therefore, consumers in Japan are very interested in purchasing imported premium cognac and brandy because they appreciate the quality of craftsmanship, heritage and authenticity. Additionally, urbanization, growing disposable incomes and the strength of the hospitality industries (bars, restaurants and luxury hotels) has improved both the availability of products and the availability of instances in which to use these products.
Cognac and Brandy Market in South Korea
South Korea is a rapidly emerging country in Asia-Pacific regarding cognac and brandy sales; the emergence of a growing middle-class income, aspirational consumption pattern and urbanization have all been key factors leading to the current rate of growth. South Korean consumers are also more willing to experiment with imported cognac/brandy as cocktails and as part of other social and dining experiences. The availability of on-premises locations (bars, lounges, fine-dining restaurants), off-premises (retail and electronic) and other channels for consumer access to imported cognac/brandy has continued to increase.
What Is Driving Demand for Premium and Aged Cognac and Brandy in North America?
As per cognac and brandy market regional forecast, in North America, the premium and aged spirit are buoyed by strong consumer demand, particularly in urban areas where a cocktail culture flourishes. The availability of Cognac and Brandy, both imported and domestic, coupled with a high disposable income rate has allowed the U.S. to dominate these markets in the region via extensive channels (On-Traded & Off-Traded) such as bars, restaurants, eCommerce, etc.
Cognac and Brandy Market in U.S.
The U.S. is one of the significant drivers of the cognac and brandy industry within North America, as evidenced by a burgeoning and mature luxury spirit industry based on high consumer expenditure for cognacs and brandies. Premium cognac and brandy include cocktails, as well as culinary uses and gifting occasions. The vast distribution network is made up of supermarkets, liquor stores, and eCommerce platforms which have made access to premium spirits easier than ever; at the same time, the growing appreciation for aged and hand-crafted cognacs and brandies continues to increase the growth rate of the industry.
Cognac and Brandy Market in Canada
Cognac and brandy continue to emerge as a steady demand in Canada, being fuelled by urban consumers' desire for quality, imported spirits. The increasing trend of consumers' preference towards premiumization and "clean" labels has stimulated the experimentation of international and specialty products. Retail and hospitality channels are responsible for a significant number of sales and growth primarily due to the gifting of luxury spirits, festive events, and lifestyle-oriented consumption.
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Cognac and Brandy Market Drivers
Trends of Sophistication and Premiumization in Spirits Purchasing
Growing Cocktail/Mixology Culture
Cognac and Brandy Market Restraints
Obstacles to Exports and Trade Barriers
Escalating Production Costs and Supply Constraints
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The cognac and brandy industry competitiveness is the result of a combination of traditional producers, multi-national beverage conglomerates, and new craft producers who compete in different price ranges and geographic areas. Long-established producers, like Hennessy, Rémy Martin, Martell, and Courvoisier, provide foundational brands in the premium and super-premium categories with strong brand heritage, wide distribution channels, and innovations in product offerings through limited-edition releases and eco-friendly practices.
While legacy producers (the well-established cognac and brandy houses) continue to dominate the cognac and brandy category, a multitude of new, rapidly evolving craft producers and spirits brands have emerged recently; they are willing to test limits at every level of production, marketing, and customer engagement.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, cognac and brandy market revenue is rapidly growing. Increased consumer preferences for premium, aged, and craft spirits, rising disposable income in developing markets, and increased demand for sophisticated beverages purchased in both on-trade and off-trade channels are driving today's market. The premiumization trend is a major driver of the cognac and brandy market, which leads to the overall beverage industry; more consumers pay a higher price for high-quality, authentic products.
Additionally, expansion of digital & e-commerce channels gives businesses an opportunity to reach out to younger, more tech-savvy consumers around the world. The cognac and brandy market is also being negatively affected by geopolitical trade tensions and tariffs, as well as by regulatory complexity that can create barriers to export and disruption to the supply chain for marketers that source raw materials from one country for production in another. Furthermore, high production costs associated with extended aging periods, as well as climate-dependent grape yield, are limiting the use of a variety of grapes in the production of cognac & brandy. Current cognac and brandy market trends include the growth of flavor innovation/new products and limited-edition variants, the adoption of sustainability practices for product and packaging, as well as the use of AI technology and data analytics to drive improvements in quality control, inventory optimization, and consumer engagement.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 23.6 Billion |
| Market size value in 2033 | USD 36.93 Billion |
| Growth Rate | 5.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Cognac and Brandy Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Cognac and Brandy Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Cognac and Brandy Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cognac and Brandy Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Cognac and Brandy Market size was valued at USD 13.53 Billion in 2025 and is poised to grow from USD 14.3 Billion in 2026 to USD 21.08 Billion by 2033, growing at a CAGR of 5.7% during the forecast period (2026-2033).
The cognac and brandy industry competitiveness is the result of a combination of traditional producers, multi-national beverage conglomerates, and new craft producers who compete in different price ranges and geographic areas. Long-established producers, like Hennessy, Rémy Martin, Martell, and Courvoisier, provide foundational brands in the premium and super-premium categories with strong brand heritage, wide distribution channels, and innovations in product offerings through limited-edition releases and eco-friendly practices. 'Hennessy', 'Rémy Martin', 'Martell', 'Courvoisier', 'Camus Cognac', 'Frapin Cognac', 'Delamain Cognac', 'Hine Cognac', 'Louis Royer', 'Baron Otard', 'Meukow Cognac', 'Yerevan Brandy Company'
The ongoing cognac and brandy market trends towards premiumization within the cognac and brandy markets are the primary factor in driving growth. A growing number of consumers are looking for high-quality, aged, authentic, delivered experiences with their spirits. Cognac and brandy are seen as products of craftsmanship, heritage, and luxury; thus, they appeal to affluent customers and collectors alike. Brands are responding to the demand for higher end and super-premium offerings by innovating through exclusive editions, aged expressions, and increasing the overall demand across the cooker and brandy categories.
Innovation in Product Offerings and Consumer Engagement: Companies in the market have started to develop new products based on different types of consumers, such as offering flavour and special editions of cognac and brandy, developing new packaging, and providing a more experiential way to promote products by sharing the story of heritage and craftsmanship associated with making these beverages. Developing products that capture different types of consumers is essential for brands to connect with consumers who enjoy trying new things and different flavours, especially in luxury and gifting.
What Drives Strong Domestic Consumption Across European Markets?
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