USD 4.45 Billion
Report ID:
SQMIG30E2047 |
Region:
Global |
Published Date: January, 2025
Pages:
184
|Tables:
88
|Figures:
71
Global Cognac Market size was valued at USD 4.45 Billion in 2023 and is poised to grow from USD 4.61 Billion in 2024 to USD 6.07 Billion by 2032, growing at a CAGR of 3.5% in the forecast period (2025-2032).
The rise is, however, attributed to growing disposable incomes in emerging nations since it increases the customers' spending abilities on high-end alcoholic beverages. The phenomenon of "experiential drinking" and rising popularity of artisan goods amongst millennials is also supportive to the global cognac market growth. Furthermore, innovative marketing strategies and wide varieties of products by known firms strongly attract new customers and that is pushing the expansion of this market. Furthermore, exceptional quality of cognac plays a significant role in the growing demand for cognac. The exact distillation procedure, strict laws, and skill of master blenders makes cognac a premium option for connoisseurs. It is thus positioned as a premium product by these attributes and its exclusivity and legacy, fueling demand in both existing and new countries. Moreover, the market is expanding due to the increasing income levels of the general population and raising demand for luxury spirits across the globe. Furthermore, the increasing demand for cognac as a collectible makes it more attractive to buyers who value rarity and uniqueness, which further pushes the market growth. As manufacturers experiment with novel aging techniques, blends, and tastes to appeal to a broader spectrum of customers, product creation is becoming more inventive, which propels market expansion.
Market snapshot - (2025-2032)
Global Market Size
USD 4.45 Billion
Largest Segment
Off-Trade
Fastest Growth
On-Trade
Growth Rate
3.5% CAGR
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The global cognac market is segmented into grade, distribution channel, price range, and others. By grade, the market is classified into V.S, V.S.O.P., and others. Depending on distribution channel, it is bifurcated into on-trade and off-trade. According to price range, the market is divided into premium cognac, super-premium cognac, and value cognac. Regionally, the market is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Based on the 2024 global cognac market analysis, the V.S.O.P. (Very Superior Old Pale) grade accounted for the maximum revenue share of 43.7%, thus leading in cognac sales. Compared with the younger V.S. (Very Special) level, the V.S.O.P. level cognacs spend at least four years inside the oak barrels, that is, longer than enough to make them richer and richer to develop. This aging process allows the existence of further complexity, which makes this very convenient both for casual and connoisseur buyers. The more their customers know about the ageing processes and specific taste profiles used, the greater their respect for premium cognac. So, the demand for this market sector, the V.S.O.P. sector, increases with growing demands and awareness about premium products.
However, the simplicity and versatility of the product make the V.S. (Very Special) category is expected to grow at a compound annual growth rate (CAGR) of 2.2% during the projection period. They have been in business for at least two years and attract a wide variety of customers, from first-time buyers to loyal consumers. Furthermore, the V.S. Grade is highly appreciated in mixology for the cocktail because its taste profile really fits for combining with other ingredients and supporting market growth. In addition, the growing premiumization in the spirits business that is on the spur of consumers, who demand premium commodities at affordable costs, pushes market growth.
As per the 2024 global cognac market forecast, the off-trade category led the market position with the highest revenue share of 50.1%, owing to its high availability and capacity to offer a variety of products. Convenience, affordable prices, and the possibility for customers to assess several brands and types of cognac at the same location are the key reasons why this segment is highly appealing. Off-trade businesses, such as supermarkets and liquor stores, benefit from having much shelf space since this affords them more options. Regulated consumer traffic to these places is an excellent means of presenting new brands and products to a broad base of consumers. As such, the off-trade sector remains the leader in the market.
Over the forecast period, the on-trade category is expected to lead at the fastest CAGR. The expansion is thus attributed to the rising appeal of online shopping among tech enthusiasts who love shopping from home. It offers wide varieties of cognac including rare and special brands that at times are inaccessible in local stores on on-trade platforms. In addition, it serves as a key direct-to-consumer DTC sales channel for the brands of cognac enabling producers to speak directly to their consumers. These platforms enhance the customer experience by offering comprehensive product data, reviews, and virtual sampling sessions, thereby increasing demand and market growth.
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North America accounted for the highest market revenue share with more than 38.8% of the revenue in the year 2024. It endorses a high-consumption culture and makes fine alcoholic beverages a must-have for purchase by consumers. It is mainly popular in the entertainment industry. These luxury and premium spirits have shown strong potential for traction in other market segments. There is also a large distribution network throughout the continent, including liquor stores, supermarkets, and e-commerce sites, through which cognac reaches its market. Robust infrastructure and cultural preferences for quality beverages drive the growth of the market in North America.
Whereas the Asia-Pacific cognac market will grow at a compound annual growth rate (CAGR) of 3.6% during the forecast period. The growth is supported by the area's rising middle class with their rising disposable incomes. Among them, there is clearly witnessed an upward trend in premium and luxury spirits, especially cognac. Along with this is also growing demand for premium segments, specifically XO (Extra Old), of cognac due to their increasing popularity. What is more, cognac continues gaining status as a prestigious commodity both in social and professional life. This trend has resulted in an increase in market share for the region and also the demand for high-end products.
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Growing Interest in High-End Spirits
Cultural Impact and Entertainment Popularity
Strong Competition from Other Spirits
Economic Instability
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Some of the companies that lead in the global competitive cognac industry are Hennessy, Rémy Martin, Courvoisier, and Martell. The brands, massive distribution networks, and interest in luxury products give them a considerable market share. Competition can also be attributed to demand for premium and limited editions, where emerging companies try to gain a market share in the industry. Innovation about taste characteristics, packaging, and marketing adds to the forces of competition in the global cognac market.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, rising demand for high-end and luxury spirits, particularly in developed countries such as North America and developing regions such as Asia Pacific, is fueling the growth of the global cognac market. A surging appreciation for quality and workmanship is pushing consumers towards mature types such as VSOP and XO. A strong competitive landscape benefits large corporations such as Hennessy and Rémy Martin, leading the market. Growth may be limited, however, by factors such as high production costs, intense competition from other spirits, and legal constraints. Emerging growth opportunities arise from the e-commerce and sustainability trends. After all considerations, the cognac industry is on the trajectory for long-term growth by both shifting consumer preferences and the emergence of new products.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 4.45 Billion |
Market size value in 2032 | USD 6.07 Billion |
Growth Rate | 3.5% |
Base year | 2024 |
Forecast period | (2025-2032) |
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 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 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Cognac Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cognac 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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