cognac market

Cognac Market Share, Size, Trends, Industry Analysis Report, By Grade (Very Special, Very Special and Old Pale, Extra Old, Others); By Distribution Channel (On-Trade, Off-Trade); By Region; Segment Forecast, 2021 - 2028

  • Published Date: Oct 2021
  • Pages: 111
  • Format: PDF
  • Report ID: PM2122
  • Base Year: 2020
  • Historical Data: 2016 - 2019

Report Summary

The global cognac market was valued at USD 3.81 billion in 2020 and is expected grow at a CAGR of 3.9% during forecast period. The growing millennials population all around the globe is a leading factor for the growth of the market. Moreover, From the past few decades, the consumption of cocktails or alcoholic spirits on special occasions or specific events has become a social norm, mainly in Europe and North America. Along with the key players in the cognac, the market is developing new products for satisfying the ever-growing market demand of the cognac in the upcoming scenario and providing a new outlook for the acceleration of the market all over the world.

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Cognac is the term generally used for the specific type of brandy, which is formed after the twice distillation and through the procedure of aging. This brandy was only generated in the Cognac region present in France. The usage of white wine produces cognac along with comprises the ratio of forty-percent ABV (alcohol-by-volume). The brandy is refined in copper pot stills twice and aged minimum in the French oak barrels. This superiority of the cognac is eventually paving the way for the growth of the market in the upcoming years.

The development of this market is driven due to the adaptable nature of the cognac combination with the different premium spirits varied cocktails or blends such as lemonade and sodas. As peoples tend to taste distinct flavors and mouthfeels, the exclusiveness of the cognac fascinates a large number of end-users, which, in turn, attributes to the progression of the market globally.

Industry Dynamics

Growth Drivers
The increasing disposable income coupled with the enhancing standard of living in the developing economies may further contribute to market growth. A rise in income attributes to going preference for cognac among the end-users. As cognac is produced by the grapes and other resources, which made it slightly expensive than other spirits but the superiority of this gain large popularity, which, in turn, leads the higher market demand of the cognac.

For instance, most of the world’s disposable income arises from Asia Pacific, primarily due to continuously evolving middle-class people. It is projected that around 55% of the global increment addition in USD trillion in terms of disposable income by 2030. India and China are some of the major contributors to the APAC region due to the strong growth of the economy, absolute income growth, and rising population.

Report Segmentation

The market is primarily segmented on the basis of grade, distribution channel, and region.

By Grade

By Distribution Channel

By Region

  • Very Special
  • Very Special and Old Pale
  • Extra Old
  • Others
  • On-Trade
  • Off-Trade
  • North America (U.S., Canada)
  • Europe (Germany, UK, France, Italy, Spain, Netherlands, Austria)
  • Asia Pacific (China, India, Japan, South Korea, Indonesia, Malaysia)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, South Africa, Israel, UAE)

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Insight by Grade

Among the grade segment of cognac, the very special segment held the ruling position in the global market. The V.S. refers to a very special blend, which is stored for at least two years. The constant demand for the novel V.S. products among the end-users or food chains leads to the dominance of the segment all over the world. For instance, Avant-Garde Bourbon Cask Edition was launched by the Courvoisier S.A.S., in February 2020. This edition is based at forty percent ABV and is manufactured with the help of Courvoisier V.S. liquid, and additional work is completed in Kentucky Bourbon casks.

The special and old pale segment is anticipated to grow at the highest CAGR in the forthcoming years. V.S.O.P. is also known as a very superior old pale and is a type of cognac blend that has been stored at least for four years. It comprises the title such as “reserve” or “old”. Factors such as numerous launches of products in the market attribute to the segment growth globally. For example, the Under Larsen brand, Altia introduced its limited-edition cognac in November 2019. The V.S.O.P. Double Toasted cognac is stored in double toasted handmade barrels. This comprises 40 percent ABV and it is accessible in Norway and Finland.

Insight by Distribution Channel

The off-trade segment is anticipated to show a huge revenue in the global market because of the presence of numerous liquor shops as they sell it at cheaper prices than various further on-trade distribution. Thus, this factor attributed to appeals the large group of consumers towards the off-trade segment, thereby leading to the growth of the segment. In addition, a lot of individuals tend to prefer tasting and gathering diverse varieties of brands thus leads to picking more off-trade channels.

Whereas the on-trade segment is likely to pave the highest CAGR in the near future. The demand for the cognac is increasing among several eateries such as bars and restaurants, which may boost sales from other on-trade channels. Moreover, cognac goes well satisfactory with certain dishes in restaurants coupled with the growing demand for cocktails, which also leads to the rise in demand of the on-trade segment worldwide

Geographic Overview

Geographically, North America is leading the cognac market worldwide and is estimated for the highest revenue-generating region. The robust foothold in North America leads to the higher demands of alcoholic drinks between working-class individuals along with the students, mainly in the United States and Canada.

In addition, several strategic policies applied by the existing market players robust the growth of the market. For instance, Hennessy is involved in the partnership with the USA Basketball, NBA, and WNBA in February 2020. Similarly, with New York City-based designers, Public School the Courvoisier got into partnership in December 2019.

In the Asia Pacific, the global market has seized a significant share of the cognac market. In this region, brand owners have been contemplative about getting rid of the old-styled label and starting with age statements. Moreover, rapid development and rising inclination towards finest spirits among a large number of consumers.

For instance, in 2017-18 as per the BNIC (Bureau National International du Cognac) in China, the export of the cognac rose 8.2% in volume and 5.4% in terms of value. In APAC, India and China are the major potential marketing hub in the region owing to the growing disposable income and rising base of the consumers, which, in turn, is projected to drive the cognac market.

Competitive Insight

Some major players operating the global market include Bacardi, Beam Suntory, Branded Spirits, Courvoisier S.A.S., Davidoff of Geneva USA Online, Inc., E. Remy Martin & Co., Hennessy, Kelt International, Louis Royer SAS, Maison Ferrand, Mewkow, Novovino Wine, Pernod Ricard, Thomas Hine & Co.

Cognac Market Report Scope

Report Attributes

Details

Market size value in 2020

USD 3.81 billion

Revenue forecast in 2028

USD 4.85 billion

CAGR

3.9% from 2021 - 2028

Base year

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Segments covered

By Grade, By Distribution Channel, By Region

Regional scope

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

Key Companies

Bacardi, Beam Suntory, Branded Spirits, Courvoisier S.A.S., Davidoff of Geneva USA Online, Inc., E. Remy Martin & Co., Hennessy, Kelt International, Louis Royer SAS, Maison Ferrand, Mewkow, Novovino Wine,Pernod Ricard, Thomas Hine & Co.

Key Take-Away
Polaris Market Research
Cognac Market | 2021-28 | Size, Industry Report