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NEW YORK, Sept. 5, 2024 /PRNewswire/ -- Report on how AI is driving market transformation- 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.
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Technavio has announced its latest market research report titled Global Cognac Market 2023-2027
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| Forecast period |
2023-2027 |
| Base Year |
2022 |
| Historic Data |
2017 - 2021 |
| Segment Covered |
Distribution Channel (Off trade and On trade ), Product (VS, VSOP, and XO ), and Geography (North America, APAC, Europe, South America, and Middle East and Africa) |
| Region Covered |
North America, APAC, Europe, South America, and Middle East and Africa |
| 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 |
Key Market Trends Fueling Growth
Cognac is a versatile drink with a wide range of applications. It can be enjoyed neat, on the rocks, or diluted with water. Additionally, cognac 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 distinct flavors and high quality. Hennessy Black, in particular, is marketed as a mixable brandy with a delicate taste and high alcohol content, making it ideal for dilution and cocktail creation. Cognac's growing popularity is driven by consumers seeking unique experiences and moving away from traditional beverages. This trend is particularly noticeable in the US, where cognac is often associated with status and sophistication. As a result, the global cognac market is expected to grow due to the increasing number of restaurants and bars offering cognac-based cocktails.
The alcohol market, including cognac and other alcoholic brands, is experiencing trends such as increased online sales and alcohol-oriented communities. Brands like Hennessy and Torres continue to dominate the scene. Health-conscious consumers seek 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 premium alcoholic liquors like very special cognac, distilled spirits, and craft beverages. Millennials prefer higher alcohol by volume and unique offerings, driving the demand for craft beverages and cocktail culture. Socialization remains a key factor in the consumption of premium alcoholic liquors in restaurants and bars. Copper pot stills continue to be used in the production of very special cognacs like Under Larsen's Double Toasted cognac. Fruit juice bases and white grapes are popular in the production of premium alcoholic liquors. The spirits volume consumption is expected to grow, driven by the cocktail culture and socialization trends.
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Market
Challenges
The cognac market faces challenges from increasing competition with other alcoholic beverages, such as vodka, rum, and whiskey. This competition is expected to negatively impact sales and revenues in certain regions like Germany, France, Italy, Russia, Belgium, and Sweden. In APAC, China is the largest market for alcoholic beverages, but the market is dominated by
Baijiu, and consumers prefer beer over spirits, which will negatively impact cognac sales. To sustain and grow in the 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) drinks and are moving towards craft beverages, affecting the sales of traditional distilled spirits like Cognac. Copper pot stills are used to produce very special Cognacs under the Larsen brand, but the market for premium alcoholic liquors is increasingly competitive. The brewing industries and retail sectors, including restaurants and bars, are embracing premiumization, leading to a rise in sales of premium spirits. However, the pandemic phase has disrupted the profit outcome for the spirits industry, with online shopping platforms like Bacardi India gaining popularity. Gen Z and young adolescents are turning to health-imparting properties of alcohol, such as anti-inflammatory, antidepressant, and anti-aging potential, which could open new opportunities for high-end cognacs. Brands like Bardinet, Barista cocktails, Quintessence, Revelation, and Grand Marnier are innovating with fruit juice bases and super-premium spirits. The ProWine trade fair is a key platform for showcasing these offerings to the global market. The spirits industry must adapt to these trends to maintain its share in the premium alcohol market.
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Segment Overview
This cognac market report extensively covers market segmentation by
Distribution Channel
1.1 Off trade
1.2 On trade
Product
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 following traditional methods. The market value has been growing steadily due to increasing demand, particularly in Asia. Exports to China and the US are major contributors to this growth. Consumers value Cognac for its unique taste and prestige, making it a premium spirit choice. Producers invest in research and development to maintain quality and innovation. The market is competitive, with key players like Hennessy, Remy Martin, and Martell dominating. Overall, the Cognac market is a thriving business with a rich heritage and promising future.
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Research Analysis
The Cognac market is experiencing a resurgence, particularly among Millennials who are rediscovering this very special distilled spirit. Cognac is known for its high alcohol by volume (ABV) and is traditionally produced using Copper pot stills. The Under Larsen brand, for instance, offers a Double Toasted cognac, adding an extra layer of complexity to the spirit. Cognac is a premium alcoholic liquor, often enjoyed neat or as a base for cocktails in the growing cocktail culture. Its consumption is not just limited to home settings but is also popular in restaurants and bars. The trend towards premiumization in the spirits industry is driving the growth of the Cognac market. Flender, Moventas, Wind Prime, Innergex Renewable Energy, Boswel Spring Wind, Dobele Wind Farm, and Karaara Wind Farm are some of the companies leading the charge in the renewable energy sector, powering the production of this craft beverage. White grapes, primarily Ugni Blanc and Colombard, are used to produce Cognac. The fruit juice base is fermented and distilled, resulting in a unique and delicious spirit. Despite the increasing popularity of craft beverages, Cognac remains a standout in the world of premium alcoholic liquors.
Market Research Overview
The Cognac market is experiencing a surge in demand, particularly among millennials and Gen Z, who are driving the 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, aged in copper pot stills. Its very special character and high-end status make it a popular choice for cocktail culture and socialization in restaurants and bars. The spirits industry, including cognac, has seen a shift towards premiumization and super-premium spirits, with sales of liquor reaching record highs despite the pandemic phase. The brewing industries and retail sectors are also capitalizing on this trend, with online shopping platforms and alcohol-oriented communities becoming increasingly popular. Cognac production involves distillation and aging in oak barrels, with brands like Bardinet, Barista cocktails, Campari Group, Quintessence, Revelation, and Grand Marnier leading the way. The health-imparting properties of cognac, including its anti-inflammatory, antidepressant, and anti-aging potential, add to its allure. The spirits industry is also embracing renewable energy, with companies like Dana Motion Systems, Moventas, Wind Prime, Innergex Renewable Energy, Boswel Spring Wind, and Planetary gearboxes investing in wind energy to power their production processes. Despite the focus on premium spirits, non-alcoholic beverages and RTD cocktail mixers are also gaining popularity among health-conscious consumers. The Future Drinks Expo and ProWine trade fair are platforms for showcasing the latest innovations in the spirits industry. Overall, the market for cognac and other premium spirits is expected to continue growing, driven by changing consumer preferences and a focus on sustainability.
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
Product
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
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UK: +44 203 893 3200
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SOURCE Technavio
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