The global brandy & cognac market in 2024 is worth USD 14 billion and is projected to grow to USD 20 billion by 2032, with a 5.3% CAGR.
Our figures are based on our analysis of five different market research reports. However, our confidence in these figures is strong due to the converging nature of the estimates. A detailed description of our analysis methods is provided below.
Market Size and Growth Metrics
Current Size and Growth Projections
As of 2024, the global brandy & cognac market is valued at about USD 14 billion. Looking ahead, the market is expected to grow at a CAGR of 5.3%, reaching USD 20 billion by 2032.
This growth is driven by the globalization of consumer tastes, where luxury and status symbols play a crucial role, alongside the cultural significance of these beverages in social settings.
Major Market Segmentation
By Product Type
The global cognac and brandy market is segmented into various types, including Cognac, Armagnac, Spanish brandy, and Pisco.
- Cognac remains the leading segment, valued at approximately $14.97 billion in 2024, reflecting its strong association with luxury and heritage.
- Armagnac and Spanish brandy are also significant, but they hold smaller market shares compared to cognac.
- The demand for Pisco is growing, particularly in South America, as consumers seek diverse flavor profiles and unique drinking experiences.
By Region
- North America: Continues to dominate the market with a 35.21% share in 2024, valued at approximately $5.27 billion. The U.S. is a key market, driven by strong demand for distilled spirits and a vibrant cocktail culture.
- Europe: Remains a significant player in the brandy and cognac market, with France leading in cognac production. The region is projected to account for around 30% of the market share in 2024.
- Asia-Pacific: Experiencing rapid growth, this region is projected to reach a market value of $4.5 billion by 2024, fueled by urbanization and rising disposable incomes, particularly in China and India.
- Latin America: Shows promising growth potential, with an estimated market value of $1.2 billion in 2024. Changing consumer preferences and an increasing willingness to try premium products are driving this growth.
- Middle East & Africa: Although growth is slower, there is a rising interest in premium spirits among affluent consumers, with the market expected to reach approximately $800 million in 2024.
By Price Point
The market for brandy and cognac is segmented into value, premium, high-end premium, and super premium categories.
- In 2024, the premium segment is projected to dominate the market, accounting for approximately 40% of the total market share, driven by consumer preference for higher-quality offerings.
- The super premium category is expected to grow significantly, with a projected CAGR of 6.5% from 2024 to 2030, as consumers increasingly seek unique and luxurious experiences.
- The value segment remains popular among budget-conscious consumers, but there is a noticeable shift towards premium products, reflecting a growing willingness to spend on quality.
Industry Trends and Dynamics
Premiumization
The premiumization trend is strong, with consumers increasingly willing to spend on high-quality spirits. In 2024, the premium segment is expected to account for 40% of the total brandy and cognac market, reflecting a growing demand for unique flavors and experiences.
Sales of high-end spirits have seen a 20% increase in recent years, indicating a robust market shift towards premium offerings.
Craft and Artisanal Production
The craft beverage movement is reshaping the market, with small-scale producers gaining popularity for their unique offerings. The craft segment is projected to grow at a CAGR of 8.5% from 2024 to 2030, driven by consumer interest in artisanal production methods.
Emerging markets, particularly in China, India, and Brazil, are witnessing substantial increases in demand for craft cognac and brandy, presenting significant growth opportunities.
Health Consciousness
Moderate consumption of brandy has been linked to potential health benefits, such as improved sleep patterns and heart health, appealing to health-conscious consumers. This trend is supported by an increasing consumer awareness of wellness, with the market for health-conscious alcoholic beverages projected to grow by 13% by the end of 2024.
Industry Drivers and Challenges
Growing Consumer Demand
The cognac and brandy market is projected to reach $12.51 billion in 2024, driven by increasing consumer demand for premium and artisanal spirits.
Rising disposable incomes globally are enabling consumers to spend more on luxury products, further fueling this demand.
Changing consumer preferences, particularly among younger generations, are shifting towards sophisticated and high-quality alcoholic beverages.
Regulatory Hurdles
The brandy and cognac market faces challenges related to regulatory compliance, which can impact production and distribution processes.
Counterfeit products pose a significant risk, potentially damaging brand reputation and consumer trust.
The lengthy aging processes required for high-quality brandy and cognac increase production costs, which can limit accessibility for some consumers.
Consumer Insights
Per Capita Consumption
The per capita consumption of brandy and cognac is projected to increase, with an average of 0.5 liters per person in 2024, reflecting a growing acceptance and appreciation for these spirits among consumers.
Shifts in Consumer Preferences
There is a noticeable shift towards premium and super-premium products, with the premium segment expected to account for 40% of the market share in 2024.
Younger consumers, particularly millennials and Gen Z, are driving demand for unique flavors and artisanal products, leading to a 7.6% growth in the craft and artisanal segment from 2024 to 2030.
The increasing popularity of cocktail culture is also influencing preferences, with a 4% rise in cognac consumption noted in recent years, as consumers seek sophisticated drinking experiences.
Conclusion
In 2024, the global brandy & cognac market is valued at USD 14 billion and is projected to reach USD 20 billion by 2032, with a 5.3% CAGR. Key takeaways include:
- Premiumization: The premium segment will dominate, accounting for 40% of the market in 2024, while the super-premium category will grow at a 6.5% CAGR.
- Craft Trends: The craft segment is growing at an 8.5% CAGR, reflecting rising interest in artisanal products.
- Consumer Shifts: Younger consumers and the cocktail trend are boosting demand for premium and unique offerings.
The future of the brandy & cognac market is set for robust growth, with increasing consumer interest in premium and artisanal products driving the expansion.
References and Data Sources
How did we analyze our Sources?
To gain a complete understanding of the global brandy & cognac market, we’ve analyzed data from five different market research reports. Using our own weighted criteria, we selected the top three reports with the highest scores and based our estimate on their findings.
| BRANDY & COGNAC Analysis | Fortune Business Insights | Market Research Future | GMInsights | The Brainy Insights | The Business Research Company | SUMMARY |
| Published Date | August 19, 2024 | September 2024 | August 2023 | May 2023 | January 2024 | |
| Market Captured | Combined | Combined | – | Combined | Combined | |
| Current 2024 market size | $14B* | $13B | $14B* | $14B* | $15B | $14B |
| Future market size | $18B by 2029 | $20B by 2032 | $21B | $21B by 2032 | $19B by 2033 | $20B by 2032 |
| CAGR | 5.3% (2022-2029) | 5.7% (2024-2032) | 5.3% (2023-2032) | 5.4% (2023-2032) | 5.6% (2024-2033) | 5.3% (2023-2032) |
Please note: Data marked with * is estimated based on original sources.
How did we grade our Sources?
| Score | BRANDY & COGNAC Analysis | Fortune Business Insights | Market Research Future | GMInsights | The Brainy Insights | The Business Research Company | SUMMARY |
| 3 | – Criteria 1: Clear Source | 0 | 0 | 0 | 0 | 0 | |
| 2 | – Criteria 2: Recency | 1 | 1 | 0 | 0 | 0 | |
| 4 | – Criteria 3: Authority | 0 | 0 | 0 | 0 | 0 | |
| 1 | – Criteria 4: Objective & Clear | 0.5 | 0 | 1 | 0.5 | 0.5 | |
| SOURCE GRADE | 2.5 | 2 | 1 | 0.5 | 0.5 | 1.83 |
- 4 = Highly useful, clear, and resistant to manipulation
- 0 = Provides no indication of reliability
| 3 | – Criteria 1: Clear Source Citation | +1 IF: Clearly states where they got the data from. |
| 2 | – Criteria 2: Recency | +1 IF: published or updated the last 3mo. |
| 4 | – Criteria 3: Authority | +1 IF: Govt Agency, Academic Institution, Academic Paper
+1 IF anything else.
|
| 1 | – Criteria 4: Objective & Clear |
+1 IF: The information presented without emotional wording or bias, states the facts cleanly and clearly.
+0.5 IF one of the above.
|
How did we determine our Market Size?
Understanding the market’s direction can be challenging based on these estimates.
However, we are reasonably confident in our projections. The three sources align closely with each other and with other data, supporting the overall growth trend.
We encourage you to critically assess the data and consider various perspectives to form your own insights into the future of the brandy & cognac market.
Nathan has always been captivated by numbers and patterns. With a Master’s degree in Statistics, he’s honed his skills to decipher complex data sets and discern market trends.
Over the past decade, Nathan has worked with various firms compiling and analyzing industry spending figures to forecast market movements.