Cognac and Brandy Market Report 2025

The cognac and brandy market size has grown strongly in recent years. It will grow from $14.97 billion in 2024 to $15.79 billion in 2025 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to tradition and heritage, globalization of consumer palates, luxury and status symbol, cultural and social significance, rise of mixology.

The cognac and brandy market size is expected to see strong growth in the next few years. It will grow to $19.79 billion in 2029 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to premiumization trend, emerging market growth, e-commerce and online retailing, rise of craft and artisanal production, cultural influences on flavor profiles. Major trends in the forecast period include innovations in packaging, flavor experimentation and infusions, interactive brand experiences, collaborations with mixologists and chefs.

The growing demand for craft beverages is anticipated to drive the growth of the cognac and brandy market in the future. Craft beverages refer to small-batch, traditionally produced, and independently crafted drinks. Cognac and brandy are included in craft beverages for their benefits in slowing signs of aging, managing weight, and alleviating respiratory issues. Moderate consumption of brandy has been linked to improvements in sleep difficulties and patterns, as well as enhancements in heart health and overall cardiac function. For example, in April 2024, the Brewers Association, a US-based non-profit trade organization, reported that the number of operating craft breweries reached a record high of 9,761, which includes 2,092 microbreweries, 3,502 brewpubs, 3,910 taproom breweries, and 257 regional craft breweries. Overall, the total number of operating breweries in the U.S. increased to 9,906, up from 9,824 in 2022. Therefore, the rising demand for craft beverages is driving the growth of the cognac and brandy market.

The cognac and brandy market is poised for expansion due to the burgeoning growth of the food service industry. The food service industry, encompassing businesses engaged in the preparation, distribution, and sale of food and beverages, integrates cognac and brandy into its offerings to elevate culinary experiences. These spirits are utilized for cooking, baking, and crafting sophisticated beverages. According to a USA Today article in August 2023, the U.S. restaurant industry reported $898 billion in sales in 2022, marking a notable increase of $166.5 billion compared to 2021. This robust growth in the food service sector serves as a driving force for the cognac and brandy market.

A prominent trend in the cognac and brandy market is the emphasis on product innovation, with companies strategically leveraging new technologies to maintain their competitive positions. An illustrative example of this trend is Tamworth Distilling, a New England-based distillery that introduced a distinctive limited-edition trout-flavored brandy named House of Tamworth Saison De Frai in November 2023. This unconventional brandy, inspired by the Swift River near the distillery, incorporates smoked trout, maple syrup, and apple brandy, showcasing Tamworth Distilling's commitment to experimentation and creativity. The House of Tamworth Saison De Frai represents a unique expression in the market, reflecting the distillery's dedication to inventive spirits, which also includes other experimental offerings such as roast-turkey-flavored whiskey.

Major players in the cognac and brandy markets are actively pursuing the development of premium brandy, exemplified by Mansion House Chambers, as a strategic approach to maintaining market prominence. Tilaknagar Industries Limited, an India-based beverage company, introduced Mansion House Chambers in November 2023. This premium brandy is characterized by complex fruity aromas and delicate oak notes, offering a smooth and velvety texture. The unique packaging of Mansion House Chambers, featuring a meticulously sculpted cut-glass bottle, communicates opulence, exclusivity, and luxury. This focus on premiumization aligns with the broader trend of elevating product offerings to cater to evolving consumer preferences in the cognac and brandy market.

In September 2023, International Beverage, a United Kingdom-based group of drinks brands, successfully acquired Larsen Cognac business from the Anora Group plc. The financial details of this acquisition were not disclosed. This strategic move by International Beverage is an integral part of its strategy to expand its portfolio of premium spirits brands and strengthen its global distribution network, with the overarching goal of achieving substantial growth on a global level. Anora Group PLC, headquartered in Finland, is primarily engaged in the production of distilled beverages and wines.

Major companies operating in the cognac and brandy market include Hennessy LVMH, Diageo Plc., Suntory Holdings Limited, Pernod Ricard SA, E & J Gallo Winery, Beam Suntory Inc., Campari Group, Remy Martin XO, United Spirits Limited, Emperador Distillers Inc., Martell and Company SA, Radico Khaitan Limited, Tilaknagar Industries Ltd., Miguel Torres SA, Korbel Winery, Copper and Kings, Courvoisier SAS, Louis Royer SAS, Asbach GmbH, Global Spirits, Camus Cognac, Naud Spirits & Distillery, Meukow Cognac, Thomas Hine & Co, Paul Masson, Christian Brothers, Branded Spirits Limited, Delamain Cognac, A. de Fussigny, J.P. Chenet.

North America was the largest region in the cognac and brandy market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cognac and brandy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cognac and brandy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cognac and brandy are both distilled spirits derived from fruit juice, although cognac specifically refers to a type of distilled fruit juice with distinct characteristics. Brandy is recognized for its potential to slow the effects of aging, assist in weight management, and aid in treating respiratory conditions. Cognac is versatile in various beverages, adds excellent flavor to sauces for dishes such as steak and veal, and enhances the taste of desserts.

The primary product types within the category of cognac and brandy include cognac, armagnac, Spanish brandy, and pisco. Cognac specifically denotes high-quality grape brandy produced in the Cognac region of France. These products often come with varying price classifications such as value, premium, high-end premium, and super premium, catering to both household and commercial consumers. Distribution of these products typically occurs through channels known as on-trade (e.g., bars, restaurants) and off-trade (e.g., retail stores).

The cognac and brandy market research report is one of a series of new reports that provides cognac and brandy market statistics, including cognac and brandy industry global market size, regional shares, competitors with a cognac and brandy market share, detailed cognac and brandy market segments, market trends and opportunities, and any further data you may need to thrive in the cognac and brandy industry. This cognac and brandy market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The cognac and brandy market consists of sales of calvados, pisco, and applejack. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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