NEW
YORK, July 18, 2024 /PRNewswire/ -- 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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Cognac Market
Scope
|
Report
Coverage
|
Details
|
Base year
|
2022
|
Historic
period
|
2017 - 2021
|
Forecast
period
|
2023-2027
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
3.64%
|
Market growth
2023-2027
|
USD 897.31
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
2.78
|
Regional
analysis
|
North America, APAC,
Europe, South America, and Middle East and Africa
|
Performing market
contribution
|
North America at
33%
|
Key
countries
|
US, China, Singapore,
UK, and Germany
|
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
|
Market Driver
Cognac is a versatile drink with a wide range of applications.
It can be enjoyed neat, on the rocks, or diluted with water.
Additionally, it 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 quality and versatility.
Hennessy Black, in particular, is
marketed as a mixable brandy with a delicate taste and high alcohol
content, making it ideal for cocktails. Consumers seek unique
experiences and are moving away from traditional beverages like
beer towards cocktails. This trend is driving the growth of the
global cognac market, particularly in countries like the US where
cognac is perceived as a status symbol. The increasing popularity
of cognac-based cocktails in restaurants and bars is expected to
continue, contributing to the market's growth during the forecast
period.
The alcohol market, including cognac and other alcoholic brands,
continues to trend with consumers seeking premium experiences.
Brands like Hennessy and Torres lead the way, while online websites
and restaurants cater to alcohol-oriented communities.
Health-conscious consumers are also exploring 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
alcoholic beverages. Millennials prefer higher alcohol by volume
(ABV) in their very special Under Larsen brand cognac, distilled in
copper pot stills. Craft beverages, including premium alcoholic
liquors and fruit juice base spirits, fuel cocktail culture for
socialization in restaurants and bars.
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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 particularly significant in certain regions
like Germany, France, Italy, Russia, Belgium, and Sweden, where the demand for these alternative
beverages is rising, negatively impacting cognac sales. In
Asia Pacific, China is a significant market for alcoholic
beverages, but the popularity of Baijiu and consumer preference for
beer over spirits pose challenges for cognac growth. To sustain and
expand in this 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) options and seek authentic experiences, favoring craft
beverages over mass-produced spirits. Copper pot stills are used to
distill very special distilled spirits like cognac under the Larsen
brand. Double Toasted cognac, made from white grapes, is a premium
alcoholic liquor gaining popularity. Pandemic phase has led to a
shift in sales of liquor from restaurants and bars to retail
sectors and online shopping platforms. Bacardi India and other
brewing industries capitalize on the drinking culture, with a focus
on health-imparting properties of premium spirits. Super-premium
spirits like Bardinet, Barista cocktails, Quintessence, Revelation,
and Grand Marnier brand are in high demand. The spirits industry
grapples with the changing consumer preferences and production
challenges. Premiumization, cocktail culture, and socialization
continue to drive sales. The ProWine trade fair showcases the
latest trends and profit outcomes for premium spirits. Gen Z and
young adolescents are exploring new flavors, with fruit juice bases
gaining traction. The spirits industry remains resilient, adapting
to market shifts and consumer demands.
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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 distillation
techniques. Export is a key driver for the market's growth, with
major markets including the US, China, and the UK. Brands like Hennessy,
Martell, and Remy Martin dominate
the market due to their long-standing reputation and high-quality
offerings. Producers focus on innovation, such as limited editions
and collaborations, to attract consumers and maintain market
share.
For more information on market segmentation with
geographical analysis including forecast (2023-2027) and historic
data (2017-2021) - Download a Sample Report
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reports
The global beer market is experiencing steady growth, driven by
increasing consumer demand for craft and premium beers. Key players
such as Anheuser-Busch InBev, Heineken, and Carlsberg dominate the
market, leveraging innovative flavors and marketing strategies. The
rise in disposable income and changing lifestyle patterns are
fueling market expansion. Additionally, the growing trend of
health-conscious drinking is leading to the development of
low-alcohol and non-alcoholic beers. Asia-Pacific and North America are significant regions
contributing to the market's growth, with emerging markets
providing new opportunities for expansion.
Research Analysis
The Cognac market is experiencing a resurgence, particularly
among Millennials who are rediscovering this very special distilled
spirit. With an alcohol by volume range of 40-60%, Cognac is a
premium alcoholic liquor produced exclusively in the Cognac region
of France. The traditional
production process involves distilling white grape wine in Copper
pot stills and aging in oak barrels. New trends in the market
include Double Toasted cognac, which undergoes an additional
toasting process for a richer flavor. The craft beverage industry
is also influencing the Cognac market with innovative offerings.
The spirits volume consumption is on the rise, driven by cocktail
culture and socialization in restaurants and bars. Premiumization
is another key trend, with consumers willing to pay a premium for
high-quality Cognac. Meanwhile, the renewable energy sector is
making strides in the production of Cognac. Companies like Flender,
Moventas, Wind Prime, Innergex Renewable Energy, Boswel Spring
Wind, and others are investing in wind farms, such as Dobele Wind
Farm, Karara Wind Farm, and Dulacca Wind Farm, to power their
distilleries and reduce their carbon footprint. Cognac remains a
symbol of luxury and sophistication, appealing to those seeking a
unique and memorable drinking experience.
Market Research Overview
The Cognac market is experiencing a resurgence, driven by the
millennial demographic and the growing 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. The production process involves fermenting the grape
juice and then distilling it in copper pot stills. The market for
very special cognacs, such as Double Toasted and those under the
Under Larsen brand, is seeing significant growth. The spirits
volume consumption is on the rise, fueled by cocktail culture and
socialization in restaurants and bars. Premiumization is a key
trend, with sales of liquor in the super-premium spirits category
driving profit outcomes. The brewing industries and retail sectors
are also embracing cognac, with online shopping platforms and
alcohol-oriented communities playing a growing role in the market.
The pandemic phase has accelerated this trend, with more people
drinking at home and exploring new alcoholic brands like Bardinet,
Barista cocktails, Quintessence, Revelation, and Grand Marnier. Gen
Z and young adolescents are also entering the market, with a
growing interest in alcohol-related content and health-imparting
properties of cognac, such as its anti-inflammatory,
antidepressant, and anti-aging potential. The spirits industry is
responding with new product offerings, such as non-alcoholic
beverages and RTD cocktail mixers, and the ProWine trade fair is a
key platform for showcasing these innovations. Meanwhile, the wind
energy sector is also making headlines, with companies like Bacardi
India, Dana Motion Systems, Moventas, Wind Prime, Innergex
Renewable Energy, Boswel Spring Wind, and Planetary gearboxes
investing in renewable energy to reduce their carbon footprint and
meet growing demand for sustainable production methods.
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
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and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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