The global cognac market size was valued at USD 4 billion in 2020 and is expected to grow at USD 5.26 billion by 2027 at a compound annual growth rate (CAGR) of 4% from 2021 to 2027. Increasing acceptance for premium alcoholic drinks among the millennials on a global level is expected to expand the market scope in the next few years. A major factor influencing the growing popularity of the craft product is its exclusivity of production. In a fashion similar to champagne, cognac’s production is strictly limited to its production region Cognac. As a result, the grapes for manufacturing cognac all come from the same area and such products are influenced by the soil of the region. Over the past few years, the consumption of alcoholic drinking has become a social norm during specific events and occasions in North America and Europe. Most employees after work during Friday evenings prefer enjoying a drink with friends and colleagues. Similarly, students on campus are being noticed following a strong drinking culture.
Additionally, alcoholic drinks are considered to be an excellent anxiolytic, and thus a major part of the generation X and Y can be seen enjoying a sip or two as a stress buster. Cognac is generally enjoyed either neat as a single vintage or in blends. The taste and flavour of cognac are dependent on the cellar master’s understanding of Eau-de-vie’s maturity. It generally has a complex flavour and hints of vine flowers, toasted bread, vanilla, cinnamon, dried apricots, candied fruits, chocolate, leather, port, toffee, and spices. Thus, even though it is a type of brandy, its exclusivity lies in its flavour sensation. To decide the taste of cognac, cognac wheel is used, which includes spring, summer, autumn, and winter as the major categories.
V.S. led the market and accounted for more than 50.0% share of the global volume in 2021. This is attributed to the constant demand for new products among customers. In February 2020, Courvoisier S.A.S. launched Avant-Garde Bourbon Cask Edition, which is derived from Courvoisier VS liquid and is further finished in Kentucky Bourbon casks. The product is bottled at 40% ABV, with the notes of vanilla, honey, and sweet marmalade and priced at USD 39.99.
Off-trade led the market and accounted for more than 55.0% share of the global volume in 2021. Consumers prefer buying drinks from various liquor stores as these come at a cheaper price than most other on-trade distribution channels. Furthermore, people fond of collecting and tasting different brands prefer buying from off-trade channels.
The Cognac market is segmented on the basis of grade, distribution and region. On the basis of grade it is segmented as V.S., V.S.O.P., Others. On the basis of distribution it is segmented as On-trade, Off-trade.
North America dominated the market and accounted for over 35.0% share of the global revenue in 2021. This is attributed to the various strategies implemented by the industry in the region. For instance, in December 2021, Courvoisier entered into a partnership with New York City-based designers, Public School. Similarly, in February 2020, Hennessy entered into a partnership with the NBA, Women’s National Basketball Association (WNBA), and USA Basketball. The brand has become the official spirit partner and is better positioned to reach and engage with a broader segment of basketball fans around the NBA’s marquee moments.
Some of the prominent players in the cognac market include: Courvoisier S.A.S., DAVIDOFF OF GENEVA USA ONLINE, INC., E. Rémy Martin & Co., LVMH (HENNESSY), KELT International, Louis Royer SAS, MAISON FERRAND, Mewkow, Pernod Ricard (Martell) and Thomas HINE & Co.
Report : Cognac Market - By Grade (V.S., V.S.O.P., Others), By distribution channel (On-trade, Off-trade), By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America), Industry Analysis, Opportunity and Forecast 2021To 2027.