Cognac Market: Global Industry Research Report 2020-2027 | Envisage Research
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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.

Published Date: May 2021

No. of Pages: 191

Status: Published

Report Code: EMR100628

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.

Furthermore, the consumption of cognac in cocktails has been more than its neat consumption. Some of these popular blends are Almond Crusta, Bermuda Highball, Sidecar and Bamboo 2, Fleur de "Lees", French 75, Sazerac, Mata Hari, Mr. Tallymon, Nick & Janae, and Vieux Carre. Thus, the cognac houses have been creating products with flavours that complement the cocktail.

Some of the prominent players in the cognac market include: Courvoisier S.A.S., DAVIDOFF OF GENEVA USA ONLINE, INC., E. Remy Martin & Co., LVMH (HENNESSY), KELT International, Louis Royer SAS, MAISON FERRAND, Mewkow, Pernod Ricard (Martell) and Thomas HINE & Co.

Analyst Commentary

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.

V.S.O.P. is expected to expand at the fastest CAGR of 6.8% from 2021 to 2027 in terms of volume. Various product launches are contributing significantly to the growth of the segment. For instance, in November 2021, Altia launched a limited-edition cognac under its Larsen brand. The VSOP Double Toasted cognac has been aged in twice toasted handcrafted barrels. The additional charring induces a sweet aroma of vanilla, toffee, and other roasted notes. It contains 40% ABV and is available for sale in Finland and Norway. A 500mL bottle is priced at EUR 38.

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.
On-trade is expected to register the fastest CAGR of 6.5% from 2021 to 2027 in terms of volume. The get together in bars, restaurants, and various other eateries have enhanced the sale from on-trade channels. Furthermore, certain dishes and recipes sold in the fine-dine restaurants go extremely well with the cognac, thus fueling cognac demand. Along with that, the demand for various cocktails is adding on to the growth of the channel.

Segmentation

The Cognac market is segmented on the basis of grade, distribution channel and region. On the basis of grade V.S., V.S.O.P. and Others. On the basis of distribution channel it is segmented into On-trade, Off-trade.

Regional Analysis

North America dominated the market and accounted for over 36% share of the global revenue in 2020. 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.

Asia Pacific is expected to expand at the fastest CAGR of 4.5% from 2021 to 2027 in terms of revenue. The brand owners in the region have been pondering over getting rid of the traditional label and beginning with age statements. It is expected that the improvement in the label will aid the understanding and stability of cognac, which will further help in enhancing the sales. Courvoisier has already dabbled with this, by launching its 12 and 21 range.

TABLE OF CONTENTS
Chapter 1. Executive Summary
Chapter 2. Research Methodology
2.1. Research approach
2.2. Scope, definition, and assumptions
2.3. Data Sources
2.3.1. Secondary Sources
2.3.1.1. Preliminary data mining
2.3.2. Primary Sources
2.3.2.1. Statistical Model
2.3.2.2. Data Triangulation
2.3.2.3. Research Objective
Chapter 3. Market Outlook
3.1. Introduction
3.2. Key trends
3.2.1. xx
3.3. Market drivers
3.3.1. Impact analysis of Market Drivers
3.4. Market restraints
3.4.1. Impact analysis of Market Restraints
3.5. Market opportunities
3.5.1. Impact analysis of Market Opportunities
3.6. Market Challenges
3.6.1. Impact analysis of Market Trends
3.7. Porter’s Five Forces’ analysis
3.7.1. Bargaining Engine Powered of Suppliers
3.7.2. Bargaining Engine Powered of Buyers
3.7.3. Threat of New Entrant
3.7.4. Threat of Substitutes
3.7.5. High Competitive Rivalry
3.8. Value chain analysis
Chapter 4. COVID-19 Impact On Cognac Market
Chapter 5. Global Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
5.1. Global Cognac Market Share, By Grade, 2015 - 2027 (USD Billion)
5.1.1. V.S.
5.1.1.1. Market Size and Projections, 2015 - 2027 (USD Billion)
5.1.1.2. Market Size and Projections, by Region, 2015 - 2027 (USD Billion)
5.1.2. V.S.O.P
5.1.2.1. Market Size and Projections, 2015 - 2027 (USD Billion)
5.1.2.2. Market Size and Projections, by Region, 2015 - 2027 (USD Billion)
5.1.3. Others
5.1.3.1. Market Size and Projections, 2015 - 2027 (USD Billion)
5.1.3.2. Market Size and Projections, by Region, 2015 - 2027 (USD Billion)
Chapter 6. Global Cognac Market Overview, By Distribution Channel, 2015 - 2027 (USD Billion)
6.1. Global Cognac Market Share, By Form, 2015 - 2027 (USD Billion)
6.1.1. On-trade
6.1.1.1. Market Size and Projections, 2015 - 2027 (USD Billion)
6.1.1.2. Market Size and Projections, by Region, 2015 - 2027 (USD Billion)
6.1.2. Off-trade
6.1.2.1. Market Size and Projections, 2015 - 2027 (USD Billion)
6.1.2.2. Market Size and Projections, by Region, 2015 - 2027 (USD Billion)
Global Cognac Market Overview, By Geography, 2015 - 2027 (USD Billion)
6.2. Global Cognac Market Share, By Geography, 2015 - 2027 (USD Billion)
6.2.1. Market Size and projections, by Countries, 2015 - 2027 (USD Billion)
6.2.2. Market Share and CAGR Comparison, by Countries, 2020 & 2027 (%)
Chapter 7. North America Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
7.1. North America Cognac Market Overview, 2015 - 2027 (USD Billion)
7.1.1. Market size and projections, 2015 - 2027 (USD Billion)
7.1.2. North America Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
7.1.3. North America Cognac Market Overview, By Distribution Channel, 2015 - 2027 (USD Billion)
7.1.4. North America Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
7.1.4.1. U.S. Cognac Market Overview, 2015 - 2027 (USD Billion)
7.1.4.1.1. Market size and projections, 2015 - 2027 (USD Billion)
7.1.4.1.2. U.S. Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
7.1.4.1.3. Other Segments
7.1.4.2. Canada Cognac Market Overview, 2015 - 2027 (USD Billion)
7.1.4.2.1. Market size and projections, 2015 - 2027 (USD Billion)
7.1.4.2.2. Canada Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
7.1.4.2.3. Other Segments
7.1.4.3. Mexico Cognac Market Overview, 2015 - 2027 (USD Billion)
7.1.4.3.1. Market size and projections, 2015 - 2027 (USD Billion)
7.1.4.3.2. Mexico Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
7.1.4.3.3. Other Segments
Chapter 8. Europe Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
8.1. Europe Cognac Market Overview, 2015 - 2027 (USD Billion)
8.1.1. Market size and projections, 2015 - 2027 (USD Billion)
8.1.2. Europe Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
8.1.3. Europe Cognac Market Overview, By Distribution Channel, 2015 - 2027 (USD Billion)
8.1.4. Europe Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
8.1.4.1. Germany
8.1.4.1.1. Market size and projections, 2015 - 2027 (USD Billion)
8.1.4.1.2. Germany Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
8.1.4.1.3. Others Segments
8.1.4.2. France
8.1.4.2.1. Market size and projections, 2015 - 2027 (USD Billion)
8.1.4.2.2. France Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
8.1.4.2.3. Others Segments
8.1.4.3. UK
8.1.4.3.1. Market size and projections, 2015 - 2027 (USD Billion)
8.1.4.3.2. UK Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
8.1.4.3.3. Others Segments
8.1.4.4. Italy
8.1.4.4.1. Market size and projections, 2015 - 2027 (USD Billion)
8.1.4.4.2. Italy Cognac Market Overview, By Grade 2015 - 2027 (USD Billion)
8.1.4.4.3. Others Segments
8.1.4.5. Spain
8.1.4.5.1. Market size and projections, 2015 - 2027 (USD Billion)
8.1.4.5.2. Spain Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
8.1.4.5.3. Others Segments
8.1.4.6. Rest of Europe
8.1.4.6.1. Market size and projections, 2015 – 2025
8.1.4.6.2. Rest of Europe Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
8.1.4.6.3. Others Segments
Chapter 9. Asia Pacific Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
9.1. Asia Pacific Cognac Market Overview, 2015 - 2027 (USD Billion)
9.1.1. Market size and projections, 2015 - 2027 (USD Billion)
9.1.2. Asia Pacific Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
9.1.3. Asia Pacific Cognac Market Overview, By Distribution Channel, 2015 - 2027 (USD Billion)
9.1.4. Asia Pacific Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
9.1.4.1. India
9.1.4.1.1. Market size and projections, 2015 - 2027 (USD Billion)
9.1.4.1.2. India Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
9.1.4.1.3. Other Segments
9.1.4.2. China
9.1.4.2.1. Market size and projections, 2015 - 2027 (USD Billion)
9.1.4.2.2. China Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
9.1.4.2.3. Other Segments
9.1.4.3. Japan
9.1.4.3.1. Market size and projections, 2015 - 2027 (USD Billion)
9.1.4.3.2. Japan Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
9.1.4.3.3. Other Segments
9.1.4.4. South Korea
9.1.4.4.1. Market size and projections, 2015 - 2027 (USD Billion)
9.1.4.4.2. South Korea Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
9.1.4.4.3. Other Segments
9.1.4.5. Rest of Asia Pacific
9.1.4.5.1. Market size and projections, 2015 - 2027 (USD Billion)
9.1.4.5.2. Rest of Asia Pacific Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
9.1.4.5.3. Other Segments
Chapter 10. Middle East & Africa Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
10.1. Middle East & Africa Cognac Market Overview, 2015 - 2027 (USD Billion)
10.1.1. Market size and projections, 2015 - 2027 (USD Billion)
10.1.2. Middle East & Africa Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
10.1.3. Middle East & Africa Cognac Market Overview, By Distribution Channel, 2015 - 2027 (USD Billion)
10.1.4. Middle East & Africa Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
10.1.4.1. GCC
10.1.4.1.1. Market size and projections, 2015 - 2027 (USD Billion)
10.1.4.1.2. GCC Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
10.1.4.1.3. Other Segments
10.1.4.2. South Africa
10.1.4.2.1. Market size and projections, 2015 - 2027 (USD Billion)
10.1.4.2.2. South Africa Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
10.1.4.2.3. Other Segments
10.1.4.3. Rest of Middle East & Africa
10.1.4.3.1. Market size and projections, 2015 - 2027 (USD Billion)
10.1.4.3.2. Rest of Middle East & Africa Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
10.1.4.3.3. Other Segments
Chapter 11. South America Cognac Market Overview, By Countries, 2015 - 2027 (USD Billion)
11.1. South America Cognac Market Overview, 2015 - 2027 (USD Billion)
11.1.1. Market size and projections, 2015 - 2027 (USD Billion)
11.1.2. South America Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
11.1.3. South America Cognac Market Overview, By Distribution Channel, 2015 - 2027 (USD Billion)
11.1.4. South America Cognac Market Overview, By Countries, 2015- 2026 (USD Billion)
11.1.5. Brazil
11.1.5.1. Market size and projections, 2015 - 2027 (USD Billion)
11.1.5.2. Brazil Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
11.1.5.3. Other Segments
11.1.6. Argentina
11.1.6.1. Market size and projections, 2015 - 2027 (USD Billion)
11.1.6.2. Argentina Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
11.1.6.3. Other Segments
11.1.7. Rest of South America
11.1.7.1. Market size and projections, 2015 – 2027
11.1.7.2. Rest of South America Cognac Market Overview, By Grade, 2015 - 2027 (USD Billion)
11.1.7.3. Other Segments
Chapter 12. Competitive Landscape
12.1. Competitive environment, 2020
12.2. Strategic framework
12.2.1. Partnership/agreement
12.2.2. Expansion
12.2.3. Mergers & Acquisitions
12.2.4. New Distribution channel development
Chapter 13. Key Vendor Analysis
13.1. Courvoisier S.A.S.
13.1.1. Company overview
13.1.2. Financial performance
13.1.3. Distribution channel Benchmarking
13.1.4. Recent initiatives
13.1.5. SWOT analysis
13.2. DAVIDOFF OF GENEVA USA ONLINE, INC
13.2.1. Company overview
13.2.2. Financial performance
13.2.3. Distribution channel Benchmarking
13.2.4. Recent initiatives
13.2.5. SWOT analysis
13.3. E. Rémy Martin & Co.
13.4. LVMH (HENNESSY)
13.5. KELT International
Chapter 14. Cognac Market Cost Analysis
14.1. Cognac Market Key Raw Material Analysis
14.1.1. Key Raw Material
14.1.2. Price Trend of Key Raw Material
14.1.3. Key Suppliers of Raw Material
14.1.4. Market Concentration Rate of Raw Material
Chapter 15. Industrial Chain, Sourcing Strategy and Downstream Buyers
15.1. Cognac Market Industrial Chain Analysis
15.2. Upstream Raw Material Sourcing
15.3. Raw Material Source of Cognac Market Major Manufacturers in 2021
15.4. Downstream Buyers
Chapter 16. Marketing Strategy Analysis, Distributors/Traders
16.1. Marketing Channel
16.1.1. Direct Marketing
16.1.2. Indirect Marketing
16.1.3. Marketing Channel Development Trend
16.2. Market Positioning
16.2.1. Pricing Strategy
16.2.2. Brand Strategy
16.3. Distributors/Traders List
Chapter 17. Market Effect Factors Analysis
17.1. Technology Progress/Risk
17.1.1. Substitutes Threat
17.1.2. Technology Progress in Related Distribution channel
17.2. Consumer Needs/Customer Preference Change
17.3. Economic/Political Environmental Change
Chapter 18. Future Outlook of the Market
Disclaimer

List of Figures
1. Market segmentation
2. Value chain analysis
3. Porter’s Five Forces’ analysis
4. Engine Powered of Suppliers
5. Engine Powered of Buyers
6. Threat of New Entrants
7. Threat of Substitute
8. Competitive Rivalry
9. Global Cognac Market share, By Grade, 2020 & 2027 (%)
10. Global Cognac Market share, by V.S., By Grade, 2020 & 2027 (USD Billion)
11. Global Cognac Market share, by V.S.O.P, By Grade, 2020 & 2027 (USD Billion)
12. Global Cognac Market share, by Others, By Grade, 2020 & 2027 (USD Billion)
13. Global Cognac Market share, By Distribution Channel, 2020 & 2027 (%)
14. Global Cognac Market share, by Off-trade, By Distribution Channel, 2020 & 2027 (USD Billion)
15. Global Cognac Market share, by On-trade, By Distribution Channel, 2020 & 2027 (USD Billion)
16. Global Cognac Market share, by Region, 2020 & 2027 (%)
17. Global Cognac Market share, by region, 2020 - 2027(USD Billion)
18. North America Cognac Market , 2020 - 2027(USD Billion)
19. North America Cognac Market share, by Countries, 2020 & 2027 (%)
20. U.S. Cognac Market , 2020 - 2027(USD Billion)
21. Canada Cognac Market , 2020 - 2027(USD Billion)
22. Europe Cognac Market , 2020 - 2027(USD Billion)
23. Europe Cognac Market share, by Countries, 2020 & 2027 (%)
24. Spain Cognac Market , 2020 - 2027(USD Billion)
25. UK Cognac Market , 2020 - 2027(USD Billion)
26. Italy Cognac Market , 2020 - 2027(USD Billion)
27. Germany Cognac Market , 2020 - 2027(USD Billion)
28. France Cognac Market , 2020 - 2027(USD Billion)
29. Rest of Europe Cognac Market , 2020 - 2027(USD Billion)
30. Asia-Pacific Cognac Market , 2020 - 2027(USD Billion)
31. Asia-Pacific Cognac Market share, by Countries, 2020 & 2027 (%)
32. China Cognac Market , 2020 - 2027(USD Billion)
33. India Cognac Market , 2020 - 2027(USD Billion)
34. Australia Cognac Market , 2020 - 2027(USD Billion)
35. Japan Cognac Market , 2020 - 2027(USD Billion)
36. Rest of Asia-Pacific Cognac Market , 2020 - 2027(USD Billion)
37. Middle East & Africa Cognac Market , 2020 - 2027(USD Billion)
38. Middle East & Africa Cognac Market share, by Countries, 2020 & 2027 (%)
39. GCC Cognac Market , 2020 - 2027(USD Billion)
40. South Africa Cognac Market , 2020 - 2027(USD Billion)
41. Rest Of Middle East & Africa Cognac Market , 2020 - 2027(USD Billion)
42. South America Cognac Market , 2020 - 2027(USD Billion)
43. Brazil Cognac Market , 2020 - 2027(USD Billion)
44. Mexico Cognac Market , 2020 - 2027(USD Billion)
45. Argentina Cognac Market , 2020 - 2027(USD Billion)
46. Rest Of South America Cognac Market , 2020 - 2027(USD Billion)

List of Tables

1. Impact of Market drivers
2. Impact of Market restraints
3. Global Cognac Market , 2020-2027 (USD Billion)
4. Cognac requirement, by country, 2020-2027, (USD Billion)
5. North America Cognac Market , By Grade, 2020-2027 (USD Billion)
6. North America Cognac Market , By Distribution Channel, 2020-2027 (USD Billion)
7. Europe Cognac Market , By Grade, 2020-2027 (USD Billion)
8. Europe Cognac Market , By Distribution Channel, 2020-2027 (USD Billion)
9. Asia Pacific Cognac Market , By Grade, 2020-2027 (USD Billion)
10. Asia Pacific Cognac Market , By Distribution Channel, 2020-2027 (USD Billion)
11. Middle East & Africa Cognac Market , By Grade, 2020-2027 (USD Billion)
12. Middle East & Africa Cognac Market , By Distribution Channel, 2020-2027 (USD Billion)
13. South America Cognac Market , By Grade, 2020-2027 (USD Billion)
14. South America Cognac Market , By Distribution Channel, 2020-2027 (USD Billion)
15. Global Cognac Market, Company Market Share, 2020 & 2027(%)
16. Courvoisier S.A.S. : Product Benchmarking
17. Courvoisier S.A.S. : Financial Performance
18. DAVIDOFF OF GENEVA USA ONLINE, INC. : Product Benchmarking
19. DAVIDOFF OF GENEVA USA ONLINE, INC. : Financial Performance
20. E. Rémy Martin & Co. : Product Benchmarking
21. E. Rémy Martin & Co. : Financial Performance
22. LVMH (HENNESSY) :Product Benchmarking
23. LVMH (HENNESSY) :Financial Performance
24. KELT International : Product Benchmarking
25. KELT International : Financial Performance

The Leading Key Players in Cognac Market

Courvoisier S.A.S.
DAVIDOFF OF GENEVA USA ONLINE Inc.
E. Remy Martin & Co.
LVMH (HENNESSY)
KELT International
Louis Royer SAS
MAISON FERRAND
Mewkow
Pernod Ricard (Martell) and Thomas HINE & Co.