Table of Contents
Overview
New York, NY – July 10, 2025 – The Global Cognac Market is experiencing steady growth, driven by increasing demand for premium spirits and rising disposable incomes. In 2024, the market was valued at USD 4.3 billion, and it is projected to reach USD 5.8 billion by 2034, growing at a CAGR of 3.1% from 2025 to 2034.
In 2024, V.S.O.P. cognac commanded a 52.4% share of the By Grade segment in the Cognac market, solidifying its leading position. Off-trade channels led the Cognac market in 2024, capturing a 65.7% share of the By Distribution Channel segment. This dominance reflects shifting consumer preferences toward convenience, competitive pricing, and accessibility.
Key Takeaways
- Global Cognac Market is expected to be worth around USD 5.8 billion by 2034, up from USD 4.3 billion in 2024, and grow at a CAGR of 3.1% from 2025 to 2034.
- V.S.O.P. dominates the Cognac market, accounting for 52.4% due to its balanced quality.
- Off-trade channels lead the Cognac market with 65.7%, driven by retail sales and home consumption.
- The North American Cognac market reached a total value of USD 1.9 billion.
How Growth is Impacting the Economy
The Cognac market’s robust growth significantly impacts the global economy. North America’s USD 1.9 billion market, driven by premium spirit demand, boosts retail and hospitality sectors, creating jobs in bars, restaurants, and liquor stores. Off-trade dominance fuels e-commerce and logistics, with online platforms expanding delivery networks and employment. In Europe, stable demand supports agricultural and distillery industries, particularly in France, where Cognac production sustains rural economies.
Emerging markets like Asia Pacific and the Middle East & Africa drive export revenues, benefiting trade balances. Rising disposable incomes in key regions increase consumer spending, further stimulating economic activity. The premiumization trend encourages investment in branding and marketing, fostering innovation in packaging and distribution. However, supply chain pressures and raw material costs challenge smaller producers. Overall, Cognac’s growth enhances economic vitality, supports job creation, and strengthens global trade networks, particularly in the luxury and retail sectors.
➤ Curious about the content? Explore a sample copy of this report – https://market.us/report/global-cognac-market/request-sample/
Strategies for Businesses
Businesses in the Cognac market should leverage premiumization trends by emphasizing V.S.O.P.’s 52.4% market dominance through targeted marketing campaigns highlighting its versatility and quality. Strengthening off-trade channels, which hold 65.7% of distribution, is key to investing in online platforms with enhanced user experiences, customer reviews, and promotions.
Expand into emerging markets like Asia Pacific and the Middle East & Africa with tailored branding for affluent consumers. Collaborate with upscale bars and restaurants to boost on-trade visibility. Sustainable production and innovative packaging can attract eco-conscious buyers. Finally, capitalize on North America’s 45.7% share by aligning with nightlife trends and gifting occasions.
Report Scope
| Market Value (2024) | USD 4.3 Billion |
| Forecast Revenue (2034) | USD 5.8 Billion |
| CAGR (2025-2034) | 3.1% |
| Segments Covered | By Grade (V.S., V.S.O.P., Others), By Distribution Channel (Off-Trade, On-Trade) |
| Competitive Landscape | Brown-Forman Corporation, Camus Cognac, Constellation Brands, Inc., Courvoisier S.A.S., E. Rémy Martin & Co., HENNESSY, Kelt Cognac, Louis Royer, LVMH Moet Hennessy Louis Vuitton, MAISON FERRAND, Pernod Ricard, Remy Cointreau |
➤ Directly purchase a copy of the report – https://market.us/purchase-report/?report_id=150882
Key Market Segments
By Grade Analysis
- In 2024, V.S.O.P. cognac commanded a 52.4% share of the By Grade segment in the Cognac market, solidifying its leading position. Its dominance stems from a well-balanced flavor profile, offering depth and complexity while remaining more affordable than premium grades. V.S.O.P.’s smooth, versatile nature appeals to a broad audience, from seasoned cognac enthusiasts to younger, trend-driven consumers.
- Its suitability for both sipping and mixing enhances its popularity in upscale bars, lounges, and restaurants, where premium spirits are increasingly favored. Global recognition, consistent availability, and a compelling price-quality balance further bolster V.S.O.P.’s market leadership, making it a top choice for gifting and special occasions across mature and emerging markets.
By Distribution Channel Analysis
- Off-trade channels led the Cognac market in 2024, capturing a 65.7% share of the By Distribution Channel segment. This dominance reflects shifting consumer preferences toward convenience, competitive pricing, and accessibility. Off-trade outlets, including liquor stores, supermarkets, and online platforms, offer a wide selection of Cognac brands and price points, catering to both personal consumption and gifting needs.
- The rise of at-home consumption, particularly in urban and suburban areas, has fueled off-trade growth. Online retail has further accelerated this trend by providing detailed product information, customer reviews, and convenient delivery options, empowering informed purchasing decisions.
Regional Analysis
North America led the global Cognac market with a 45.7% share, valued at USD 1.9 billion. This dominance is fueled by growing demand for premium spirits, a vibrant nightlife culture, and rising disposable incomes in key markets like the United States and Canada.
Europe maintains a steady market presence, underpinned by its deep cultural ties to Cognac and consistent demand across Western European nations. The Asia Pacific region shows strong growth potential, with increasing Cognac awareness and adoption in markets like China and Japan, though it trails behind North America and Europe in market share.
The Middle East & Africa are emerging as a market for Cognac, driven by rising luxury preferences among affluent urban consumers. Latin America, while smaller, is gradually expanding, supported by improving economic conditions and growing interest in imported premium spirits. Overall, North America drives the Cognac market in both value and share, but other regions contribute to global growth, shaped by distinct cultural, economic, and consumption trends.
Recent Developments
1. Brown-Forman Corporation
- Brown-Forman, known for its Jack Daniel’s brand, has been expanding its premium spirits portfolio, including Cognac. The company has focused on sustainability initiatives, such as reducing carbon emissions in production. While not a traditional Cognac leader, Brown-Forman leverages its distribution strength to push premium spirits in global markets.
2. Camus Cognac
- Camus Cognac recently launched Camus Borderies XO, emphasizing single-estate production from the rare Borderies region. The brand is also investing in sustainable packaging and eco-friendly distillation methods. Additionally, Camus expanded its presence in Asia, targeting luxury consumers.
3. Constellation Brands, Inc.
- Constellation Brands, owner of High West Distillery, has been diversifying into Cognac through strategic partnerships. While primarily wine and beer-focused, the company has shown interest in premium spirits, including potential Cognac acquisitions to strengthen its portfolio.
4. Courvoisier S.A.S. (Beam Suntory)
- Courvoisier released Courvoisier Mizunara, a Cognac aged in rare Japanese oak barrels, blending French and Japanese craftsmanship. The brand is also enhancing its digital marketing, collaborating with influencers to attract younger drinkers.
5. E. Rémy Martin & Co. (Remy Cointreau Group)
- Rémy Martin launched Rare Cask 003, an ultra-premium Cognac from hand-selected barrels. The brand is also expanding in China and the U.S., focusing on luxury experiences like exclusive tasting events. Sustainability efforts include regenerative agriculture for vineyards.
Conclusion
The Cognac market in 2024, led by North America’s USD 1.9 billion shares and V.S.O.P.’s prominence, reflects robust global demand. Off-trade channels dominate distribution, driven by convenience and online retail. Growth fuels economic benefits, from job creation to trade expansion. Businesses should focus on digital strategies, premium branding, and emerging markets to stay competitive. With premiumization and rising incomes shaping the future, the Cognac market is set for sustained growth, reinforcing its role in the global luxury spirits sector.
Discuss Your Needs With Our Analyst
Please share your requirements with more details so our analyst can check if they can solve your problem(s)
