Cognac & Brandy Market Report Scope & Overview:

The global Cognac & Brandy Market was valued at USD 14.10 Billion in 2025 and is expected to reach USD 24.20 Billion by 2035, growing at a CAGR of 6.20% from 2026 to 2035.

The industry remains highly influenced by sustainable packaging, traditional barrels for maturation, changes in demographics, and the rapid growth of e-commerce sales channels. Premiumization is one of the biggest game-changers which has been impacting the sector, with consumers in North America, Europe, and Asia Pacific switching to aged premium spirits from standard blends in spite of the challenging near-term trade policy environment for the category.

In July 2025, China levied duties of up to 35% on brandy produced in the European Union following the results of its anti-dumping investigation against European brandies, while the leading cognac brands such as Hennessy, owned by LVMH, and Martell, owned by Pernod Ricard, along with Rémy Martin of Rémy Cointreau secured exemptions on condition of minimum price requirements.

Market Size and Forecast

• Market Size in 2026E: USD 14.90 Billion

• Market Size by 2035: USD 24.20 Billion

• CAGR: 6.20% from 2026 to 2035

• Fastest Growing Region: Asia Pacific

• Largest Region: North America

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Cognac & Brandy Market Trends

• Growing premiumization trend is driving disproportionately strong growth for XO and Hors d'âge categories relative to the broader market.

• Rising younger and female consumer appeal is expanding cognac and brandy consumption beyond traditional after-dinner drinking occasions.

• Expanding cocktail culture and mixology partnerships are repositioning heritage spirits as versatile ingredients for modern bar programs.

• Increasing sustainable packaging investment, including cork sourcing and bottle recycling initiatives, is reshaping brand environmental commitments.

• Growing e-commerce distribution expansion is broadening consumer access to premium and limited-edition cognac and brandy expressions globally.

U.S. Cognac & Brandy Market Outlook

The U.S. Cognac & Brandy Market was valued at USD 4.27 Billion in 2025 and is projected to reach USD 7.80 Billion by 2035, growing at a CAGR of 6.20% during 2026-2035.

The strong cultural relevance and brand loyalty, especially in the hip-hop and sports cultures, have enabled cognac to maintain its place in the American spirits market despite recent soft demand in the product's favor. Top players are continuously focusing on innovation in premium and super-premium products; major manufacturers report that more than three quarters of their portfolio of products are positioned in the super-premium category. Increased consumer moderation trend and stiff competition from premium tequila pose challenges to volume growth in the coming periods, although producers are confident that quality-based positioning will aid category recovery in the future.

The company behind Hennessy, Moët Hennessy, adopted strategies for brand evolution in 2026 through cocktails, as it dealt with revenue falls in three consecutive years with cognac being identified as its worst performing category due to poor demand and tariffs in America.

Cognac & Brandy Market Segment Analysis

• By Type, Cognac led the Cognac & Brandy Market with a 42.60% share in 2025, while Fruit Brandy is the fastest-growing type segment with a CAGR of 7.40% from 2026-2035.

• By Grade/Age, VS led the Cognac & Brandy Market with a 62.60% share in 2025, while XO/Hors d'âge is the fastest-growing grade/age segment with a CAGR of 8.60% from 2026-2035.

• By Price Tier, Standard led the Cognac & Brandy Market with a 52.60% share in 2025, while Super-Premium is the fastest-growing price tier segment with a CAGR of 9.20% from 2026-2035.

• By Distribution Channel, Off-Trade/Retail led the Cognac & Brandy Market with a 58.60% share in 2025, while Online/E-commerce is the fastest-growing distribution channel segment with a CAGR of 10.40% from 2026-2035.

By Type, Cognac Dominated the Market While Fruit Brandy Is the Fastest-Growing Segment

The Cognac segment topped the Cognac & Brandy Market in terms of revenue share at 42.60% in 2025, owing to cognac being the most internationally known and premium-situated segment in the overall family of brandies regulated by French appellation control guidelines. The distinctive aging process of cognac keeps it priced higher than other brands of the family, thereby making this segment the leading one in the global spirits industry despite facing certain demand challenges due to trade issues.

The Fruit Brandy segment is set to have the highest CAGR of 7.40% between 2026-2035, on account of increasing consumer preference for artisanal spirits derived from fruits that are not grapes. Demand for local fruit brandies continues to fuel this segment's above average growth.

By Grade/Age, VS Dominated the Market While XO/Hors d'âge Is the Fastest-Growing Segment

VS was the leading segment in the Cognac & Brandy Market, accounting for 62.60% revenue share in 2025 due to the easy availability and consumer familiarity with VS grade cognacs and brandies as the starting point for consuming these beverages in most parts of the world. VS grade beverages remain the most cost-effective for existing and new consumers, which keeps the VS grade at its leadership position in the larger cognac and brandy market.

XO/Hors d’âge will be the fastest-growing segment, registering a CAGR of 8.60% over the forecast period of 2026-2035 owing to the trend towards premiumization where consumers tend to switch from blended spirits to aged and premium spirits. The growing demand from collectors and as luxury gifts continues to fuel disproportionate growth of extra-old and extremely aged grades against the overall growth of the market.

By Price Tier, Standard Dominated the Market While Super-Premium Is the Fastest-Growing Segment

The Standard segment led the Cognac & Brandy Market with a revenue share of 52.60% in 2025, reflecting continued mainstream consumer demand for accessible, everyday cognac and brandy products across established consumption markets. Standard-tier products remain the volume foundation of the category, particularly in price-sensitive markets and traditional at-home consumption occasions, sustaining this tier's dominant position despite accelerating premiumization trends elsewhere in the market.

The Super-Premium segment is projected to record the highest CAGR of 9.20% in 2026-2035 owing to increasing disposable income levels and increasing consumer propensity to pay for superior quality and luxury status. The combined share of Premium and Super-Premium categories formed more than 47% of the total revenue of the global market in 2025 and is anticipated to exceed 55% by mid-2030s.

By Distribution Channel, Off-Trade/Retail Dominated the Market While Online/E-commerce Is the Fastest-Growing Segment

Off-Trade/Retail emerged as the largest segment of the Cognac & Brandy Market in 2025 with a revenue share of 58.60%, backed by well-established networks of liquor stores, supermarkets, and duty-free retail outlets which continue to form the main route of purchase for everyday and occasions cognac and brandy consumption. Off-Trade Retailing still offers consumers good brand diversity and favorable prices, ensuring its dominance in the overall market.

Online/E-commerce is set to witness the fastest CAGR of 10.40% throughout the forecast period 2026-2035 due to the increasing adoption of e-commerce routes of distribution and direct-to-consumer brand engagement programs. Increasing confidence among the young demographic in buying premium beverages through online channels, along with an increasing trend of limited/allocated release, will drive the channel growth further.

Regional Insights

North America Cognac & Brandy Market Insights

North America held the largest regional share of the Cognac & Brandy Market in 2025 at 34.19% of global revenue, supported by strong cultural relevance, deep-rooted brand loyalty within hip-hop and sports culture, and a mature spirits retail infrastructure. Rising adoption of cocktail culture and surging socialization at restaurants and bars continue to reinforce the region's leadership position despite recent demand softness tied to consumer moderation trends and premium tequila competition.

In 2025, the US held about 88.60% share of the cognac market in North America due to the fact that it is one of the biggest and culturally influential consuming countries of cognac worldwide. Canada is also making its contribution into the expansion of cognac market in the region due to consistent demand for premium spirits and interest in brandy among consumers.

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Europe Cognac & Brandy Market Insights

In 2025, Europe contributed significantly to the Cognac & Brandy Market share as France and Spain have been considered the traditional places for producing cognacs and brandies due to their particular aging procedures and appellation control, which form the core of this category's history. Sustainability and eco-certification initiatives that take place in the largest heritage firms contribute to consistent demand in the region.

France was the leading country in the European market in 2025 with 42.60% of the regional share as this country is the home of cognac production and is geographically appellation controlled. Apart from France, Spain, the United Kingdom, and Germany make an important contribution to the regional growth as well due to well-developed spirits' retail and the consumption of premium cognacs and brandies.

Asia Pacific Cognac & Brandy Market Insights

Asia Pacific emerged as the fastest-growing regional market for the Cognac & Brandy Market, registering strong growth driven by sustained demand from the region's growing affluent consumer base and rapid expansion of e-commerce distribution channels. China represents the gravitational center of regional demand, accounting for a disproportionate share of XO and prestige cognac imports globally despite recent tariff-related trade friction.

China accounted for approximately 44.60% of the Asia Pacific market in 2025, supported by its position as the leading destination for premium and prestige cognac imports despite navigating anti-dumping tariff measures on EU brandy. Japan, South Korea, and India are also contributing meaningfully to regional growth, with Japan sustaining strong demand for premium aged expressions across its established luxury spirits retail market.

Middle East & Africa and Latin America Cognac & Brandy Market Insights

The Middle East & Africa region is showing signs of steady growth due to the growth of the luxury gifting culture and the increase in duty-free retailing in the Gulf countries. The same case applies for Latin America with disposable incomes increasing together with interest in premium imported spirits in regional urban centers.

In 2025, the UAE held the largest regional share with 24.60% in the Middle East & Africa market due to strong infrastructure in duty-free retailing and growth in the luxury spirits gifting culture. In 2025, Brazil accounted for 26.40% in the Latin American market due to growth in premium spirits consumption. México also contributed to growth in the region with the increased interest in imported cognacs and brandies.

Growth Drivers: Premiumization and Luxury Gifting Demand Driving Market Growth

The Cognac & Brandy market has been largely motivated by the rising global demand for premium and aged spirits, increasing popularity among young adults and women, and the rise in luxury gifting opportunities in key consumption markets. The consumer perception of premium quality and sophisticated cognacs and brandies has resulted in sustained demand for aged and prestige brands despite the headwinds in the category due to evolving consumption trends.

Increasing popularity of cocktails and collaboration with mixologists has helped in positioning heritage cognacs and brandies as versatile components of the mixology menu. Sustainable packaging initiatives such as cork certification and recycling initiatives have helped in creating further differentiation among brands. Increasing availability of premium and limited editions via ecommerce platforms has widened consumer access.

Restraints: Trade Tariffs and Shifting Consumption Patterns Limiting Market Expansion

With regard to the good underlying premiumization trends, there are quite a few restraints to growth for this market linked to the rise in trade tensions faced by its two biggest markets, given China's anti-dumping duties on EU brandies, and potential tariffs on French spirits imposed by the U.S.

The major players in the market have been reporting a fall in sales in both markets, with Chinese imports of brandies dropping significantly in terms of volume and value in light of current trade tensions.

Consumers' changing tastes towards premium tequilas and other spirits categories continue to negatively impact the category's overall volume growth, while a growing preference for young, cheaper VS and VSOP cognacs in favor of high-end XO and collectible variants in China further indicate the negative impact of uncertainty in the economy.

Opportunities: Emerging Market Expansion and Category Innovation Creating New Growth Avenues

The area of expansion for the high-end consumer segment in the Asia Pacific region holds a lot of promise and has continued to grow, offering premium and super-premium segments owing to higher income levels and gift-giving practices, despite any potential trade conflicts that may arise at present. It is believed that those manufacturers who are capable of meeting minimum price criteria without jeopardizing their luxury image will make great strides towards capturing a substantial market share.

Innovation in products via cocktail offerings and mixology collaborations is an area which holds great promise and potential for growth as companies strive to make their cognacs and brandies appealing to young customers with lower alcohol consumption needs. Another promising area is the growth of e-commerce and direct-to-consumer distribution channels.

Recent Developments:

• 2025: China imposed tariffs of up to 35% on EU brandy following its anti-dumping investigation, with major cognac producers securing exemptions contingent on minimum pricing commitments.

• 2026: Hennessy's parent company Moët Hennessy pursued brand evolution strategies, including cocktail-focused initiatives, amid three consecutive years of revenue decline in its cognac category.

• 2026: Chinese customs data showed brandy imports fell 27.5% in volume and 12.1% in value year-on-year, with Rémy Martin, Martell, and Hennessy accounting for over 90% of the Chinese market.

• 2025: Rémy Cointreau implemented cost-cutting measures and organizational restructuring under new CEO Franck Marilly, targeting a return to growth in its core U.S. and China markets.

Cognac & Brandy Comapnies are:

• Rémy Cointreau SA

• LVMH Moët Hennessy Louis Vuitton SE (Hennessy)

• Pernod Ricard SA (Martell)

• Bacardi Limited

• Diageo plc

• Campari Group (Courvoisier)

• Edrington Group

• E. & J. Gallo Winery

• Beam Suntory Inc.

• Constellation Brands, Inc.

• Emperador Distillers Inc.

• Thomas Hine & Co. (EDV SAS)

• Meukow Cognac

• Yantai Changyu Pioneer Wine Company Limited

• F. Korbel & Bros

• Radico Khaitan Ltd.

• Tilaknagar Industries Limited

• ABK6 Cognac

• Frapin

• Delamain

Cognac & Brandy Market Report Scope: