Global Brandy Market Assessment, By Product  [Armagnac, Applejack, Pisco, Cognac, Others], By Type [VS, VSOP, XO, XXO, Others], By Price [Value, Premium, Super Premium], By Flavor [Fruit, Honey, Others], By Source [Organic, Conventional], By ABV [Below 40%, 40% and Above] By Packaging [Bottles, Cans, Pouches, Others], By Distribution Channel [Online, Offline], Region, Opportunities and Forecast, 2017-2031

Global brandy market is projected to witness a CAGR of 5.5% during the forecast period 2024-2031, growing from USD 14.37 billion in 2023 to USD 22.01 billion in 2031.

2031 “Brandy Market Size” | Share by Revenue and Facts

Global brandy market is projected to witness a&nbsp;CAGR of 5.5%&nbsp;during the forecast period 2024-2031, growing from&nbsp;USD 14.37 billion&nbsp;in 2023 to&nbsp;USD 22.01 billion&nbsp;in 2031. The market has experienced steady growth in recent years, driven by factors such as the rising popularity of craft cocktails and mixology has expanded the appeal of brandy beyond traditional consumption methods. Increased consumer interest in premium spirits, especially in emerging markets such as China and India, has fueled sales. Also, innovative marketing strategies and product diversification, such as flavored variations and limited editions, have attracted new consumers and retained the existing ones. The expansion of brandy tourism experiences is further boosting the market growth; brands focus on sustainable packaging, reducing the environmental effects and driving the market growth.
For instance, in November 2023, Bacardi Limited announced that the company reduced the use of single-use plastic and aimed to remove 100% single-use plastic from the gifting range. The company has successfully removed almost 275 tons of single-use plastic consumed annually.
<h2 style="text-align: justify;">Growing Demand for Premium Alcoholic Beverages</h2>
Consumers are increasingly seeking high-quality, luxury experiences, and this strength is evident in the rising popularity of premium and super-premium segments in these categories. The growing demand for premium alcoholic beverages is significantly influencing the brandy market. The shifting consumer preferences increase the demand for products offering superior quality, craftsmanship, and unique heritage. As consumers become more discerning and knowledgeable about what they drink, they invest in higher-priced bottles that promise a distant and sophisticated experience. Furthermore, the expanding middle class in emerging markets, particularly in Asia and Latin America, contributes to the trend. With higher disposable incomes, these consumers express their indulgence in luxury products as a status symbol and a marker of personal success. The allure of Western luxury and lifestyle, often symbolized by premium brandy, further boosts the demand. In established markets such as North America and Europe, the cocktail culture and mixology boom play an important role. Premium brandy is increasingly used in high-end cocktails, attracting a younger affluent consumer. Brands are leveraging the trend by creating innovative marketing campaigns and exclusive product offerings, thereby securing their place in the premium alcoholic beverages segment.
For instance, in March 2022, Bacardi India, introduced its premium brandy with the launch of Good Man Brandy, prepared by combining French and Indian grape brandies, aged for two years in oak casks. Its launches are strengthened to aim for its premium brandy segment by offering modern-day consumers a supreme experience with its latest innovations.
<h2 style="text-align: justify;">Growth in Gifting Culture and Occasions to Increase the Market Size</h2>
The increase in gifting culture and occasions have become significant factors driving the growth of the brandy market. Brandy and cognac, with their association with luxury and sophistication, have emerged as popular choices for gifting on various occasions. Spirits are often perceived as an elegant gift suitable for celebrating specific special milestones, parties, wedding anniversaries, and birthdays. The rich flavors, premium packaging, and prestigious brand image make them an attractive option for those who are looking to make a lasting impression.
In addition, brandy is frequently chosen as corporate gifts, especially during the festive season, or as tokens of appreciation. Their perceived value and status make them a preferred choice for business partners, clients, and employees. Moreover, the tradition of gifting brandy extends beyond personal and professional circles to cultural and social contexts. In different cultures, presenting a bottle of fine brandy or cognac is considered a gesture of respect, hospitality, and goodwill. Also, the rise of online gifting platforms and specialty retailers has made it easier for consumers to explore and purchase premium brandy for gifting purposes. Brands often capitalize on the trend by offering limited edition gift sets, personalized engraving options, and exclusive packaging, catering to the demand for memorable and luxurious gifts in today's gifting culture.
<h2 style="text-align: justify;">Development of Unique Flavors and Blends</h2>
Distillers are increasingly experimenting with innovative techniques and ingredients to create distinct flavor profiles catering to evolving consumer tastes and preferences. Developing unique flavors and blends is reshaping the brandy market by offering consumers a wide range of options beyond traditional offerings. In response to growing demand, brands are introducing flavored brandies and cognacs infused with various natural ingredients such as fruits, spices, and botanicals. These flavored spirits offer a modern twist on traditional recipes, appealing to younger demographics and adventurous drinkers seeking novel drinking experiences.
Moreover, blending techniques are being refined to achieve harmonious and complex flavor combinations. Master blenders meticulously select and blend with different spirits to create a balanced and new experience showcasing brandy's depth and character. The trend toward unique flavors and blends is driven by a desire for authenticity and craftsmanship. Consumers are drawn towards brands that prioritize quality ingredients, traditional production methods, and attention to detail in crafting their spirits. As a result, distillers are investing in small-batch productions and artisanal approaches to differentiate their offerings in a competitive market landscape. Overall, the development of unique flavors and blends reflects a broader shift towards innovation and creativity in the brandy industry, further driving the market growth.
For instance, in June 2022, Tilaknagar Industries launched flavored brandy under its brand, Mansion House, which is available in three different flavors, such as orange, cherry, and peach, in India. The launch aims to increase sales by 12-15% annually in three to five years.
<h2 style="text-align: justify;">Conventional Segments Hold Major Share</h2>
Conventional brandy segments hold the major share of the brandy market due to their enduring popularity and high-quality production. Brands like Martell and Courvoisier have secured their leadership by emphasizing their long histories and expert craftsmanship. For instance, Martell continues to use fine-grained oak barrels for aging, enhancing the complex flavors of brandy. Major conventional brandy brands have wide distribution networks and strong marketing strategies. This ensures that their products are easily available and well-promoted, keeping them in the spotlight and readily available to consumers. In recent years, the consumption of traditional brandy has increased, especially in the premium segment. For instance, Courvoisier&rsquo;s &lsquo;Avant-Garde&rsquo; series is one of the prime examples of blending classic methods with modern drinks to attract both long-time and new brandy consumers. Their focus on heritage and authenticity resonates with consumers seeking genuine, high-quality products. The rise of classic cocktails featuring brandy, such as Sidecar and Brandy Alexander has also contributed to the growing demand for traditional brandy.
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<h2 style="text-align: justify;">North America Dominates Brandy Market</h2>
North America dominates the global brandy market. The region's population and affluent consumer base create a significant market demand for premium spirits such as cognac and brandy. In addition, North America has a strong culture of fine dining and luxury consumption, where brandy is often enjoyed as an after-dinner drink in cocktails, further driving sales.
Moreover, the popularity of brandy in North America is strengthened by effective marketing strategies employed by producers and distributors, who capitalize on drinks with perceived sophistication and exclusivity. Marketing often targets affluent consumers through various channels, including advertising campaign sponsorship of high-profile events and partnerships with luxury brands.
For instance, in 2023, 12.5 million 9-9-liter brandy and cognac were sold in the United States, generating revenue of USD 2.5 billion for distillers.
Furthermore, North American consumers have increasingly embraced the trend of premiumization, opting for higher-quality and more expensive spirits, which has benefited the brandy market. The preference for premium products has led to an expansion of the market, with a growing number of consumers willing to invest in premium brandy and cognize brands.
Future Market Scenario (2024 &ndash; 2031F)
1.&nbsp;Advancements in the aging process are expected to enhance product quality. Introducing more limited editions and exclusive releases will create a sense of exclusivity in customers, further boosting the market growth.
2.&nbsp;Enhanced consumer experiences through virtual and augmented reality tastings and higher investment in digital marketing and social media campaigns.
3.&nbsp;Development of unique, region-specific flavors are expected to cater more to local tastes.
Report Scope
&ldquo;Brandy Market Assessment, Opportunities and Forecast, 2017-2031F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global brandy market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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2023
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Historical Period
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2017-2022
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Forecast Period
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2024-2031
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Projected Growth Rate
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CAGR of 5.5% between 2024 and 2031
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Revenue Forecast in 2031
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USD 22.01 billion
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Segments Covered
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Product, Type, Price, Flavor, Source, ABV, Packaging, Distribution Channel
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Regions Covered
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North America, Europe, South America, Asia-Pacific, Middle East and Africa
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Key Companies Profile
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Naud Spirits &amp; Distillery, HENNESSY &amp; Co., E. &amp; J. Gallo Winery, Emperador Distillers, Inc., Davide Campari-Milano N.V. (Courvoisier S.A.S), Maison Ferrand, R&eacute;my Martin, Meukow Cognac, Diageo plc, Pernod Ricard S.A.
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;global brandy market&nbsp;has been segmented into the following categories:
<ul style="text-align: justify;">
<li>By Product
<ul>
<li>Armagnac</li>
<li>Applejack</li>
<li>Pisco</li>
<li>Cognac</li>
<li>Others</li>
</ul>
</li>
<li>By Type
<ul>
<li>VS (Very Special)</li>
<li>VSOP (Very Superior Old Pale)</li>
<li>XO (Extra Old)</li>
<li>XXO (Extra Extra Old)</li>
<li>Others</li>
</ul>
</li>
<li>By Price
<ul>
<li>Value</li>
<li>Premium</li>
<li>Super Premium</li>
</ul>
</li>
<li>By Flavor
<ul>
<li>Fruit
<ul>
<li>Apple</li>
<li>Peach</li>
<li>Pineapple</li>
<li>Others</li>
</ul>
</li>
<li>Honey</li>
<li>Others</li>
</ul>
</li>
<li>By Source
<ul>
<li>Organic</li>
<li>Conventional</li>
</ul>
</li>
<li>By ABV
<ul>
<li>Below 40%</li>
<li>40% and Above</li>
</ul>
</li>
<li>By Packaging
<ul>
<li>Bottles
<ul>
<li>Glass</li>
<li>Plastic</li>
</ul>
</li>
<li>Cans</li>
<li>Pouches</li>
<li>Others</li>
</ul>
</li>
<li>By Distribution Channel
<ul>
<li>Online
<ul>
<li>E-commerce</li>
<li>Company Owned Websites</li>
</ul>
</li>
<li>Offline
<ul>
<li>Specialty Stores</li>
<li>Supermarkets and Hypermarkets</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>South America</li>
<li>Middle East and Africa</li>
</ul>
</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Continuous innovation by the key players characterizes the competitive landscape of the global brandy market. The market is dominated by major players leading through extensive portfolios, strong brand recognition, product launches, acquisitions, and brand evolution.
For instance, in March 2022, E. &amp; J. Gallo Winery launched Spirit of Gallo, a new brand to showcase its award-winning spirits portfolio, including gin, whiskey, brandy, tequila, and vodka.
The companies have a stronghold in traditional markets, such as the United States and Canada, where drinks have a long history and high consumer demand. They also focus on unique, high-quality brandy drinks for health-conscious consumers. The market is driven by increasing demand for innovative flavors and healthy beverage options. Limited editions have become a popular trend, generating excitement and urgency among consumers. Thus, the market will expand with traditional and new players continually adapting to evolving consumer tastes.
For instance, in June 2022, Emperador launched a limited-edition brandy, Presidente Brandy to celebrate the history of the Philippines.
Key Players Operating in Global Brandy Market are:
<ul style="text-align: justify;">
<li>Naud Spirits &amp; Distillery</li>
<li>HENNESSY &amp; Co.</li>
<li>&amp; J. Gallo Winery</li>
<li>Emperador Distillers, Inc.</li>
<li>Davide Campari-Milano N.V. (Courvoisier S.A.S)</li>
<li>Maison Ferrand</li>
<li>R&eacute;my Martin</li>
<li>Meukow Cognac</li>
<li>Diageo plc</li>
<li>Pernod Ricard S.A.</li>
</ul>
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Global Brandy Market Assessment, Opportunities and Forecast, 2017-2031

Global brandy market is expected to experience growth due to the growing demand for premium alcoholic beverages. This demand is shifting consumer preferences towards products which offer superior quality, craftsmanship, and unique heritage.

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