Latest News- Cognac Market: Off trade is expected to lead the Distribution Channel segment during 2023-2027

The Cognac Market is being driven by Rising awareness of health benefits of cognac

The Cognac Market is expected to grow at a CAGR of 3.64% during 2022 and 2027. During this period, the market is also expected to show a growth of USD 897.31 million. The global Cognac market is experiencing growth due to its extensive use in the creation of a diverse range of cocktails. This versatile spirit is a staple in the beverage offerings of dining establishments, as it can be consumed in various forms to cater to different preferences. Cognac can be enjoyed neat, on the rocks, or diluted with water. Additionally, it can be mixed with premium mixers like soda or lemonade to create long drinks or used as a base for intricately crafted cocktails. Renowned brands such as Hennessy and Meukow continue to dominate the market, appealing to consumers seeking unique and memorable experiences. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Distribution Channel
  • Off trade
  • On trade
• Product
  • VS
  • VSOP
  • XO
• Type
  • Value
  • Premium
  • High-end Premium
  • Super Premium
  • Value
  • Premium
  • High-end Premium
  • Super Premium
• Geography
  • North America
    • US
  • APAC
    • China
    • Singapore
  • Europe
    • Germany
    • UK
  • South America
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rising awareness of health benefits of cognac
• Emerging online distribution platform for selling cognac
• Rising popularity of cognac in China

However, the market also witnesses some limitations, which are as follows:

• Growing competition from other alcoholic beverages
• Unpredictable climatic conditions negatively affecting the production of grapes
• Campaigns against alcohol consumption

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Market Scope in Cognac Market Research Report

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Research Analysis Overview

The Cognac market experiences a surge with the rise of millennials' preference for very special, high alcohol by volume (ABV) distilled spirits. The Under Larsen brand introduces Double Toasted cognac, crafted using white grapes and fruit juice base in copper pot stills. Premium alcoholic liquors, including cognac, witness increased consumption due to cocktail culture, socialization in restaurants and bars, and the trend of premiumization. Renewable energy companies like Flender, Moventas, Wind Prime, Innergex Renewable Energy, Boswel Spring Wind, and Karara Wind Farm contribute to the production of this very special spirit, using wind energy from Dobele Wind Farm and other sources.

Market Research Overview

The Cognac market witnesses a surge in demand for premium, very special distilled spirits, particularly under the Larsen brand. This growth can be attributed to the increasing preference among millennials for Double Toasted cognac, which boasts a higher alcohol by volume (ABV) than traditional cognacs. The production process involves the use of copper pot stills and a fruit juice base derived from white grapes. The global market for premium alcoholic liquors is projected to expand substantially, fueled by the trend towards artisanal and craft production methods. In particular, the number of craft cognac producers has risen significantly since 2021, with micro-distilleries accounting for approximately 80% of the total output.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/