Global Cognac Market Size, Share, And Business Benefits By Grade (V.S., V.S.O.P., Others), By Distribution Channel (Off-Trade, On-Trade), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

Global Cognac Market is expected to be worth around USD 6.8 billion by 2034, up from USD 4.3 billion in 2024, and grow at a CAGR of 3.1% from 2025 to 2034. Strong consumer demand in North America, USD 1.9 billion, continues driving premium Cognac sales and growth.

Cognac is a type of brandy that comes from the Cognac region in southwestern France. It is made from specific grape varieties, primarily Ugni Blanc, and undergoes double distillation in copper pot stills before being aged in French oak barrels for at least two years. The production process is strictly regulated, ensuring a consistent quality and unique flavor profile marked by fruit, spice, and oak notes. Cognac is often enjoyed neat, but it’s also increasingly used in cocktails.

The Cognac market refers to the global trade, consumption, and production of this luxury spirit. It encompasses various product grades, from VS (Very Special) to XO (Extra Old), targeting both mass-market and premium consumers. This market includes domestic consumption in France and significant exports, particularly to North America and Asia. Growing global appreciation for premium spirits has led to an expanded consumer base and wider cultural acceptance of Cognac.

Growth in the Cognac market is driven by rising disposable incomes, especially in emerging economies where luxury products symbolize status. The younger generation’s growing interest in craft spirits and premium experiences also contributes to this trend, fueling steady global demand for quality offerings. According to an industry report, a British brandy maker secures £2 million for international growth ambitions

Demand is particularly strong in urban centers, where nightlife culture, upscale dining, and mixology play a crucial role. The appeal of cognac as both a traditional and modern drink gives it a unique position among spirits. Seasonal demand during holidays and special occasions also supports consistent sales volumes throughout the year. According to an industry report, Europe allocates €3 million to Armenia to rename its locally called “cognac”.

Key Takeaways

• Global Cognac Market is expected to be worth around USD 6.8 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.

By Grade Analysis

In the Cognac market, V.S.O.P. grade holds 52.4% market share.

In 2024, V.S.O.P. held a dominant market position in the By Grade segment of the Cognac Market, with a 52.4% share. This significant market presence can be attributed to the balanced profile V.S.O.P. offers—mature enough to showcase depth and complexity, yet accessible in terms of pricing compared to higher-grade offerings.

Consumers appreciate its smooth character and versatility, making it suitable for both sipping and mixing. The appeal of V.S.O.P. lies in its ability to cater to a wide demographic, including both traditional connoisseurs and a younger, experience-driven audience.

Its popularity is also driven by a growing appreciation for quality spirits in both mature and emerging markets. V.S.O.P. has become a favored choice in upscale bars, lounges, and restaurants where premiumization trends are strong.

The consistent availability and recognition of the grade across various global regions further support its leading market share. Additionally, the balance of price and quality in V.S.O.P. offerings makes it an attractive option for gifting and special occasions.

By Distribution Channel Analysis

Off-trade channels dominate the Cognac market, accounting for 65.7% of total distribution.

In 2024, Off-Trade held a dominant market position in the By Distribution Channel segment of the Cognac Market, with a 65.7% share. This strong lead reflects changing consumer purchasing behaviors, where convenience, pricing, and accessibility play key roles. Off-trade channels, such as liquor stores, supermarkets, and online platforms, provide consumers with a broader range of Cognac brands and price points, making it easier to explore and purchase products for personal consumption or gifting.

The dominance of Off-Trade also highlights the shift towards at-home consumption, especially in urban and suburban settings. Consumers increasingly prefer to enjoy premium spirits like Cognac in the comfort of their homes, driving sales through these channels. Online retail, in particular, has contributed to this trend by offering detailed product information, customer reviews, and home delivery services, all of which encourage informed purchases.

Furthermore, promotional pricing and seasonal offers available in the Off-Trade segment appeal to both occasional and regular buyers. Retailers also benefit from higher visibility and customer reach, contributing to volume growth.

Key Market Segments

By Grade

• V.S.
• V.S.O.P.
• Others

By Distribution Channel

• Off-Trade
• On-Trade

Driving Factors

Rising Demand for Premium Lifestyle and Tastes

One of the main driving factors of the Cognac market is the growing demand for premium lifestyle experiences. More people, especially in urban areas and younger age groups, are looking for high-quality drinks that offer not just taste but status and enjoyment. Cognac fits well into this trend because it is seen as a classy and refined spirit.

As incomes rise and people travel more, they become open to trying luxury items, including fine spirits like Cognac. This has led to more interest in unique, aged, and smooth options such as V.S.O.P. Cognac. Whether enjoyed at home, at social events, or as a gift, Cognac is increasingly becoming part of a modern premium lifestyle choice.

Restraining Factors

High Price Limits Access for Many Consumers

A major restraining factor for the Cognac market is its high price, which makes it less affordable for a large number of consumers. Cognac is a luxury product that involves careful production, aging, and quality control, all of which add to its cost. While this attracts premium buyers, it also keeps budget-conscious consumers from purchasing it regularly.

In many regions, people may choose lower-cost spirits or local alternatives that are easier on the wallet. This price barrier can slow down growth, especially in markets where spending on luxury goods is limited. As a result, despite growing global interest, the high price of Cognac remains a key challenge for reaching wider customer groups.

Growth Opportunity

Expanding Cocktail Culture Boosts Cognac Popularity

A major growth opportunity for the Cognac market lies in the expanding cocktail culture around the world. More bars, restaurants, and even home users are experimenting with creative cocktails, and Cognac is becoming a favored ingredient. Its smooth flavor and rich aroma blend well with various mixers, making it a great base for both classic and modern drinks.

Younger consumers, in particular, are showing more interest in trying unique cocktails that include premium spirits like Cognac. This trend opens the door for new marketing strategies, drink recipes, and collaborations with mixologists. By promoting Cognac as a stylish and versatile cocktail option, producers can attract new customers and increase sales in both domestic and international markets.

Latest Trends

Sustainable Packaging and Eco-Friendly Practices Rising Trend

A fresh and important trend in the Cognac market is the move toward sustainable packaging and eco-friendly production. More producers are now focusing on using recycled glass bottles, biodegradable corks, and reducing their carbon footprint during aging and transportation.

Consumers today, especially younger buyers, care about the environment and want to support brands that follow green practices. Cognac makers are responding by introducing elegant, minimal packaging designs that look stylish but also leave a lighter impact on the planet. This shift not only helps attract eco-conscious buyers but also promotes long-term brand loyalty.

Regional Analysis

North America led the Cognac market in 2024, holding a 45.7% share.

In 2024, North America emerged as the dominating region in the global Cognac market, holding a significant market share of 45.7%, valued at USD 1.9 billion. This strong performance is driven by increasing consumer interest in premium spirits, evolving nightlife culture, and rising disposable incomes across key markets like the United States and Canada.

Europe continues to be a stable market, supported by its long-standing cultural connection to Cognac and steady demand across Western European countries. Asia Pacific is showing promising potential, with growing awareness and acceptance of Cognac in countries such as China and Japan, although its market share remains behind North America and Europe.

The Middle East & Africa region is gradually developing as luxury preferences grow among affluent consumers, especially in urban centers. Latin America remains a smaller yet emerging market, with improving economic conditions and a slowly increasing demand for imported premium spirits like Cognac.

Overall, while North America leads in terms of both value and share, other regions are contributing steadily to the market’s global expansion, each influenced by unique cultural, economic, and consumption trends within their respective geographies.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

In 2024, the global Cognac market saw notable activity and presence from key players such as Brown-Forman Corporation, Camus Cognac, and Constellation Brands, Inc. Each of these companies brought unique strengths and market approaches that shaped the competitive landscape.

Brown-Forman Corporation, known for its strong brand portfolio and international reach, continued to benefit from its consistent focus on premium positioning and customer engagement. The company’s distribution strength, particularly in North America and select global markets, allowed it to maintain visibility and drive consumer loyalty in a competitive category.

Camus Cognac, as one of the oldest independent Cognac houses, focused on heritage and craftsmanship. In 2024, it remained firmly committed to traditional distillation techniques while also exploring limited editions and exclusive collections. Camus’s emphasis on family legacy and artisanal values positioned it as a go-to brand for connoisseurs seeking authenticity and depth of flavor. Its niche appeal helped it stand out in a market that is both tradition-rooted and innovation-driven.

Constellation Brands, Inc., leveraging its broad beverage portfolio, brought strategic diversification and brand marketing expertise to the Cognac space. Its capability to integrate Cognac into broader lifestyle and consumption trends enabled the company to tap into new consumer segments, particularly younger adults exploring premium spirits.

Top Key Players in the Market

• 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

Recent Developments

• In June 2025, Camus unveiled its “Sous Les Mers” Cognac at Sotheby’s Hong Kong. This unique bottling was aged underwater in the Atlantic and priced around HK$ $1.9 million—marking a bold, experiential twist on traditional maturation.
• In April 2024, after extensive renovation, Rémy Martin unveiled its “Historic Maison” visitor center in Cognac. The renovated site offers immersive tours, including 3D digital mapping and pairing experiences, enhancing brand storytelling and consumer engagement.

Report Scope