Brandy Market Embracing Premiumization and Craftsmanship

Report Overview:

The global brandy market is projected to grow steadily over the next decade, expanding from USD 27.2 billion in 2024 to approximately USD 48.3 billion by 2034, at a CAGR of 5.9%. Brandy, a spirit made mainly from fermented fruits or grapes, has gained new popularity among today’s consumers. Once seen as a classic after-dinner drink, it’s now finding a place in modern bars and homes thanks to premium aging labels and creative flavor options.

North America holds the largest market share, contributing around 44.3% of global sales in 2024, valued at USD 12 billion. Among the product categories, regular brandy holds the lead with a 72.3% share, while Cognac dominates the type segment at 38.4%. Most brandy sales are still made through supermarkets and hypermarkets, which account for nearly 43% of global distribution. The market’s growth reflects a strong mix of tradition, innovation, and changing consumer tastes.

Brandy has come a long way from being a traditional liquor to becoming a popular spirit among modern drinkers. Flavored varieties, premium blends like XO and VSOP, and craft offerings are all contributing to its rise. Younger consumers are particularly showing interest, influenced by cocktail culture and a growing curiosity about aged spirits. This shift in consumption habits is opening up new growth paths for the industry.

Different parts of the world are seeing varying levels of demand. While North America remains a major consumer, countries in Asia-Pacific are catching up quickly, driven by urbanization and rising disposable income. E-commerce is also transforming the way consumers buy alcohol, making it easier to access brandy online. With strong support from premium positioning, branding, and digital retailing, the brandy market is evolving fast and producers who embrace these trends will be best positioned to succeed in the coming years.

Key Takeaways

• The market will grow from USD 27.2 billion in 2024 to USD 48.3 billion by 2034, driven by rising global demand.
• Regular brandy leads the product category with a 72.3% market share.
• Cognac stands out in the type segment, contributing 38.4% to total revenue.
• Supermarkets and hypermarkets dominate retail distribution with a 42.9% share.
• North America leads globally, accounting for 44.3% of total sales, or about USD 12 billion in 2024.

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Key Market Segments:

By Product

• Flavored
• Regular

By Product Type

• Grape Brandy
• Cognac
• Armagnac
• Fruit Brandy
• Others

By Distribution Channel

• Supermarkets and Hypermarkets
• Exclusive Stores
• On-Trade
• Others

DORT Analysis

Drivers

• Growing consumer preference for premium and aged spirits is boosting sales of high-end brandies.
• Younger buyers are exploring flavored and fruit-infused brandies for their smooth and approachable taste.
• Brandy’s use in cocktails and modern mixology is expanding its relevance in social settings.
• Greater awareness around quality and craft production is helping niche brands gain attention.

Opportunities

• Online sales are opening doors in areas with limited liquor store access, especially in emerging markets.
• Storytelling and artisan branding can help craft producers carve out loyal customer bases.
• The rise in cocktail culture globally offers new avenues for product promotion and experimentation.
• Expanding into growing regions like Asia and Latin America can unlock major revenue gains.

Restraints

• High taxes and import duties can make brandy unaffordable in price-sensitive markets.
• Strict regulations around advertising and distribution often limit outreach and growth potential.
• New brands face hurdles in terms of compliance, licensing, and competition from established names.
• In some regions, cultural or social views on alcohol still restrict the brandy market’s reach.

Trends

• Consumers are increasingly drawn to flavored brandies like apple, honey, and cherry.
• Small-batch and artisanal brandy producers are attracting attention for their authenticity.
• Signature brandy-based cocktails are becoming trendy in restaurants and bars.
• Digital platforms and e-commerce are reshaping how people discover and buy brandy.
• Premium labels like XO and VSOP are used to highlight aging and justify higher prices.

Market Key Players:

• Courvoisier Cognac
• Diageo Plc
• E. & J. Gallo Winery
• Emperador
• F. Korbel & Bros.
• Martell
• Speciality Brands Ltd.
• Rémy Cointreau
• Thomas HINE & Co.(EDV SAS)
• Yantai Changyu Pioneer Wine Company Limited
• Hennessy
• Rémy Martin
• Courvoisier
• Torres
• E&J Gallo
• Christian Brothers
• St-Rémy
• Germain-Robin
• Vecchia Romagna

Conclusion:

The global brandy market is steadily moving forward, thanks to changing consumer habits, a growing focus on premium products, and the convenience of digital sales. While traditional segments like regular brandy and Cognac still dominate, there’s a rising wave of innovation flavored blends, small-batch distilleries, and cocktail-based branding are making brandy more versatile and appealing to modern drinkers. North America remains the top consumer, but new demand is rising fast in developing regions.

However, challenges remain. Regulations, taxes, and strict alcohol policies can slow down expansion, especially in more conservative or tightly controlled markets. Even so, the opportunities outweigh the risks. Brands that adapt to new retail methods, invest in product quality, and appeal to younger, experience-driven audiences will likely stand out in the coming years. The key will be striking the right balance between honoring brandy’s classic roots and embracing the fresh trends shaping its future.