Cognac market predicted to reach US$10.2bn within 10 years
The global Cognac market is expected to almost double in value between now and 2032, according to a new report from Fact.MR.
According to the research, the current global market for the prestigious French brandy was valued at US$5.5 billion in 2022, and by 2032 it will be worth around US$10.2bn.
The driving force behind this projected growth (predicted at a rate of 6.4%) is expected to be growing interest in the spirit from millennial consumers, those born between approximately 1981 and 1996 – the same demographic that has driven the boom in sales of Provence rosé.
Indeed, the Bureau National Interprofessionnel du Cognac (BNIC) has made efforts to undo the ‘stuffy’ reputation that Cognac sometimes has, by showing its potential in mixology.
It should be noted that Cognac is also seen as trendy due to its association with popular rap artists, like Curtis ’50 Cent’ Jackson and Sean ‘Diddy’ Combs. Cognac houses are also investing heavily in their marketing, with Hennessy recently collaborating with Italian auteur Paolo Sorrentino on an advert.
As for where this growth will come from, the report pointed out that Asia Pacific is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.0%.
The US remains the leading international market for Cognac, and it is expected to get bigger between now and 2032, with a predicted CAGR of 4.9%.
In terms of what grade of Cognac is being bought, the report stated that VS/Very Special, meaning that the youngest spirit in the blend was aged for at least two years, constitutes more than half of the total volume. However, the next grade (and usually price point) up, VSOP/Very Special Old Pale, where the youngest spirit in the blend was aged for a minimum of four years, is also predicted to grow at the fastest rate, 6.7%, of any Cognac grade over the next 10 years.