20th August, 2020 by Owen Bellwood
The global Cognac market is expected to be worth US$5.09 billion by 2027 as demand grows in Asia Pacific and across the on-trade, according to analysis firm Grand View Research.
According to the Cognac Market Size, Share & Trends Analysis Report, global Cognac sales will rise by a compound annual growth rate (CAGR) of 3.5% until 2027.
Increasing sales of the French spirit have been attributed to demand from consumers in countries such as China, Japan, South Korea and Singapore. Sales of premium Cognac in the region will contribute to 4% CAGR – the fastest regional growth rate over the next seven years.
Rising on-trade sales will also boost global demand for Cognac in the coming years. Sales of Cognac in the sector are predicted to rise at 6.4% CAGR as increased spending on “attractive offers” while ordering alcoholic drinks in bars and restaurants remains “a favourable factor for the segment growth”.
Currently, the Cognac market is led by off-trade distribution, accounting for more than 55% of the global volume sales. Regionally, North America dominates the market and accounted for more than 35% of the of the category’s global revenue in 2019.
Sales of VS Cognac accounted for more than 50% of global volume sales in 2019. Grand View Research said “the segment growth is propelled by the constant demand for new products among customers”.
Earlier this year, data from the Fédération des Exportateurs de Vins & Spiritueux de France showed Cognac exports grew by 6.6% to 17.8m cases in 2019, and increased by 11.4% in value to €3.4bn (US$3.6bn).