Cognac Market

Cognac Market Forecast and Outlook 2025 to 2035

The global cognac market is valued at USD 8.2 billion in 2025. It is slated to reach USD 11.5 billion by 2035, recording an absolute increase of USD 3.3 billion over the forecast period. This translates into a total growth of 40.2%, with the market forecast to expand at a compound annual growth rate (CAGR) of 3.3% between 2025 and 2035.

The overall market size is expected to grow by nearly 1.40X during the same period, supported by increasing premium spirit consumption in emerging markets, growing appreciation for luxury French craftsmanship, rising cocktail culture adoption, and expanding availability through e-commerce and luxury retail channels.

Quick Stats for Cognac Market

• Cognac Market Value (2025): USD 8.2 billion
• Cognac Market Forecast Value (2035): USD 11.5 billion
• Cognac Market Forecast CAGR: 3.3%
• Leading Grade Type in Cognac Market: VS/VSOP
• Key Growth Regions in Cognac Market: North America, Asia-Pacific, and Europe
• Key Players in Cognac Market: LVMH, Rémy Cointreau, Pernod Ricard, Beam Suntory, Camus, Hennessy

Between 2025 and 2030, the cognac market is projected to expand from USD 8.2 billion to USD 9.6 billion, resulting in a value increase of USD 1.4 billion, which represents 42.4% of the total forecast growth for the decade. This phase of development will be shaped by increasing premiumization trends in spirits consumption, growing appreciation for aged French brandies, and expanding luxury gifting culture. Cognac producers and distributors are expanding their market capabilities to address the growing demand for sophisticated and authentic premium spirits experiences.

Cognac Market Key Takeaways

Metric	Value
Estimated Value in (2025E)	USD 8.2 billion
Forecast Value in (2035F)	USD 11.5 billion
Forecast CAGR (2025 to 2035)	3.3%

From 2030 to 2035, the market is forecast to grow from USD 9.6 billion to USD 11.5 billion, adding another USD 1.9 billion, which constitutes 57.6% of the overall ten-year expansion. This period is expected to be characterized by the expansion of emerging market consumption, development of limited edition and collectible releases, and growth of experiential luxury consumption and cognac tourism. The growing adoption of digital marketing and e-commerce platforms will drive demand for cognac products with enhanced brand storytelling and authentic heritage positioning.

Between 2020 and 2025, the cognac market experienced steady growth, driven by increasing global appreciation for French luxury spirits and growing recognition of cognac as a premium category for special occasions, gifting, and sophisticated consumption. The market developed as consumers and spirits enthusiasts recognized the craftsmanship, heritage, and complexity that distinguish cognac from other spirits categories while supporting luxury lifestyle trends and premium drinking experiences.

Why is the Cognac Market Growing?

Market expansion is being supported by the increasing global appreciation for luxury spirits driven by premiumization trends and sophisticated consumer preferences, alongside the corresponding need for authentic heritage brands that can provide exceptional quality, artisanal craftsmanship, and prestigious positioning across various consumption occasions and gifting applications. Modern spirits distributors and luxury retailers are increasingly focused on implementing cognac solutions that can enhance portfolio premiumization, attract affluent consumers, and provide differentiated luxury experiences while maintaining authenticity and heritage appeal.

The growing emphasis on experiential luxury and authentic craftsmanship is driving demand for cognac that can support sophisticated consumption experiences, enable cultural appreciation, and ensure comprehensive luxury positioning. Spirits retailers' preference for products that combine heritage authenticity with premium credentials and investment potential is creating opportunities for innovative cognac marketing implementations. The rising influence of cocktail culture and mixology innovation is also contributing to increased adoption of cognac that can provide superior versatility without compromising traditional character or luxury positioning.

Segmental Analysis

The market is segmented by grade, distribution channel, and price tier. By grade, the market is divided into VS/VSOP, XO and above, and Hors d'Age/special editions. Based on distribution channel, the market is categorized into off-trade retail, on-trade, and travel retail. By price tier, the market is segmented into premium, standard, and value categories.

By Grade, the VS/VSOP Segment Leads the Market

The VS/VSOP segment is projected to maintain its leading position in the cognac market in 2025 with a 62% market share, reaffirming its role as the preferred grade for cognac consumption and accessible luxury spirits experiences. Cognac producers and distributors increasingly utilize VS and VSOP grades for their balanced quality-to-price ratio, broad consumer appeal, and proven effectiveness in introducing consumers to cognac category while maintaining authentic French craftsmanship and heritage characteristics. VS/VSOP grade's proven accessibility and quality balance directly address market requirements for entry-level premium consumption and established cognac experiences across diverse consumer segments and occasion types.

This grade segment forms the foundation of modern cognac consumption, as it represents the grades with the greatest contribution to volume sales and established market presence across multiple distribution channels and consumer demographics. Spirits industry investments in VS/VSOP production continue to strengthen adoption among producers and retailers. With consumer preferences requiring accessible luxury experiences, VS/VSOP cognacs align with both quality objectives and price accessibility requirements, making them the central component of comprehensive cognac market strategies.

By Distribution Channel, the Off-Trade Retail Segment Dominates Market Demand

The off-trade retail distribution channel is projected to represent the largest share of cognac demand in 2025 with a 58% market share, underscoring its critical role as the primary driver for cognac sales across liquor stores, supermarkets, and specialty spirits retailers. Retailers prefer off-trade channels for cognac due to their superior inventory control capabilities, consumer education opportunities, and ability to provide comprehensive product selection while supporting brand visibility and promotional activities. Positioned as essential channels for luxury spirits distribution, off-trade retail offers both accessibility advantages and consumer convenience benefits.

The segment is supported by continuous innovation in retail merchandising and the growing availability of premium spirits sections that enable superior product presentation with enhanced consumer engagement and purchase conversion. Additionally, retailers are investing in comprehensive staff training programs to support increasingly sophisticated cognac offerings and consumer education requirements. As luxury spirits consumption patterns evolve and retail technology advances, the off-trade retail channel will continue to dominate the market while supporting advanced merchandising strategies and consumer experience optimization.

By Price Tier, the Premium Segment Leads Market Value

The premium price tier segment is projected to maintain its leading position in the cognac market in 2025 with a 51% market share, reflecting the inherent luxury positioning of cognac as a premium spirits category. Producers increasingly focus on premium positioning to maintain brand heritage, attract affluent consumers, and differentiate from other spirits categories through quality, craftsmanship, and authenticity.

What are the Drivers, Restraints, and Key Trends of the Cognac Market?

The cognac market is advancing steadily due to increasing global appreciation for luxury French spirits driven by premiumization trends and cultural sophistication, alongside growing demand for authentic heritage brands that provide exceptional craftsmanship, prestigious positioning, and sophisticated consumption experiences across various luxury lifestyle and gifting applications. However, the market faces challenges, including regulatory restrictions in some markets, competition from other premium spirits categories, and supply constraints related to aging requirements and vineyard limitations. Innovation in brand storytelling and experiential marketing continues to influence consumer engagement and market expansion patterns.

Expansion of Emerging Market Sophistication

The growing sophistication in emerging markets is driving demand for cognac that can represent luxury lifestyle aspirations, cultural appreciation, and international prestige through authentic French heritage and exceptional quality characteristics. Affluent consumers in emerging markets require premium cognac offerings that deliver superior status representation across multiple social and business contexts while maintaining authentic craftsmanship and heritage authenticity. Cognac brands are increasingly recognizing the competitive advantages of emerging market focus for growth and brand development, creating opportunities for targeted marketing and distribution strategies specifically designed for culturally diverse luxury consumption patterns.

Integration of Digital Marketing and E-Commerce

Modern cognac producers are incorporating digital marketing platforms and e-commerce capabilities to enhance brand storytelling, expand market reach, and support comprehensive consumer engagement through virtual tastings, heritage education, and direct-to-consumer sales channels. Leading companies are developing online brand experiences, implementing digital marketing campaigns, and advancing e-commerce platforms that enhance brand accessibility while maintaining luxury positioning and heritage authenticity. These technologies improve market accessibility while enabling new consumer touchpoints, including virtual experiences, digital education, and personalized luxury services.

Development of Limited Editions and Collectibles

The expansion of luxury collectibles and investment potential is driving demand for limited edition cognacs, vintage releases, and special commemorative bottlings that appeal to collectors, investors, and luxury enthusiasts seeking unique and appreciating assets. These premium offerings require specialized production capabilities and marketing approaches that create exclusivity and investment appeal, generating premium market segments with differentiated value propositions. Producers are investing in limited production capabilities and collector marketing to serve emerging luxury investment applications while supporting innovation in premium positioning and brand heritage development.

Analysis of the Cognac Market by Key Countries

Country	CAGR (2025-2035)
USA	3.9%
Mexico	3.6%
Germany	3.3%
France	3.1%
UK	3.0%
South Korea	2.8%
Japan	2.6%

The cognac market is experiencing solid growth globally, with the USA leading at a 3.9% CAGR through 2035, driven by strong luxury spirits consumption, growing appreciation for premium French brandies, and expanding cocktail culture supporting cognac adoption. Mexico follows at 3.6%, supported by rising affluent consumer segments, growing luxury lifestyle trends, and increasing appreciation for premium imported spirits. Germany shows growth at 3.3%, emphasizing quality appreciation, luxury consumption, and sophisticated spirits culture. France demonstrates 3.1% growth, supported by domestic premium consumption, tourism experiences, and heritage appreciation. The UK records 3.0%, focusing on luxury spirits market maturity, premium consumption trends, and sophisticated drinking culture. South Korea exhibits 2.8% growth, emphasizing luxury lifestyle adoption and premium spirits appreciation. Japan shows 2.6% growth, supported by sophisticated spirits culture and premium consumption traditions.

USA Leads Global Market Growth with Luxury Spirits Culture

Revenue from cognac in the USA is projected to exhibit strong growth with a CAGR of 3.9% through 2035, driven by extensive luxury spirits market development and rapidly growing appreciation for premium French brandies supporting cognac adoption among affluent consumers, spirits enthusiasts, and luxury lifestyle segments. The country's established premium spirits infrastructure and increasing sophisticated drinking culture are creating substantial demand for cognac solutions. Major cognac brands and luxury spirits distributors are establishing comprehensive marketing and distribution capabilities to serve both domestic markets and luxury consumption opportunities.

• Strong luxury consumption trends and sophisticated drinking culture are driving demand for cognac throughout premium spirits retailers, luxury bars, and high-end restaurants across urban markets, affluent neighborhoods, and entertainment districts.
• Growing cocktail culture and mixology innovation are supporting the rapid adoption of cognac among bartenders, spirits enthusiasts, and cocktail consumers seeking premium ingredients and authentic French craftsmanship for sophisticated drinking experiences.

Mexico Demonstrates Strong Market Potential with Luxury Lifestyle Expansion

Revenue from cognac in Mexico is expanding at a CAGR of 3.6%, supported by the country's rising affluent consumer segments, growing luxury lifestyle trends, and increasing appreciation for premium imported spirits and French luxury brands. The country's evolving consumer sophistication and luxury market development are driving demand for premium cognac products throughout urban centers and affluent communities. Leading cognac brands and luxury importers are establishing comprehensive distribution networks to address growing demand for luxury spirits experiences.

• Rising disposable incomes and expanding affluent demographics are creating opportunities for cognac adoption across luxury retail outlets, premium restaurants, and high-end hospitality venues in major urban markets and tourist destinations.
• Growing luxury consumption culture and international brand appreciation are driving adoption of premium cognac products among consumers seeking status representation, sophisticated consumption, and authentic French luxury experiences.

Germany Demonstrates Quality Excellence with Luxury Appreciation

Revenue from cognac in Germany is expanding at a CAGR of 3.3%, driven by the country's sophisticated consumer preferences, quality appreciation culture, and established luxury goods market supporting premium spirits consumption. Germany's consumer sophistication and quality standards are driving demand for authentic cognac solutions. Leading spirits importers and luxury retailers are establishing comprehensive quality marketing programs for premium French spirits.

• Advanced consumer sophistication and quality appreciation are creating demand for premium cognac products among discerning consumers seeking authentic craftsmanship, heritage authenticity, and exceptional quality characteristics.
• Strong luxury goods market and consumer education focus are supporting the adoption of premium cognac offerings across specialized spirits retailers, luxury department stores, and sophisticated hospitality venues throughout major metropolitan regions.

France Focuses on Heritage Excellence and Tourism Integration

Revenue from cognac in France is expanding at a CAGR of 3.1%, driven by the country's heritage appreciation, domestic premium consumption, and comprehensive integration of cognac into French cultural and tourism experiences supporting authentic consumption and cultural appreciation. France's cultural authenticity and heritage pride are supporting investment in premium cognac positioning. Major cognac producers and tourism operators are establishing comprehensive heritage programs incorporating cognac with French cultural experiences.

• Advanced heritage appreciation and cultural authenticity are creating demand for premium cognac products throughout specialist retailers, heritage sites, and cultural tourism venues serving domestic and international consumers seeking authentic French experiences.
• Strong tourism integration and cultural positioning are driving the adoption of cognac experiences across distillery visits, cultural tours, and premium hospitality venues throughout the Cognac region and major French cultural destinations.

UK Shows Market Leadership with Premium Spirits Sophistication

Revenue from cognac in the UK is expanding at a CAGR of 3.0%, supported by the country's mature luxury spirits market, sophisticated drinking culture, and strong appreciation for premium French products supporting cognac integration into British luxury consumption patterns. The UK's spirits sophistication and luxury market maturity are driving demand for authentic cognac solutions. Leading spirits retailers and luxury establishments are investing in premium cognac positioning and consumer education for discerning customers.

• Advanced luxury spirits market and consumer sophistication are creating opportunities for premium cognac products throughout specialized spirits retailers, luxury bars, and high-end dining establishments serving affluent and sophisticated consumer segments.
• Strong premium consumption traditions and French product appreciation are driving the adoption of cognac across luxury consumption occasions, premium gifting, and sophisticated entertainment venues targeting discerning spirits consumers.

South Korea Demonstrates Luxury Leadership with Premium Lifestyle Integration

Revenue from cognac in South Korea is expanding at a CAGR of 2.8%, supported by the country's luxury lifestyle adoption, growing appreciation for premium imported spirits, and sophisticated consumption culture supporting cognac integration into Korean luxury and business entertainment. The nation's luxury consumption trends and international brand appreciation are driving demand for premium cognac solutions. Leading luxury importers are investing extensively in premium brand positioning and sophisticated market development.

• Advanced luxury lifestyle trends and business entertainment culture are creating demand for premium cognac products throughout luxury establishments, premium hotels, and high-end entertainment venues serving affluent consumer segments and business entertainment.
• Strong international brand appreciation and status consumption patterns are supporting the adoption of cognac across luxury retail, premium gifting, and sophisticated social consumption occasions targeting luxury-conscious consumers.

Japan Shows Premium Focus with Sophisticated Spirits Culture

Revenue from cognac in Japan is expanding at a CAGR of 2.6%, supported by the country's sophisticated spirits culture, appreciation for craftsmanship quality, and established premium consumption traditions supporting cognac adoption among discerning Japanese consumers and luxury market segments. Japan's quality consciousness and craftsmanship appreciation are driving demand for authentic cognac products. Leading spirits importers and premium retailers are investing in specialized capabilities for sophisticated consumer education and premium positioning.

• Advanced spirits culture and craftsmanship appreciation are creating opportunities for premium cognac products throughout specialized spirits retailers, luxury bars, and premium dining establishments serving quality-conscious and sophisticated consumer segments.
• Strong quality standards and premium consumption traditions are driving adoption of exceptional cognac offerings meeting Japanese consumer expectations for authenticity, craftsmanship excellence, and sophisticated consumption experiences across diverse luxury applications.

Europe Market Split by Country

The cognac market in Europe is projected to grow from USD 2.8 billion in 2025 to USD 3.9 billion by 2035, registering a CAGR of 3.2% over the forecast period. France is expected to maintain leadership with a 42.9% market share in 2025, moderating to 42.3% by 2035, supported by heritage authenticity, domestic premium consumption, and comprehensive tourism integration.

Germany follows with 21.4% in 2025, projected to reach 21.7% by 2035, driven by sophisticated consumer preferences, quality appreciation culture, and established luxury goods market. The United Kingdom holds 18.9% in 2025, expected to reach 19.2% by 2035 due to mature luxury spirits market and sophisticated drinking culture. Italy commands 9.6% in 2025, rising to 9.7% by 2035, while Spain accounts for 4.6% in 2025, reaching 4.7% by 2035. The Rest of Europe region is anticipated to hold 2.6% in 2025 and 2.4% by 2035, reflecting steady luxury spirits market development in Nordic countries and emerging premium consumption markets in Eastern European countries.

Competitive Landscape of the Cognac Market

The cognac market is characterized by competition among established French cognac houses, luxury spirits conglomerates, and premium brand portfolio companies. Companies are investing in heritage marketing development, premium positioning strategies, global distribution expansion, and experiential brand development to deliver authentic, prestigious, and accessible cognac solutions. Innovation in brand storytelling, limited edition releases, and luxury experience development is central to strengthening market position and competitive advantage.

LVMH leads the market with a 25% share through its Hennessy brand, offering comprehensive cognac solutions with focus on luxury positioning, global distribution excellence, and innovative marketing approaches across diverse consumer segments and luxury applications. The company continues investing in production capacity, heritage marketing, and global brand development while expanding premium portfolio and luxury experience offerings. Rémy Cointreau provides premium cognac solutions with emphasis on authenticity and craftsmanship. Pernod Ricard offers extensive spirits portfolio with global reach. Beam Suntory focuses on premium spirits development and Asian market expansion. Camus emphasizes family heritage and traditional craftsmanship. Multiple independent cognac houses maintain authentic regional positioning.

Key Players in the Cognac Market

• LVMH (Hennessy)
• Rémy Cointreau
• Pernod Ricard (Martell)
• Beam Suntory
• Camus
• Courvoisier
• Larsen
• Delamain
• Otard
• Hardy

Scope of the Report

Items	Values
Quantitative Units (2025)	USD 8.2 billion
Grade	VS/VSOP, XO and Above, Hors d'Age/Special
Distribution Channel	Off-Trade Retail, On-Trade, Travel Retail
Price Tier	Premium, Standard, Value
Regions Covered	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Countries Covered	USA, Mexico, Germany, France, UK, Japan, South Korea, and 40+ countries
Key Companies Profiled	LVMH, Rémy Cointreau, Pernod Ricard, Beam Suntory, Camus
Additional Attributes	Dollar sales by grade and distribution channel, regional demand trends, competitive landscape, brand heritage development, luxury positioning strategies, experiential marketing innovation, and consumer sophistication optimization

Cognac Market by Segments

• Grade :

  • VS/VSOP
  • XO and Above
  • Hors d'Age/Special

• Distribution Channel :

  • Off-Trade Retail
  • On-Trade
  • Travel Retail

• Price Tier :

  • Premium
  • Standard
  • Value

• Region :

  • North America

    • United States
    • Canada
    • Mexico

  • Europe

    • France
    • United Kingdom
    • Germany
    • Italy
    • Spain
    • Netherlands
    • Rest of Europe

  • Asia-Pacific

    • Japan
    • South Korea
    • China
    • India
    • Australia
    • Rest of Asia-Pacific

  • Latin America

    • Brazil
    • Argentina
    • Rest of Latin America

  • Middle East & Africa

    • Kingdom of Saudi Arabia
    • South Africa
    • Rest of Middle East & Africa