Brandy Market

Global Brandy Market:

The global brandy market size reached USD 27.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 38.2 Billion by 2033, exhibiting a growth rate (CAGR) of 3.52% during 2025-2033. The increasing consumer preference for premium and aged spirits, rising younger population, innovative marketing campaign by manufacturers, expansion of e-commerce platforms, and shifting trend towards sustainable practices are some of the major factors propelling the market growth.

Brandy Market Analysis:

• Major Market Drivers: Rising consumer demand for high-quality and aged brandies, driven by increasing disposable incomes and a preference for luxury products, is primarily catalyzing the growth of the market.
• Key Market Trends: The growing popularity of brandy-based cocktails and mixology trends, expanding the consumer base beyond traditional consumption patterns, is one of the significant factors bolstering the market growth.
• Competitive Landscape: Some of the leading companies operating in the global market include Courvoisier Cognac (Beam Suntory Inc.), Diageo Plc, E. & J. Gallo Winery, Emperador (Alliance Global Group, Inc.), F. Korbel & Bros., Martell, Speciality Brands Ltd., Rémy Cointreau, Thomas HINE & Co. (EDV SAS), and Yantai Changyu Pioneer Wine Company Limited, among others.
• Geographical Trends: According to the report, North America accounted for the largest market share. The beverage culture in the region has a long-standing tradition of consuming spirits, including brandy, which has been further fortified by an evolving palate among consumers for premium and flavored products.
• Challenges and Opportunities: Challenges in the brandy market include navigating regulatory complexities and competition from other spirit categories. Opportunities lie in expanding global consumer appreciation for premium and craft brandies, leveraging innovation in flavors and sustainable practices to attract diverse consumer segments. These opportunites are expected to propel the brandy market share in the coming years.
   

Global Brandy Market Trends:

Increasing Consumer Preference for Premium and Aged Spirits

The burgeoning consumer demand for premium and aged spirits is significantly propelling the brandy market. This shift towards premium products reflects a broader lifestyle trend, where consumers are becoming increasingly educated about what they consume and are willing to invest in superior-quality beverages that offer a unique, enriching experience. As a result, various key market players are launching premium vaiants of brandy. For instance, in February 2022, Bacardi India launched Good Man Premium Brandyr. It is designed specifically for the domestic customer base. The premium blended brandy is Bacardi India's first foray into the brandy and Indian-made foreign liquor (IMFL) category. It is made from a blend of French and Indian grape brands. In addition to this, the inflating spending capacities of individuals across the globe are also propelling the brandy market value. For instance, India's per capita disposable income grew 8% in FY24 and 13.3% in the previous year. Similarly, disposable personal income in the United States increased to US$ 20882.90 Billion in March from US$ 20718.90 Billion in February, 2024. A rise in the spending capacities is anticipated to increase the uptake of premium brandies in the coming years.

Rising Number of On-Trade Venues

The escalating number of on-trade venues, such as bars, restaurants, and hotels, is a significant driver in the brandy market. These venues provide a platform for brandy producers to showcase their products and educate consumers through expertly crafted cocktails and tastings. In 2022, the bar and nightclub sector size increased to US$ 35.3 Billion, up from the previous year's total of US$ 22.91 Billion. Additionally, various established bars and clubs are increasingly investing in expansion and adding a wide variety of brandies to their menus to attract a large consumer base and augment sales. For instance, in October 2021, Masque Restaurant opened a bar within the restaurant with offers a wide array of alcoholic drinks in Mumbai, India. Similarly, in March 2022, Daniel's Chai Bar, based in Brampton, Canada, announced a new pop-up location at Vaughan Mills near Toronto. Additionally, the knowledgeable staff at on-trade venues can influence consumer choices by recommending different brandy options based on preferences and occasions, thereby boosting brandy market demand.

Growing Product Offerings

The increasing diversity and innovation in brandy products are further offering lucrative growth opportunities to the overall market. Various key market players are focussing on launching brandy with a wide range of price options to cater to consumers of all classes. For instance, in March 2024, The Tamil Nadu State Marketing Corporation introduced a new brandy called "Veeran" (Hero). This brandy falls under the ordinary range category, targeting budget-conscious consumers. Similarly, in November 2023, Tamworth Distilling launched a trout-flavored brandy. Additionally, the entry of new market players in the industry is also propelling the brandy market growth. For instance, in February 2024, a comedian Charlie Berens launched his own brandy liquor, "Manitowoc Minute". Producers are expanding their portfolios to cater to evolving consumer tastes and preferences, offering variations such as aged, single vintage, and specialty releases. This diversification is not only enhancing consumer choice but also stimulating interest in brandy among a broader audience, catalyzing the brandy market revenue.

Global Brandy Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global brandy market report, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on product type, price, and distribution channel.

Breakup by Product Type:

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

Cognac dominates the market

The report has provided a detailed breakup and analysis of the market based on product type. This includes grape brandy, Cognac, armagnac, fruit brandy, and others. According to the report, Cognac represented the largest segment.

Cognac is dominating the market as it benefits from a strict appellation system that mandates the spirit to be produced in the Cognac region of France, following precise guidelines. This geographical indication adds an element of exclusivity and ensures a high level of quality. Furthermore, the marketing and branding efforts behind Cognac have successfully positioned it as a luxurious and aspirational product. In line with this, the use of high-profile celebrity endorsements and strategic product placements in films and popular culture further solidifies its upscale image. Additionally, the aging process for Cognac often surpasses that of other brandies, resulting in a more complex and desirable flavor profile. Moreover, consumers associate this longer maturation time with superior quality and are often willing to pay a premium for aged Cognacs.

Breakup by Price:

• Value
• High-End Premium
• Super Premium
• Premium
   

A detailed breakup and analysis of the market based on price has also been provided in the report. This includes value, high-end premium, super premium, and premium.

Premium brandy is associated with high quality, craftsmanship, and a rich heritage. In addition, consumers are willing to pay a higher price for products they perceive as superior. Furthermore, the brandy market often targets an affluent consumer base that is less price-sensitive and more willing to invest in premium products. Super-premium brandy utilizes aged casks, superior raw materials, and refined distillation techniques, underscoring the perceived value and quality of the product. Furthermore, it cultivates an aura of exclusivity, attracting consumers who are seeking unique, limited-edition products.

Breakup by Distribution Channel:

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

On-trade holds the largest share in the market

A detailed breakup and analysis of the market based on distribution channel has also been provided in the report. This includes supermarkets and hypermarkets, exclusive stores, on-trade, and others. According to the report, on-trade accounted for the largest market share.

On-trade venues such as bars, restaurants, and hotels enhance consumer experiences with expertly crafted cocktails and the chance to sample various brandy brands, bolstering sales. Their knowledgeable staff influences consumer decisions by offering insightful product recommendations. Furthermore, these venues strategically position brands, enhancing visibility and consumer acceptance. In addition to this, the growing party culture and increasing number of social gatherings are also influencing the growth of this segment. For instance, according to a 2017 report, 51% of Americans aged 21 to 26 typically go to a bar at least once per week. Besides this, brands are frequently collaborating with on-trade venues for events, tastings, or promotions, which is positively impacting the brandy market outlook.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America 
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest brandy market share

The brandy market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

The beverage culture in North America has a long-standing tradition of consuming spirits, including brandy, which has been further fortified by an evolving palate among consumers for premium and flavored products. Moreover, the region has a high level of disposable income, which allows consumers to opt for premium and aged brandy, thus driving the market demand. As per the report published by the Distilled Spirits Council in February 2022, the US spirits market generates around US$ 200 million in economic activity. Additionally, the prevalence of drinking trends is aiding the growth of the market. For instance, according to data published by Statistics Canada (Canadian Community Health Survey), 15.6% of Canadians were considered heavy alcohol drinkers. This factor is driving the sales of brandy across North America. Besides this, North America has a well-established distribution network, including both online and offline retail channels, which makes brandy readily accessible to consumers across the region. This, in turn, is anticipated to propel the brandy market price in the coming years.

Competitive Landscape:

Leading brandy companies are investing in research and innovation to introduce new flavors, blends, and limited-edition to attract consumers and diversify their offerings. Additionally, they are forming strategic alliances with celebrities, artists, and other popular brands to boost brand image and consumer engagement. Furthermore, companies are engaging in high-profile marketing campaigns, often through digital channels, to increase brand awareness and customer loyalty. Besides this, major players are working with local partners or distributors to gain a foothold in emerging markets. Moreover, top companies are incorporating eco-friendly practices in production, packaging, and distribution to attract eco-conscious consumers. Along with this, leading players are using technology, including social media and mobile apps, to engage with customers, offering rewards, promotions, and exclusive experiences.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Courvoisier Cognac (Beam Suntory Inc.)
• Diageo Plc
• E. & J. Gallo Winery
• Emperador (Alliance Global Group, Inc.)
• F. Korbel & Bros.
• Martell
• Speciality Brands Ltd.
• Rémy Cointreau
• Thomas HINE & Co.(EDV SAS)
• Yantai Changyu Pioneer Wine Company Limited
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Brandy Market News:

• May 2024: Tilaknagar Industries announced the unveiling of a new flavor innovation under its Mansion House Flandy range. The new range is launched in an all-new Green Apple flavor, currently accessible in the state of Telangana.
• March 2024: The Tamil Nadu State Marketing Corporation introduced a new brandy called "Veeran" (Hero). This brandy falls under ordinary range category, targeting budget-conscious consumers.
• February 2024: A comedian, Charlie Berens, launched his own brandy liquor, “Manitowoc Minute”.

Global Brandy Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the brandy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global brandy market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the brandy industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.