Understanding Cognac’s global growth potential

The global Cognac market is expected to grow by $897.31 million from 2023 to 2027, with a CAGR of 3.64%, driven by increasing health awareness and its use in food and cocktails. Despite facing competition from other alcoholic beverages, Cognac's versatility and popularity, particularly in the US, are emphasized. Prominent brands like Hennessy and Meukow are noted, with Hennessy Black being marketed as a mixable brandy. The influence of millennials and socialization on premium liquor consumption is significant. Challenges include competition from other spirits and regional preferences, especially in Europe and APAC. To maintain growth, innovative marketing and product development are recommended.

The global Cognac category will grow by US$897.31 million from 2023-2027 according to a new report from Technavio. The sector, which is estimated to grow at a CAGR of about 3.64% during the forecast period, is being driven by the “rising awareness of the health benefits of Cognac” as well as the trend towards using it in food recipes or mixed into cocktails. According to the report findings, “growing competition from other alcoholic beverages poses a challenge” but, despite this, the analysis outlines how “Cognac is a versatile drink with a wide range of applications. It can be enjoyed neat, on the rocks, or diluted with water”. The analysts amplified this point by highlighting how “Cognac is commonly used as a mixer in various cocktails such as Sidecar, B and B, Horses Neck, and Brandy Alexander”. Giving a nod to brands, the findings described how “Hennessy and Meukow” have recently become “popular choices” with “Hennessy Black, in particular, being marketed as a mixable brandy” ...