Global Brandy Market Overview, 2023-28

In Global, economic growth and increasing disposable incomes, particularly in emerging markets, have led to higher purchasing power and a shift towards premium and luxury products, including brandy. As consumers have more discretionary income, they are willing to explore and invest in higher-end brandy options. Furthermore, growing consumer interest in premium spirits and craft beverages has fuelled the demand for high-quality brandy. Consumers are seeking unique and sophisticated flavour profiles, leading to an increased appreciation for aged and premium brandy offerings. Moreover, the resurgence of cocktail culture and the rise of mixology have boosted the demand for brandy. Mixologists and bartenders are incorporating brandy into innovative and craft cocktails, showcasing its versatility as a base spirit. This trend has contributed to the increased consumption and exploration of brandy among younger consumers. In addition, tourism plays a significant role in promoting brandy consumption, especially in regions with renowned brandy-producing areas. Distilleries offering tours, tastings, and immersive experiences create a direct connection between consumers and the brandy-making process. Experiential marketing initiatives enhance brand awareness, encourage brand loyalty, and drive sales. Furthermore, while excessive alcohol consumption can have adverse health effects, moderate alcohol consumption is often associated with certain health benefits. Moderate drinking cultures and the belief that brandy, when consumed responsibly, can offer health advantages, such as improved digestion or heart health, have contributed to its popularity. According to the research report," Global Brandy Market Overview, 2023-28" published by Bonafide Research, the market is anticipated to across USD 51.57 Billion market size by 2028, increasing from USD 35.99 Billion in 2022. The market is projected to grow with 6.26% CAGR by 2023-28. The focus on sustainability and environmental responsibility is influencing the brandy market. Consumers are becoming more conscious of the environmental impact of their choices and are seeking brands that prioritise sustainable sourcing, production practises, and packaging. Distilleries are adopting eco-friendly initiatives, such as using renewable energy, reducing water usage, and implementing recycling programmes. Furthermore, collaborations between brandy producers and other luxury brands or renowned personalities are becoming more prevalent. These collaborations result in limited-edition brandy releases, often featuring unique packaging designs and marketing campaigns. These partnerships create exclusivity, generate buzz, and attract collectors and enthusiasts. Moreover, the resurgence of cocktail culture globally has had a positive impact on the brandy market. Bartenders and mixologists are rediscovering brandy as a versatile base spirit for crafting innovative and complex cocktails. Brandies are being incorporated into classic cocktails as well as modern interpretations, showcasing their mixability and flavour profiles. In addition, customization and personalization are gaining traction in the brandy market. Some brands offer personalised bottle engravings, custom blending experiences, or the ability to create bespoke brandy expressions tailored to individual preferences. This trend adds an element of exclusivity and allows consumers to have a unique brandy experience.

While grape brandy remains dominant, non-grape brandies are gaining traction. Fruit brandies, such as apple, pear, or cherry brandies, are finding appreciation among consumers looking for unique flavor profiles. Other non-grape brandies, like brandies made from grain or agave, are also gaining visibility. In addition, Cognac is renowned for its high quality and premium image. It is produced using specific grapes, mainly Ugni Blanc, which are carefully selected and distilled twice in copper stills. The aging process involves maturation in oak barrels for a minimum of two years, although many Cognacs are aged for much longer periods. This meticulous production process results in a luxurious and refined spirit that is associated with sophistication and prestige. The strong reputation of Cognac as a top-quality spirit drives its demand and contributes to its projected growth. The Value segment offers brandies at a more affordable price range, making them accessible to a broader range of consumers. This includes budget-conscious consumers, younger demographics, and those who are new to brandy or exploring different options. The lower price point allows a larger consumer base to enter the market, driving the demand and sales volume for the Value segment. Furthermore, Consumers, even those with higher purchasing power, are increasingly seeking value-for-money products. They want to ensure they receive a satisfactory quality-to-price ratio for their purchases. The Value segment caters to this demand by offering brandies that provide decent quality at an affordable price. Several well-known brands in the Value segment include E & J Gallo Winery's E & J Brandy, Paul Masson Grande Amber Brandy, and Christian Brothers Brandy. In addition, The Super Premium segment is associated with luxury, exclusivity, and prestige. Consumers who are willing to spend more on premium spirits seek brandies that represent a status symbol or a symbol of sophistication. The Super Premium segment fulfills this desire by offering brandies with a rich heritage, superior packaging, and a brand story that resonates with the affluent consumer base. Brands such as Hennessy, Rémy Martin, and Courvoisier are known for their offerings in the Super Premium segment. On-Trade establishments often focus on offering a premium brand experience. They curate their brandy selections carefully, including a wide range of premium and super-premium offerings. These establishments provide an environment that enhances the brandy drinking experience, including knowledgeable staff, appropriate glassware, and ambiance conducive to savouring the spirit. For instance, On-Trade establishments include high-end bars like The Dead Rabbit in New York City, renowned hotel bars like The Savoy's American Bar in London, and Michelin-starred restaurants with extensive brandy offerings such as Eleven Madison Park in New York City. In addition, Off-Trade outlets often run promotions, discounts, and special offers on brandy products. This can include bundle deals, loyalty programs, seasonal discounts, and promotional pricing, making brandy more affordable and attractive to consumers. For instance, Off-Trade retail outlets include major liquor store chains like Total Wine & More, supermarket chains like Walmart and Tesco, online platforms like Drizly and Master of Malt, and duty-free shops at airports and international travel hubs. The Asia Pacific region has witnessed significant economic growth over the past few decades, leading to an increase in disposable income among the population. As a result, consumers in countries like China, India, and Japan have more purchasing power, allowing them to explore and invest in premium alcoholic beverages like brandy. Furthermore, The Asia Pacific region is experiencing a significant wave of urbanization, with a growing number of people moving to cities. Urban areas are often associated with higher income levels and exposure to international trends and cultures. The urban population has shown a greater interest in Western alcoholic beverages, including brandy, contributing to its growing demand. In addition, the influence of Western culture, particularly European and American, has had a significant impact on the drinking habits and preferences of consumers in the Asia Pacific region. Brandy, being a popular spirit in many Western countries, has gained traction as a result of cultural exchanges, international travel, and exposure to Western media and lifestyle trends. Major Companies present in the market: Considered in this report • Geography: Global • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

Regions & Countries covered in the report: • North America • Europe • Asia-Pacific • South America • Middle East & Africa Aspects covered in this report • Global Brandy market with its value and forecast along with its segments • Region-wise Brandy market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • Grape Brandy • Calvados • Cognac • Armagnac • Fruit Brandy • Others(Dried Fruit Brandy, Peach Brandy, Pomace brandy) By Price • Value • Premium • High End Premium • Super Premium By Distribution channel • Off Trade • On Trade The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Brandy industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.