What is Cognac?
Cognac is a type of Brandy, which has been named Cognac after the place of its origin in Cognac, France. This variety of Brandy is mostly made using the Ugni Blanc, and Folle Blanche types of grapes, which are mostly grown in the French region of Cognac. The Cognac can be segmented under different categories, that is VS, VSOP, XO and XXO. With VS being the cheapest and most popular along with VSOP. Rapid urbanisation and rise of disposable income has led to the growth of the cognac market. Geographically, Europe and North America are the two significant markets of the Cognac.
The market study is broken down by Type (VS (Very Special), VSOP (Very Special Old Pale), XO (Extra Old) and XXO (Extra Extra Old)) and major geographies with country level break-up.
Growth of the alcohol consumption driven by rapid urbanisation and rise of disposable incomes has led to the growth of the Cognac market. Cognacs are expensive spirits because of longer duration of aging and care distillation required. Europe is the primary market of the Cognac along with Asia Pacific region. Established and emerging Vendors should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Courvoisier S.A.S. (France), Louis Royer SAS (France), KELT International (France), Rémy Martin (France), Maison Ferrand (France), Thomas HINE & Co. (France), Meukow Cognac (France), Pernod Ricard (France), Branded Spirits Limited (United States) and Novovino Wine Company (United States) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research coverage are Bache Gabrielsen (France), Tiffon (France) and Gautier Cognac (France).
Segmentation Overview
AdvanceMarketAnalytics has segmented the market of Global Cognac market by Type, Application and Region.
On the basis of geography, the market of Cognac has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Grape Varities, the sub-segment i.e. Ugni Blanc will boost the Cognac market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Distribution Channel, the sub-segment i.e. Online {E-Commerce Stores} will boost the Cognac market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Market Leaders and their expansionary development strategies
In 2020, Beam Suntory, Inc. an American alcoholic beverage manufacturer has announced acquisition of On The Rocks line of premium cocktails, which are one of the fastest growing ready-to-drink cocktail brand. The acquisition is perfectly aligned for both the companies, as On The Rocks uses Beam Sunitory’s brands in its spirits. The acquisition will strengthen the market of the Beam Suntory as well as provide better distribution network for On The Rocks to expand its market.
Market Trend
- Very Special Segment Accounts for Largest Market Share
Market Drivers
- Rapid Urbanisation has led to Growth of the Alcoholic Consumption
- Increase in Per Capita Incomes and thus the Disposable Incomes
- Growth in the Cognac Distilleries
Opportunities
- Online Market Place Presents Huge Opportunity to Expand Customer Base
Restraints
- Competition from Alternate Types of Brandy or Other Hard Liquors
Challenges
- High Cost of the High Quality Cognacs
Key Target Audience
Cognac Manufacturers, Suppliers and Distributors, Raw Material Suppliers, New Entrants/Investors, Venture Capitalists and Private Equity Firms, Government Regulatory and Research Organizations and End-Use Industries
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have the better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with purpose to understand companys positioning regarding market value, volume and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders etc. and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, analyst team keeps preparing set of questionnaires and after getting appointee list; the target audience are then tapped and segregated with various mediums and channels that are feasible for making connection that includes email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey etc.