Global Cognac sales are predicted to increase by US$303.59 million between 2021 and 2025, boosted by demand from North America, according to a new report.
According to a report from market analysis firm Technavio, global sales of Cognac are projected to increase by 2% compound annual growth rate (CAGR) until 2025. In 2021, value growth for the category is projected to rise by 1.34%.
The report, titled Cognac Market by Product, Distribution Channel, and Geography – Forecast and Analysis 2021-2025, analysed the impact of product types, distribution channels and varying global regions will have on the Cognac sector in the next five years.
The report found that North America will drive the category’s growth during the period. In 2020, the region accounted for 44% of global Cognac sales.
Technavio reported that the VS Cognac segment will also offer ‘maximum opportunities’ for growth during the period.
According to the report, new product launches will also drive the category’s growth. Technavio highlighted producers including Beam Suntory, which owns Courvoisier Cognac, Majeste Cognac and LVMH-owned Hennessy as being brands to watch during this time.
Prevalence of new products in the category will attract new customers, expand Cognac’s presence and give the sector ‘a competitive edge’, the report said.
A senior analyst at Technavio added: “Emergence of online distribution platforms will further boost market growth during the forecast period.”
Earlier this month, the US and EU agreed to a four-month suspension of tariffs on products from both nations, including Cognac. The ‘promising breakthrough’ was welcomed by trade group the Distilled Spirits Council of the US.
Via The Spirits Business