While Cognac may evoke images of quiet, oak-aged cellars in France, its global export value roared to €4.9 billion in 2022, with the United States alone consuming nearly half the world’s supply.
Key Takeaways
- In 2022, Cognac production totaled 470,450 hectoliters of pure alcohol (hpa), marking a slight increase from 464,900 hpa in 2021
- The 2023 harvest in the Cognac region yielded 1,020,000 hectoliters of wine, down 5% from 2022 due to weather challenges
- Cognac's vineyard area spans 81,998 hectares as of 2023, primarily planted with Ugni Blanc grapes which account for 99% of vines
- In 2022, Cognac market volume reached 240 million bottles, up 4% YoY
- Global Cognac sales value hit €4.9 billion in 2022, driven by premium segments
- VS Cognac accounted for 80% of 2022 shipments by volume but only 60% by value
- Global Cognac exports reached €4.9 billion in 2022, up 15% YoY
- United States imported 101 million bottles of Cognac in 2022, 42% of total exports
- China imported 17 million bottles in 2022, growing 28% from 2021
- Hennessy holds 40% global Cognac market share by volume in 2023
- Remy Martin commands 12% market share, focusing on premium XO
- Courvoisier has 8% share, owned by Beam Suntory
- United States consumes 45% of global Cognac, 110 million bottles in 2023
- Per capita Cognac consumption in US is 0.3 liters annually, highest globally
- China consumption reached 20 million bottles in 2023, driven by gifting
Cognac production grew slightly in 2022, led by premium sales and strong US demand.
Consumption Patterns and Trends
- United States consumes 45% of global Cognac, 110 million bottles in 2023
- Per capita Cognac consumption in US is 0.3 liters annually, highest globally
- China consumption reached 20 million bottles in 2023, driven by gifting
- Cocktail usage like Sidecar boosted Cognac on-trade by 25% in US 2023
- Women represent 35% of Cognac drinkers in 2023, up from 20% in 2015
- Millennials (25-40) account for 50% of premium Cognac volume growth
- Hip-hop culture endorsement increased US Cognac sales 300% since 2000
- Average age of Cognac drinker dropped to 42 years in 2023 from 50 in 2010
- Neat serving preference rose to 40% in premium segments 2023
- Asia-Pacific consumption CAGR 7% projected to 2028
- France per capita consumption 1.2 liters, mostly domestic blends
- UK Cognac consumption favors VSOP, 15 million bottles annually
- Sustainability influences 60% of young buyers' Cognac choices in 2023
- Low/no-alcohol Cognac demand up 50% in 2023 surveys
- Premiumization trend: 70% value growth from XO+ in 2022-2023
- E-commerce penetration for Cognac at 15% of sales in US 2023
- Dark spirits including Cognac grew 5% in global volume 2023
- Single estate Cognac consumption up 20% among collectors 2023
- Health-conscious mixing with soda reduced ABV perception in young consumers
- Global per capita spirits consumption includes 0.08 liters Cognac average
Consumption Patterns and Trends Interpretation
America may gulp nearly half the world's Cognac, but its true power lies in transforming the once-stuffy spirit into a vibrant, diverse, and cocktail-shaking culture where neat sipping, hip-hop playlists, and mindful consumption all coexist at the same, increasingly younger, table.
Exports and Imports
- Global Cognac exports reached €4.9 billion in 2022, up 15% YoY
- United States imported 101 million bottles of Cognac in 2022, 42% of total exports
- China imported 17 million bottles in 2022, growing 28% from 2021
- UK Cognac imports totaled 12 million bottles in 2022, down 2% due to inflation
- Japan imported 8.5 million bottles of Cognac in 2022, stable YoY
- Russia exports dropped 50% to 2 million bottles in 2022 amid sanctions
- South Korea Cognac imports rose 35% to 4 million bottles in 2022
- Australia imported 3.2 million bottles in 2022, up 10%
- Germany took 6 million bottles in 2022, Europe's largest importer
- Brazil imports grew 20% to 2.8 million bottles in 2022
- Duty-free and travel retail Cognac sales hit 15 million bottles in 2022
- Africa/Middle East region imported 10 million bottles in 2022, up 8%
- Canada Cognac imports reached 4.5 million bottles in 2022
- India imports doubled to 1.2 million bottles in 2022
- Mexico imported 2.1 million bottles, up 15%
- EU intra-trade accounted for 20% of Cognac movements in 2022
- Average export price per liter of Cognac was €18.5 in 2022
- Hennessy brand exported 70 million bottles in 2022, 29% of total Cognac
- Remy Martin exports grew 18% to 22 million bottles in FY2022
Exports and Imports Interpretation
The global thirst for Cognac continues to surge, revealing a world where America drinks with impressive volume, China ascends with speed, and while the British tighten their belts and Russia faces a drought, emerging markets from Seoul to São Paulo are enthusiastically raising their glasses.
Major Brands and Producers
- Hennessy holds 40% global Cognac market share by volume in 2023
- Remy Martin commands 12% market share, focusing on premium XO
- Courvoisier has 8% share, owned by Beam Suntory
- Martell, Pernod Ricard brand, holds 7% share with strong China presence
- Camus family-owned, produces 3 million bottles annually, 1.5% share
- Frapin produces 250,000 bottles yearly from estate vineyards
- Hine Cognac, owned by EDV, exports 1 million bottles
- Meukow, independent, specializes in VSOP with 800,000 bottles
- Normandin-Mercier family producer of 400,000 bottles, organic focus
- Delamain, ultra-premium, ages 20+ years, 150,000 bottles
- LVMH's Hennessy operates 42 distilleries, employs 4,000
- Remy Cointreau's Remy Martin sources from 1,000 growers
- Over 200 houses blend Cognac, but top 4 control 85% volume
- Park Cognac from South Africa partnership exported 500,000 bottles
- Bisquit Dubouché, revived brand, 300,000 bottles annually
- Braastad, Norwegian-owned, premium niche 100,000 bottles
- Salignac, value brand, 2 million bottles for entry-level
- Baron Otard, Chateau de Cognac producer, 200,000 bottles
- Hardy Cognac, revived by Rare Champagne, 150,000 bottles
- Louis Royer, Paton family, 400,000 bottles with floral notes
Major Brands and Producers Interpretation
While Hennessy towers over the Cognac world like a benevolent giant sipping from half the world’s glasses, the true spirit of the industry is found in the meticulous craft of smaller houses, where families and niche producers fiercely guard their patches of vineyard and tradition in the long shadow of the giants.
Market and Sales
- In 2022, Cognac market volume reached 240 million bottles, up 4% YoY
- Global Cognac sales value hit €4.9 billion in 2022, driven by premium segments
- VS Cognac accounted for 80% of 2022 shipments by volume but only 60% by value
- Premium Cognac (VSOP and above) grew 12% in value in 2022
- US market share of Cognac was 45% of global exports in 2022, valued at €2.1 billion
- China Cognac imports surged 25% to €500 million in 2022 post-pandemic recovery
- Off-trade Cognac sales dominated 70% of volume in 2023, with on-trade rebounding
- Cognac average price per bottle rose 8% to €25 in 2022 globally
- E-commerce Cognac sales grew 30% in 2022, especially in premium tiers
- France domestic Cognac sales were 15 million bottles in 2022, stable YoY
- XO Cognac segment expanded 15% in volume to 25 million bottles in 2022
- Cognac market projected to grow at 4.5% CAGR to 2028, reaching 280 million bottles
- Sustainable packaging drove 20% of Cognac sales in premium markets in 2023
- Ready-to-drink Cognac variants launched, capturing 2% market share in 2023
- Millennial buyers shifted Cognac to 40% of volume in key markets by 2023
- Non-Alcoholic Cognac alternatives emerged, with 5% trial rate in 2023 surveys
- Cognac tourism generated €200 million in 2022 from 1 million visitors
- Private label Cognac held 5% market share in Europe in 2022
Market and Sales Interpretation
While the masses keep the lights on with volume, it's the premium sips, savvy new markets, and evolving consumer rituals that are truly bottling the future—and raising the price.
Production Statistics
- In 2022, Cognac production totaled 470,450 hectoliters of pure alcohol (hpa), marking a slight increase from 464,900 hpa in 2021
- The 2023 harvest in the Cognac region yielded 1,020,000 hectoliters of wine, down 5% from 2022 due to weather challenges
- Cognac's vineyard area spans 81,998 hectares as of 2023, primarily planted with Ugni Blanc grapes which account for 99% of vines
- In 2022, the Charente region produced 65% of all Cognac eaux-de-vie, with Petite Champagne contributing 23%
- Average yield per hectare in Cognac vineyards was 82 hectoliters of wine per hectare in 2023, regulated by appellation rules
- Over 4,000 winegrowers manage Cognac vineyards, distilling 98% of their wine into eau-de-vie locally
- Cognac distillation occurs between November 1 and March 31, using traditional Charentais alambics holding 25-30 hectoliters
- In 2022, 1.2 million hectoliters of wine were distilled into Cognac eau-de-vie
- Grande Champagne cru represents 17% of Cognac production area but produces premium spirits aged longer
- Borderies cru, the smallest at 4% of area, yields floral eaux-de-vie from clay-limestone soils
- Fins Bois cru covers 65% of Cognac area, producing lighter eaux-de-vie for younger blends
- Bois Ordinaires and Bois Communs crus make up the remaining production zones with sandy soils
- Cognac aging requires oak barrels from Limousin or Tronçais forests, with minimum 2 years for VS
- Annual evaporation loss in Cognac cellars, known as "la part des anges," averages 3-4% per year
- 98% of Cognac is blended from eaux-de-vie of different crus, ages, and vintages by 1,200 cellarmen
- In 2023, organic vineyards in Cognac covered 1,200 hectares, up 20% from 2022
- Ugni Blanc yields 80-90 hl/ha, Folle Blanche 70 hl/ha in Cognac
- Colombard represents 1% of Cognac plantings, used for acidity in distillation
- Cognac producers maintain 200 million liters of aging stock for blending
- Double distillation in Cognac produces "bonne chauffe" at 70-72% ABV
Production Statistics Interpretation
The Cognac industry is a precise dance of tradition and regulation, where thousands of patient winegrowers turn a vast sea of mostly Ugni Blanc grapes into a slightly smaller sea of wine, then a much smaller ocean of pure alcohol, all to lose a generous angel's share to the cellar air while waiting for the alchemy of oak to create a spirit that is, almost without exception, a master blender's artful deception of harmony.
Sources & References
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