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Brandy Market Size to Grow at a CAGR of 12.4% During the Forecast Period 2021-2026

(Food-Beverage-News.Com, January 03, 2022 ) Brandy Market is set to grow at a CAGR of 12.4% during the forecast period of 2021-2026. The demand constituted by brandy industry accumulated to $1721.1 Million in 2020. Brandy is obtained by distilling wine, fruit juices and mashes that have a minimum alcohol content of 35% and a maximum of 60%. The manufacturers can provide different flavors like caramel and gingerly, by ageing them for 3-20 years in an oak barrel. Brandy offers certain health benefits if ingested in the right proportion. Par example, brandy can improve immunity, and reduce the skin ageing owing to the presence of antioxidant and polyphenolic compounds. Owing to its anti-bacterial properties, brandy is often given to suppress cough and cold. It is also used by the restaurants as a digestif, distilled wine, post meal owing to the presence of compounds which improves digestion. The brandy market share is set to reign, owing to its cross-industrial use in the forecast period of 2021-2026.

Brandy Market Analysis- By Distribution Channel

By distribution, the brandy market can be segmented into two subcategories namely, off-trade which includes supermarkets, hypermarkets, online stores and discount stores; while on-trade includes restaurants, liquor stores and bars. The demand from the off-trade segment dominated the overall demand of the brandy market in the year 2020, owing to various restrictions owing to COVID-19. Owing to the opening up of economies in the forecast period of 2021-2026, the fastest-growing segment would be “on trade”, which will grow at a CAGR of 12.8%. The reason for the surge in demand during the forecast period is owing to the fact that millennials like to socially interact and try out the different variety of brandy cocktails available in restaurants and bars. Another reason for the surge in this segment is owing to the adoption of brandy in various gourmet food, and exquisite delicacies, which makes the future of the brandy market optimistic.

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Brandy Market Analysis- By Product Type

The brandy market is segmented into four sub-categories on the lines of product types, namely, Cognac, Armagnac, Fruit Brandy and others. The Cognac brandy dominated the market in the year 2020 owing to its exquisite taste. The reason for this surge is owing to the fact that Cognac represents the top line of the brandy market, which is distilled twice in copper pot stills and then is left to age in French oak barrels. The resultant taste is of fine viscosity and texture and also the different flavours push the younger generation to drive the Cognac market share.

The demand for the forecast period of 2021-2026, suggests that Cognac will grow at the fastest rate of CAGR 12.6%. The reason for the associated demand is fueled by cognac taste, mouthfeel and flavor which differentiates itself from other premium drinks available.

Brandy Market- By Geography

By Geography, North America dominated the overall segment with a share of 36.1% in the year 2020. The reason for the surge in demand is associated with the rise in distillery and craft drinks in the millennial population. The surge is also associated with the practice of fair trade, and the tendency of the youth to purchase beverages with organic ingredients.

North America is set to dominate the market at a fastest growing CAGR during the forecast period of 2021-2026, owing to an uprising demand for brandy in beverages and confectionaries. The demand is also associated owing to an increase in consumption of premium and craft spirits, and also owing to the rising disposable income of the youth.

Brandy Market Drivers

Lower chances of developing cardiovascular diseases

The chances of developing blood pressure, high cholesterol and blocked arteries reduce by 18% if brandy is taken in a regulated amount. The reason for this is owed to the presence of polyphenolic compounds which in turn reduces the inflammation of arteries. The brandy contains no added sugar and is extremely low in carbohydrates that substantiate the risk of having diabetes and other heart-related ailments.

Boosts Immunogenicity

Since ancient times brandy has been used to treat cough, cold and sore throat. The presence of anti-bacterial compounds suffices the role of brandy as an associated medicine. The warmness present in the brandy is an additional advantage of boosting immunity.

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Brandy Market Challenges

Excess amounts can cause liver damage

Any alcohol taken in abnormal quantities can disturb a personal central nervous system, which includes the chances of getting hypoglycaemic, and can also lead to liver damage.

Brandy Market Landscape

Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the Brandy Market. Brandy Market top 10 companies include, Courvoisier (Beam Suntory Inc.), Diageo Plc, E. & J. Gallo Winery, Emperador (Alliance Global Group Inc.), F. Korbel & Bros., Martell, Speciality Brands Ltd., Rémy Cointreau, Constellation Brands and Copper and Kings American Brandy Limited.


In September 2020, Constellation Brands acquired Copper and Kings American Brandy Limited, to acquire a larger market share and take advantage of the market penetration of the latter brand. Through this acquisition, Constellation Brands plans to expand its portfolio across premium products and brands. It would also help Constellation Brand to bridge the gap between premium craft drinks and craft bourbon.

Key Takeaways

North America dominated the brandy industry in the year 2020, owing to a surge in demand in the confectionary and beverages, and the off-trade businesses accommodated the demand during lockdowns.

Increasing preference of the millennial generation for trying different varieties via cocktails will drive the brandy industry forward.

Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be present in Brandy Market Report.

Companies operating in the brandy industry will have to face stiff competition from different companies within region and across the globe as well.

COVID-19 lockdowns have prevented the bars and clubs to operate as usual, hindering the sale of brandy and other products via cocktails and neat.

Related Reports:

A. Global Champagne Market

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Venkat Reddy

(+1) 970-236-3677

Source: EmailWire.Com
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