Cognac Market – Introduction
- Cognac is a type of high quality brandy that is distilled in the Cognac district of France. It contains 40 percent alcohol by volume and has a rich flavor, combining varying essences of fruits, nuts, honey, vanilla, caramel, and other spices. The cognac market is expected to grow at a fast pace with the increasing demand among consumers for premium alcoholic drinks.
Key Drivers of the Cognac Market
- The growing popularity among consumers and especially millennial for premium alcoholic drinks is the key driver of the cognac market.
- Cognac has some distinctive properties which help in the growth of the market. For instance, it has unique fruitful flavors unlike most of the other alcoholic drinks and also does not cause headache.
- Cognac being a premium drink is much better in quality than cheaper liquor because it has natural ingredients and is prepared by using a more careful distilling and aging process.
Factors Restraining the Global Cognac Market
- The COVID-19 pandemic caused market disturbances because of the threat of the virus and government regulations which affected the production, demand, and supply chain of cognac and hampered the growth of the market.
- Health conscious consumers do not buy brandy as its overconsumption can cause health problems such as increase in blood pressure and calories, and heart and muscle damage, which reduces the demand for cognac and affects its market growth.
- Cognac being a premium drink is considerably expensive, thus reducing its demand among consumers with average income and also it faces high threat from substitutes which are cheaper.
North America to Hold Leading Share of the Global Cognac Market
- In terms of geography, the global cognac market can be divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America
- Country and sub-region level analysis of North America features the U.S., Canada, and Rest of North America. Analysis and forecast of the cognac market in Europe includes markets across the U.K., Germany, France, and Rest of Europe. Similarly, Asia Pacific includes India, China, Japan, and Rest of Asia Pacific. Middle East & Africa includes the market analysis and forecast of GCC, South Africa, and Rest of Middle East & Africa. The cognac market in South America is segmented into Brazil and Rest of South America.
- North America dominated the global cognac market in 2020 attributed to the growing demand for premium alcohol drinks among consumers in the region. Growth in population and rise in disposable income of consumers has been driving the cognac market in North America, particularly in the US and Canada.
- The cognac market in North America is projected to expand at a rapid pace, followed by Asia Pacific, and Europe during the forecast period
Key Players Operating in the Cognac Market
The global cognac market is highly competitive, owing to the presence of several global and regional players. Major players are adopting various strategies such as regional expansion and product portfolio expansion to consolidate their position in the market. A few key players operating in the global cognac market are:
- Pernod Ricard
- Novovino Wine Company
- Branded Spirits USA
- Hennessy Company
- Maison Ferrand
- Kelt International
- Rémy Cointreau Group
- EDV SAS (Thomas Hine & Co.)
- Beam Suntory, Inc.
- Emperador Distillers, Inc.
Global Cognac Market: Research Scope
Global Cognac Market, by Product Type
- V.S (Very Special)
- V.P.O.S (Very Superior Pale Old)
- X.O (Extra Old)
Global Cognac Market, by End-user
Global Cognac Market, by Distribution Channel
- E-commerce Websites
- Company Owned Websites
- Specialty Store
Global Cognac Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
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The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
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The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.