Dublin, Dec. 20, 2023 (GLOBE NEWSWIRE) -- The "Brandy Market Report by Product Type (Grape Brandy, Cognac, Armagnac, Fruit Brandy, and Others), Price (Value, High-End Premium, Super Premium, Premium), Distribution Channel (Supermarkets and Hypermarkets, Exclusive Stores, On-Trade, and Others), and Region 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The global brandy market size reached US$ 25 Billion in 2022 and is forecast to reach US$ 33.86 Billion by 2028, exhibiting a growth rate (CAGR) of 5.2% during 2022-2028.
The increasing consumer preference for premium and aged spirits, rising middle class and an increasingly younger population, innovative marketing campaign by manufacturers, expansion of e-commerce platforms, and shifting trend towards sustainable practices are some of the major factors propelling the market.
Brandy Market Trends & Drivers:
Increasing consumer preference for premium and aged spirits
The burgeoning consumer demand for premium and aged spirits is propelling the brandy market. This shift towards premium products reflects a broader lifestyle trend, where consumers are becoming increasingly educated about what they consume and are willing to invest in superior-quality beverages that offer a unique, enriching experience.
Furthermore, distilleries are responding to these demands by producing limited-edition releases, single-barrel selections, and aged variants that command higher price points and often generate a cult following. Besides this, the aging process itself, often carried out in oak barrels, imbues the brandy with complex flavors and a smooth finish, qualities that are highly valued by connoisseurs. Moreover, the premium segment's growth is not just about the beverage itself but is also tied to the allure of exclusivity and the status symbol associated with owning or consuming high-end brandy.
The rising middle class and an increasingly younger population
The rising middle class and an increasingly younger population are serving as key growth catalysts in the brandy industry. The expansion of the middle class translates into higher disposable incomes and greater purchasing power, allowing individuals to explore and invest in aspirational products, including premium spirits like brandy. Along with this, the younger population brings new energy and perspectives into brand preferences and consumption habits.
Younger consumers are known for their adventurous palates and willingness to experiment, qualities that make them more open to trying different types of brandy, whether domestic or imported. Furthermore, this age group is also highly influenced by social media, where trends can be set or disrupted overnight. Companies are capitalizing on this by using online platforms to engage with younger consumers, offering them a more personalized brand experience.
Innovative marketing campaigns by manufacturers
Innovative marketing campaigns, celebrity endorsements, and strategic product placements are substantial factors in the growth of the brandy market. Brandy manufacturers are investing heavily in smart, creative campaigns that tell compelling stories, aiming to resonate with target demographics. This includes everything from visually stunning advertisements to interactive digital experiences. Furthermore, celebrity endorsements add another layer of appeal, providing a familiar face that can vouch for the product's quality and desirability.
By aligning the brand with a person who embodies the traits that the company wants to project, manufacturers can more effectively capture consumer attention and loyalty. Moreover, product placements in popular films, television (TV) shows, and music videos offer yet another avenue to reach a broad audience. This not only enhances brand visibility but also ingrains it into popular culture, creating multiple touchpoints for consumer engagement.
Brandy Industry Segmentation:
The report provides an analysis of the key trends in each segment of the global brandy market report, along with forecasts at the global, regional, and country levels for 2023-2028. The report has categorized the market based on product type, price, and distribution channel.
Breakup by Product Type:
Cognac is dominating the market as it benefits from a strict appellation system that mandates the spirit to be produced in the Cognac region of France, following precise guidelines. This geographical indication adds an element of exclusivity and ensures a high level of quality. Furthermore, the marketing and branding efforts behind Cognac have successfully positioned it as a luxurious and aspirational product. In line with this, the use of high-profile celebrity endorsements and strategic product placements in films and popular culture further solidifies its upscale image. Additionally, the aging process for Cognac often surpasses that of other brandies, resulting in a more complex and desirable flavor profile. Moreover, consumers associate this longer maturation time with superior quality and are often willing to pay a premium for aged Cognacs.
Breakup by Price:
Premium brandy is associated with high quality, craftsmanship, and a rich heritage. In addition, consumers are willing to pay a higher price for products they perceive as superior. Furthermore, the brandy market often targets an affluent consumer base that is less price-sensitive and more willing to invest in premium products. Besides this, premium brandy labels are produced in limited numbers, creating a sense of exclusivity, which justifies a higher price point.
Super-premium brandy utilizes aged casks, superior raw materials, and refined distillation techniques, underscoring the perceived value and quality of the product. Furthermore, it cultivates an aura of exclusivity, attracting consumers who are seeking unique, limited-edition products. Besides this, super-premium brandy is considered a status symbol, which drives sales in societies where conspicuous consumption and brand prestige hold significant weight.
Breakup by Distribution Channel:
On-trade venues, such as bars, restaurants, and hotels offer consumers an elevated experience, including expertly made cocktails and the option to sample various brands, which aids in boosting sales. Furthermore, they have staff that are knowledgeable about the products they serve, including brandy, and their recommendations can significantly influence consumer choices. Additionally, the on-trade channels allow brands to strategically position themselves, which aids in gaining prominence and acceptance among consumers. Besides this, they offer consumers the opportunity to try brandy without committing to purchasing an entire bottle, which often leads to better-informed choices and higher sales over time. Moreover, brands often partner with on-trade venues for special events, tastings, or promotions, which not only boosts sales but also provides visibility and a platform for consumer engagement.
Competitive Landscape:
The report has provided a comprehensive analysis of the competitive landscape in the market including:
- Courvoisier Cognac
- Diageo
- E. & J. Gallo Winery
- Emperador
- F. Korbel & Bros.
- Martell Speciality Brands
- Remy Cointreau
- Thomas HINE
- Yantai Changyu Pioneer Wine
Key Topics Covered:
1 Preface
2 Scope and Methodology
3 Executive Summary
4 Introduction
5 Global Brandy Market
5.1 Market Overview
5.2 Market Performance
5.3 Impact of COVID-19
5.4 Market Forecast
6 Market Breakup by Product Type
6.1 Grape Brandy
6.2 Cognac
6.3 Armagnac
6.4 Fruit Brandy
7 Market Breakup by Price
7.1 Value
7.2 High-End Premium
7.3 Super Premium
7.4 Premium
8 Market Breakup by Distribution Channel
8.1 Supermarkets and Hypermarkets
8.2 Exclusive Stores
8.3 On-Trade
9 Market Breakup by Region
10 SWOT Analysis
11 Value Chain Analysis
12 Porters Five Forces Analysis
13 Price Analysis
14 Competitive Landscape
For more information about this report visit https://www.researchandmarkets.com/r/9ddcq9
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