Cognac market in the U.S. - Statistics & Facts
Cognac, like other segments of the alcoholic beverage market has had a tumultuous few years. It may have to weather some more storms yet. Although Cognac benefitted from the post-pandemic lockdown jubilation, rising cost of living has hampered consumer willingness to continue to spend on the upscale spirit. The United States was the second biggest importer of grape derived spirits like cognac in 2023, after China.
In 2025, the cognac industry may face yet another hurdle as the Trump administration has suggested that it may place tariffs on a wide range of foreign goods.
The cognac market
France was, not surprisingly, the leading exporter of grape derived spirits in 2023 with exports valued at 3.7 billion dollars, about three times more than the next largest exporter. Cognac constituted the bulk of French spirits exports. Hennessy is the leading cognac brand among major brands of cognac which report their volume, having sold 6.9 million cases worldwide in 2023. The other three major brands that engage in the production of cognac are Courvoisier, Martell, and Rémy Martin. Hennessy is also the most popular cognac brand in the United States where it accounts for a quarter of the market. Imports collapsed in 2023, a year after rapid inflation sent prices higher on many goods for consumers.U.S. consumption
As with import volume, U.S. consumption of brandy and cognac declined in 2023. Volume fell by an additional ten percent to 12.8 million cases, after having declined by 12.5 percent the previous year. Cognac has a reputation as a status symbol or an aspirational spirit and this is represented by its consumer base. When considering the income of cognac drinkers, the two largest groups were those with household income exceeding 75,000 U.S. dollars and households with income below 30,000. Consumers are less segregated by age, although Millennials constitute the largest segment of the cognac drinking population.In 2025, the cognac industry may face yet another hurdle as the Trump administration has suggested that it may place tariffs on a wide range of foreign goods.
