Brandy Market Report: Market Size & Forecast 2026

Brandy is a distilled spirit produced by fermenting and distilling wine or other fruit mashes, then typically aging in wooden casks, and it encompasses protected designations such as Cognac and Armagnac alongside broader grape and fruit brandies. Global revenue is estimated at approximately $26.0 billion in 2025, with multi-year forecasts pointing to continued mid-single-digit growth into the next decade. The United States is one of the largest single-country markets, with roughly 11 million 9-liter cases sold in 2025 generating about $2 billion in distiller revenue.

• •Estimated 2025 global market value: ~$26.0 billion, growing at ~5.5% CAGR.
• •Includes Cognac, Armagnac, Calvados, grape brandy, and fruit brandies.
• •U.S. volume: ~11 million 9-liter cases sold in 2025, worth ~$2 billion at the distiller level.

Premiumization is the single most powerful value driver, as consumers trade up to aged, single-vintage, and prestige expressions, particularly within Cognac. Expanding cocktail culture and the use of brandy in mixology have introduced the category to younger legal-age drinkers in North America, Europe, and parts of Asia. Rising disposable income in emerging markets such as China, India, and Southeast Asia is opening new volume pools, while tourism and gifting sustain demand for luxury aged stock.

• •Premium and aged Cognac/Brandy SKUs lifting average selling prices.
• •Cocktail culture and bartender-led visibility attracting younger consumers.
• •Middle-class growth in Asia driving incremental off-trade and on-trade volume.

By product type, the market is commonly split into grape brandy, Cognac, Armagnac, Calvados, and other fruit brandies, with Cognac typically commanding the highest per-liter value and grape brandy the largest volume share. By distribution, off-trade retail (supermarkets, liquor stores, e-commerce) accounts for the majority of sales, while on-trade channels such as bars, hotels, and restaurants are critical for premium positioning. Geographically, Western Europe (especially France) leads supply and value, while North America and Asia-Pacific represent the fastest-growing demand regions.

• •Product mix: grape brandy leads volume; Cognac leads value.
• •Distribution: off-trade dominant, with on-trade key for premium image.
• •Regional hotspots: Europe (supply anchor), North America and Asia-Pacific (demand growth).

What are the recent trends and outlook?

Looking ahead, the category is expected to keep growing at roughly 5-6% annually through the early 2030s, with value outpacing volume as premium share rises. Supply constraints on aged Cognac and Armagnac inventories are likely to support pricing power, while sustainability, organic certification, and lower-intervention production are emerging as differentiators. Digital channels, including DTC e-commerce and brand-led apps, are set to play a larger role in reaching premium consumers globally.

• •Forecast: continued ~5.5% annual growth through the early 2030s, value-led.
• •Aged-stock scarcity reinforcing premium pricing in Cognac and Armagnac.
• •Sustainability credentials and DTC digital sales gaining strategic importance.