Overview: The global cognac market has faced a significant decline in shipments and sales over the past year. According to data from the Bureau National Interprofessionnel du Cognac (BNIC), global shipments fell 15.1% year-on-year to 141 million bottles, while totalsales dropped 25.3% to €2.24 billion (approximately $2.6 billion) in 2025.
The Full Story
Global cognac sales took a hit in 2025 due to weakened demand across its two core markets – China and the United States. Data from BNIC show that major quality tiers recorded declines, with VS falling by 16.2%, VSOP dropping by 11.5%, and XO and above seeing the steepest contraction of 23.2%. This underscores pressure on both entry-level and premium segments.
The slowdown is not confined to China alone; North America also saw a significant decline in shipments, with volumes falling by 19.4% to 56.9 million bottles, while sales dropped by 34% to €737.3 million (around $860 million). BNIC attributed some of this downturn to trade policy, including the impact of tariffs on European wines and spirits.
Production & Profile
Cognac production involves a complex process that requires careful aging in oak barrels. The brandy is typically aged for between 2-50 years or more, depending on its quality tier. This prolonged maturation period allows the flavors to mature and develop, resulting in a rich, full-bodied spirit.
When it comes to tasting cognac, connoisseurs often describe it as smooth and silky with hints of fruitiness. The flavor profile can range from floral notes to oak undertones, depending on its age and quality tier.
Brand & Industry History
Cognac has a rich history dating back centuries when it was first produced in the Cognac region of France. Over time, cognac production expanded globally with countries like China becoming significant markets for this luxury spirit.
Today, major brands such as Rémy Martin and Hennessy dominate global cognac sales, accounting for more than 90% of Chinese market share. Despite efforts to expand into lower-priced segments and increase exports, the industry continues to grapple with challenges including weakening demand in its core markets.
What This Means
The decline in cognac shipments and sales has significant implications for both producers and consumers alike. With weakened demand driving down prices, smaller brands may struggle to remain competitive as market share shifts towards leading players like Hennessy and Rémy Martin.
This shift is likely driven by trade tensions, including the imposition of anti-dumping duties on imported cognac in China. The tariffs have added friction to an already challenging global demand scenario for this luxury spirit.
Consumer Takeaway
The decline in cognac sales may signal a more significant adjustment period for producers and industry participants. With shifting consumption patterns driving down prices, consumers can expect increased competition among brands as they adapt their strategies to suit changing market conditions.
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