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Cognac exports plunge in 2024 as China bites
Exports of Cognac fell by 10.6% in value last year due to a decline for VSOP and XO expressions in the wake of China’s anti-dumping investigation.
Trade body the Bureau National Interprofessionnel du Cognac (BNIC) noted that the value of Cognac shipments fell to €3 billion (US$3.1bn) in 2024, a double-digit drop on the previous year.
However, the volume of Cognac exported rose slightly by 0.4% in 2024 to 166 million bottles.
The BNIC mainly attributed the discrepancy between volume and value variation to a ‘significant’ rise in shipments of younger Cognacs (up by 13.7% across all countries), while VSOP and XO declined by 8.6% and 26.4%, respectively.
The BNIC said this was the result of China’s anti-dumping investigation targeting imports of Cognac from the EU. The investigation launched on 5 January 2024 and was due to last for one year. But last month, the investigation was extended until 5 April 2025.
Regional break down
In terms of regions, there was a mixed performance for Cognac exports in 2024.
In the Far East zone, which includes China – Cognac’s largest market by value and the second biggest in volume – the category’s exports declined by 16% in 2024, with 47.5m bottles shipped.
By value, Cognac shipments to the Far East plunged by 24.2% to €1.12bn (US$1.16bn) last year.
The BNIC said this decrease was largely due to the ‘sluggish recovery of the Chinese economy’, with a ‘significant’ decline seen from October to December.
Cognac exports to China plummeted by 23.8% in value and by 9.6% in volume last year.
Exports to Europe dropped by 3.8% in volume with 31.6m bottles shipped, but value rose by 4.4% to reach €461m (US$478.5m).
The BNIC highlighted a major increase in the UK, which maintained its position as the fifth-largest export market with 7.8m bottles, one spot ahead of France at 5.3m bottles.
North America performed better with a 15.3% increase in volume to 70.6m bottles, however value dipped by 1.5% to €1.12bn.
The continent’s volume gain was linked to the ‘positive trend of the American economy’ and stock reduction efforts made throughout the year.
South Africa shows promise
The BNIC also spotlighted South Africa as a growing market for Cognac, with a 26.7% increase in volume and a 24.1% rise in value last year, securing its position as the category’s fourth-biggest export market in 2024.
China’s investigation into brandy exports has had a major impact on some of the world’s biggest Cognac brands.
Rémy Cointreau’s Cognac sales between April and December 2024 plummeted by 19% after a ‘marked decline’ in China.
Sales of Pernod Ricard’s Martell Cognac plunged by 25% during the last half of 2024, with the brand contributing to around 90% of the total group net revenue decline.
The wine and spirits arm of LVMH, Moët Hennessy, cited Cognac as a main factor for the division’s 8% sales drop in the group’s 2024 full year. Spirits sales decreased by 14%.
In 2023, exports of French spirits declined by double digits in both volume and value due to destocking by wholesalers in the US. Cognac was down by 21.1% in volume and by 14.8% in value in 2023.
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