World Spirits Report 2025: Cognac & brandy
Trade tariffs, anti-dumping duties and geopolitical tensions have made 2025 a bruising year for Cognac, with sales forecast to fall by both value and volume.
Dare we say that 2025 could have been a lot worse for Cognac and brandy? In last year’s World Spirits Report, we were bracing for the impact of China’s anti-dumping investigation. Then, in August this year, China’s Ministry of Commerce finalised a 32.2% duty on EU brandy. However, there were exceptions made for some Cognac producers, which signed ‘minimum price commitments’ instead.
At a time when the sector should have been recovering from the China blow, it suffered yet another defeat – tariffs from the US. “You’re talking here about the number-two and number-one markets for Cognac,” explains Alexandre Gabriel, owner and master blender of Maison Ferrand. He also adds that Russia was historically “very fond” of Cognac – which is another market “that’s basically gone” due to geopolitics.
In Euromonitor’s forecasts for 2025 and 2026, Cognac is the only spirits category predicted to decline by both value and volume. In terms of volume, Cognac is expected to fall by 5.9% in 2025, and by another 3.9% the year after. This would put the category just ahead of 11 million nine-litre case sales by 2026, compared with its 2024 total of 12.2m.
By value, Cognac is anticipated to be worth US$19.79 billion in 2025, a 4.8% drop on 2024. Another 1.1% drop is expected to take place in 2026.
Gabriel thinks the journey to recovery is likely to take longer than 2026. “A lot is going to depend on where the economy in the US goes,” he explains. “But I really believe in Cognac. I think it’s an eternal spirit.”
Despite its similarities, brandy is another story – as the data from Euromonitor shows. The category’s volume sales are anticipated to rise by 1% this year, to a total of 166.9m cases, with a further growth of 1.2% predicted for 2026. Value is expected to increase by 1.4% to US$22.7bn in 2025. Euromonitor predicts a 5.1% rise in value for 2026 – suggesting it sees the category as one that is maturing and premiumising.
Christian Visalli, spirits global managing director at Familia Torres, says there is no doubt that brandy faces challenges, as does the rest of the spirits industry. “Our efforts are focused on elevating the category awareness, introducing the brand in the cocktail scene to engage younger consumers who might be discovering brandy for the first time,” he says. “Consumers appreciate craftsmanship, innovation and authentic products with a clear origin.”
Whether brandy is benefiting from Cognac’s downfall is another question. “The issues [with Cognac] do open more opportunities, but the narrative is still very different,” says Burnt Faith’s founder Simon Wright. “Where Cognac has put a lot of its attention on luxury and ultra-premium, for brandy it’s more about innovation and flavour innovation. That’s where we can play and appeal, and not be a like-for-like replacement.”
Brands to watch in 2026
Rémy Martin
Rémy Cointreau expected a huge hit from both China and US tariffs – but it actually downgraded its expectations twice this year. Meanwhile, Rémy Martin has appointed a new CEO, and recently partnered with rugby union club Barbarian FC in a particularly unique move for a Cognac brand.
Aznauri
While Ukrainian brand Aznauri is best known in its home country, where it has a 41% market share, the brand has huge plans for a global rollout. Sadly, its distillery in Odessa was bombed in September this year – but given the brand’s resilient spirit, we anticipate the setback will only spur it to greater heights in 2026.
Copper & Kings
A few years ago, Copper & Kings was pioneering the American brandy category – then it seemed to go quiet. Constellation Brands offloaded the label in August, and its new owner, Kentucky-based Bourdon Spirits Company, came straight out to bat with a refreshed portfolio. It seems Copper & Kings could finally be back to finish what it started.
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