LONDON--(BUSINESS WIRE)--Technavio’s latest report on the global brandy market provides an analysis of the key trends expected to impact the market through 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
The global brandy market is expected to exceed USD 63 billion by 2020, growing at a CAGR of almost 3%. According to Vijay Sarathi, lead analyst at Technavio for alcoholic beverages research, “The market has grown steadily due to strong demand in emerging countries such as India and the Philippines, where more young consumers are being added to the consumer base.”
The top four emerging trends influencing the global brandy market according to Technavio’s food and beverage research analysts are:
- Rising innovation in process and product
- Strategic acquisitions in industry
- Consumption shift to brandy
- Cognac cocktail trends
Rising innovation in process and product
Innovation and invention mark the global spirits market, especially the brandy segment. Manufacturers experiment with different flavors and blends to offer new varieties to consumers. For instance, Copper & Kings offers Craft Distilled American Apple Brandy which is aged in barrels and casks for a minimum of four years and is a blend of copper pot-distilled apple brandies. This manufacturer has also experimented with the concept of sonic aging. The vibrations induced by loud music cause the liquid to circulate within the barrel and are believed to result in stronger flavor profiles.
Big Bottom Distilling introduced two novel brandy flavors in 2015, which were apple and pear. The New York-based Constellation Brands gained considerable market share with the launch of its two new variants – Paul Masson Grande Amber Peach Brandy and Paul Masson Grande Amber Red Berry Brandy.
Strategic acquisitions in industry
Strategic acquisitions characterize the brandy market landscape globally. In 2013, Philippines-based Emperador Distillers, a subsidiary of the Alliance Global Group, acquired Spanish brandy maker Bodege San Bruno. In May 2014, Emperador completed the acquisition of UK-based Scotch whiskey maker Whyte & Mackay and its subsidiaries. The acquisition of Whyte & Mackay has greatly benefited the company's global profile.
In India, ABD has been attempting to acquire Tilaknagar, in order to increase market share in the brandy segment and gain access to the market in Southern India. Tilaknagar is a large player, with 55% of its revenue contributed by brandy in 2014.
Consumption shift to brandy
The demand for locally produced rum in large markets such as India and China is expected to decline and that for brandy and imported rums is likely to increase. Both countries are likely to register a drop in sales of rum to the tune of 153 million liters during the forecast period.
Globally, consumption volumes in the rum sector are likely to drop by a CAGR of over 1.7% during the forecast period thus leading to an increase in sales of Brandy. This is evident in the sales of millions of cases of leading brandy brands, McDowell's in India and Emperador in the Philippines.
Cognac cocktail trends
Brandy is not as popular as bourbon, tequila, or gin for use in cocktails. However, cognac, a variety of brandy, is increasingly being used in cocktails of late. Hennessy Black is marketed as a mixable brandy with a delicate taste and a higher alcohol content that lends itself to dilution. It also mixes well with ginger ale and other blends to create a range of unique cocktails.
“In France, cognac is considered a mature drink and is often preferred by status-conscious enthusiasts in other countries such as the US. This is contributing to the cocktail trend globally. The rising popularity of cocktails is likely to move consumers away from beer. The strong preference for cocktails is likely to boost the market for brandy as more companies are trying to popularize cognac-based cocktails,” says Vijay.
Some of the top vendors in the global brandy market, as researched by Technavio analysts are:
- Alliance Global Group
- Gruppo Campari
- Radico Khaitan
Browse Related Reports:
- Global Scotch Whisky Market 2015-2019
- Wine Market in Europe 2015-2019
- Vodka Market in Europe 2015-2019
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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