Brandy is obtained by distillation of fermented grape juice and is usually matured in oakwood casks for a minimum of 3 years. Brandy matured in black oakwood casks is amber in color. Brandy typically contains 35% to 60% alcohol by volume and is generally consumed after dinner as a digestif.
Increasing demand for alcoholic beverages among adults and young population worldwide is driving the global brandy market growth during the forecast period. According to The National Institute on Alcohol Abuse and Alcoholism (NIAAA), in the U.S., total alcohol consumption per person/year was pegged at 8.82 litters in 2017.
Furthermore, rising disposable income coupled with increasing consumption of alcohol is boosting growth of the global brandy market. According to Trading Economics Statistics on United States Disposable Personal Income, the disposable personal income in the U.S. averaged US$ 5,200.2 billion in 1959, which increased to US$ 15,742.81 billion in November 2018.
Among distribution channel, specialty stores segment is expected to account for largest market share in the global brandy market during the forecast period. Key players operating in distilled spirits market are focused on new product launches in order to strengthen their market presence. Moreover, owing to shift in consumer preference towards premium-priced spirits, key players are focused on developing premium product range. For instance, in February 2019, Copper & Kings American Brandy Co., based in Louisville, announced launch of its two latest, pure copper pot-distilled American luxury gins. These are brandy-based gins, namely 'The History of Lovers' and 'The Ninth'. In addition to this, rising number of distribution channels such as outlets at airports and online channels is fuelling demand for alcoholic beverages, which is expected to boost the global brandy market growth during the forecast period.
Stringent government regulations in several economies such as ban on advertisement of alcoholic beverages in public places, and limited and permissible consumption of these products are factors hindering growth of the brandy market. For instance, 'the Federal Uniform Drinking Age Act of 1984' established the minimum legal drinking age as 21 years in the U.S.; however, there are some exceptions in some states that allow individuals under the age of 21 to drink alcohol with parents, and certain family members. Rising awareness campaigns with regard to harmful effects of alcohol consumption across the globe is expected to hinder the market growth during the forecast period. For instance, in 2016, Alcohol Awareness Week was conducted by Alcohol Change U.K., which is a limited company registered in England and Wales.
Key players in the brandy market include United Spirits Limited, Pernod Ricard, Campari Group, Radico Khaitan, Hennessy, Tilaknagar Industries, Great Lakes Distillery LLC, Weissbrand Distilling Co., Caddell & Williams, Stark Spirits Distillery, and others.
On the basis of product type, the global brandy market is segmented into:
- Peach Brandy
- Fruit Brandy
- Dried Fruit Brandy
- Pomace Brandy
On the basis of distribution channel, the global brandy market is segmented into:
- Hypermarkets and Supermarkets
- Specialty Stores
- Drug Stores
- Online Channel
On the basis of region, the global brandy market is segmented into:
- North America
- Latin America
- Rest of Europe
- Asia Pacific
- New Zealand
- Middle East
- Rest of Middle East
- Northern Africa
- South Africa
- Central Africa