Sectors & markets

Cognac Reinvents Itself Amid Crisis to Win Back New Markets.

Cognac is experiencing an unprecedented crisis, with global shipments down 15.1% in 2025 (141 million bottles), and value falling 25.3% to EUR 2.24 billion, according to data from the Bureau National Interprofessionnel du Cognac (BNIC). The VS, VSOP, and XO segments have all been affected, reflecting increased consumer price sensitivity.

This decline is partly explained by the 32.2% anti-dumping duties imposed by China since July 2025 (Cognac's 2nd largest market), in retaliation for European tariffs on Chinese electric vehicles, as well as by the 15% US tariffs combined with an unfavorable exchange rate, driving price increases of around 30% across the Atlantic. The US, Canadian, and Mexican markets show a decline of 19.4% in volume and 34% in value, while Europe is down 10.9% in volume.

Faced with this situation, major houses are revising their strategies. Rémy Martin has launched Rémy V, a new white spirit distilled from French grapes aimed at young American consumers. Martell is focusing on diversification markets — South Africa, Nigeria, Thailand, Kenya — and has identified Singapore, Taiwan, and Indonesia as growth drivers in Asia, buoyed by regional appetite for premium spirits. Delamain, for its part, has launched Folio Natura, a more accessible Cognac priced at EUR 60, compared to EUR 145 for its current entry-level offering.

Cyril Camus, CEO of the eponymous house, speaks of a deep restructuring but already reports two consecutive quarters of growth following two years of double-digit decline.

For French producers, this repositioning phase confirms the strategic importance of Asian markets outside China, with Singapore leading the way, as growth drivers and innovation testbeds to win back a younger, more value-conscious clientele.

Source: "Claire Dodd, 30/06/2026, The Spirits Business"
URL Link: https://www.thespiritsbusiness.com/2026/06/cognac-regroups-to-recover-from-category-crash/