Cognac export revenues slid more than 10% in 2024, primarily due to the challenges the sector is facing in China, trade-body figures show.
Exports to China – said to be the biggest market for Cognac by value and the second-largest by volume – declined as the local economy struggled and Beijing imposed anti-dumping measures on European brandy exports.
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According to trade association the BNIC, global shipments inched up 0.4% in volume terms to 166 million bottles.
However, the value of these exports dropped 10.6% to “nearly” €3bn, the BNIC said.
The discrepancy between volume and value was attributed to a 13.7% rise in shipments of younger Cognacs. The shipments of VSOP and XO declined by 8.6% and 26.4% respectively.
The downturn in the aged Cognacs came amid Beijing’s decision to introduce anti-dumping measures on brandy from the EU.
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By GlobalDataIn 2024, exports to China totalled 28.97m bottles, down 9.6%. Value sales decreased 23.8%.
In the NAFTA region, Cognac shipments grew by 15.3% in volume to 70.6m bottles, Value sales fell 1.5% to €1.12bn.
Cognac shipments to Europe fell 3.8% to 31.6m bottles. Value sales, however, rose 4.4% to €461m.
The BNIC said Cognac exporters saw “a strong increase” in sales to the UK, the fifth-largest export market for the region.
