Global exports still declining, with the mid-to-high-end market more affected
According to recent data from the French customs, global exports of Cognac in the first half of 2026 totaled approximately 19.57 million liters (based on 100% pure alcohol, equivalent to about 69.9 million bottles of 700ml, 40% ABV), marking a slight year-on-year decrease of about 1.18%. Total export value amounted to approximately 1.059 billion euros (around 8.236 billion yuan), a year-on-year decline of about 10.26%. The average export price dropped from approximately 59.56 euros per liter in the same period last year to 54.08 euros per liter, a decrease of about 9.19%.
For 2L and below standard packaging, export volume and value were 18.92 million liters and 1.035 billion euros, respectively, down 1.86% and 10.27% year-on-year. For 2L and above bulk packaging, volume and value were 649,400 liters and 23.2 million euros, up 24.11% and down 9.85% year-on-year, respectively. Despite some leading spirits companies reporting growth in their Cognac categories in recent earnings reports, such as Rémy Cointreau's first-quarter organic sales growth of 7.7% for Cognac in fiscal 2026/27 and LVMH's Hennessy volume growth of 3.5% in the first half, the overall Cognac market remains in a mild contraction phase. The decline in export value significantly outpacing the decline in volume reflects continued weakness in demand for high-end products and a shift in product mix downward.
Top three destinations: US still sees double declines in volume and value, Singapore surges
As the world's largest export destination for Cognac, the US market failed to maintain its previous relative stability in the first half of 2026. For the most core 2L and below packaging, exports to the US amounted to approximately 7.69 million liters (about 27.47 million bottles) and 324 million euros, with volume down about 14.3% year-on-year and value down sharply by about 29.9%. The average export price fell from 51.54 euros per liter last year to 42.15 euros per liter, a drop of about 18.2%. Rémy Cointreau noted in its first-quarter fiscal 2026/27 report that the Americas experienced a slight decline, mainly due to continued destocking in Canada and high base effects in Latin America, while the US market showed solid sales growth. However, broader export data indicates that the US market began to see significant year-on-year declines in the second half of 2026, suggesting that brands like Hennessy continue to face a sluggish market under trade and tariff pressures from the US.
The third-largest destination, Singapore, saw significant growth in both volume and value in the first half of 2026. For 2L and below packaging, exports to Singapore were approximately 2.49 million liters (about 8.9 million bottles) and 182 million euros, with volume surging 82.0% year-on-year and value up 35.2%. The average export price dropped from 98.22 euros per liter last year to 72.94 euros per liter, a decline of about 25.7%. In other key markets, South Africa continued its growth trend from 2025, but with a significantly narrowed pace. For 2L and below packaging, exports to South Africa were about 1.4 million liters (about 4.99 million bottles) and 71.57 million euros, with volume and value up 5.1% and 7.1% year-on-year, respectively, while the average price edged up 1.9% to 51.27 euros per liter from 50.31 euros. In Panama, volume increased but value decreased. For 2L and below packaging, exports to Panama were about 490,000 liters and 34.58 million euros, with volume up 21.0% year-on-year but value down 15.7%, and the average price falling 30.4% to 70.04 euros per liter from 100.58 euros, further confirming weak demand for high-end products.
China market: Decline narrows, average price rises against the trend, other Greater China regions show mixed results
As the world's second-largest export destination for Cognac, the Chinese mainland market saw a significant narrowing of its decline in the first half of 2026. For 2L and below packaging, exports to China were approximately 2.51 million liters (about 8.96 million bottles) and 187 million euros, with volume down about 13.1% year-on-year and value down about 8.8%. The average export price rose 4.9% to 74.70 euros per liter from 71.22 euros last year. One industry insider noted that the price increase may be closely related to the minimum price requirements for imported products under price commitment terms. Compared to the 20% declines in both volume and value for the Chinese market in the first half of 2025, the first half of 2026 saw a substantial narrowing of the drop. However, while China's customs data shows strong growth in French brandy imports in the first half of 2026, French customs data specifically for Cognac exports to China still shows a decline, albeit with a significantly slowed pace.
For 2L and above bulk packaging, the Chinese mainland remains the largest global destination, accounting for over one-third of global volume and value. In the first half of 2026, exports were about 185,000 liters and 8.3 million euros, with volume up 38.8% year-on-year but value down 5.8%, and the average price plunging 32.2% to 44.93 euros per liter from 66.23 euros. The sharp drop in the average price of bulk products may indicate that demand for gifting and collection is recovering but remains weak, leading to a clear downward shift in product structure. Other Greater China markets showed mixed results. Taiwan's exports for 2L and below packaging saw volume up 19.9% but value down 23.5%. Hong Kong's volume fell 30.8% but value rose 23.4%, with the average price skyrocketing 78.23% to 75.46 euros per liter from 42.34 euros. Macau's volume and value grew 69.4% and 14.1%, respectively, but the average price fell 32.6% to 80.51 euros per liter from 119.46 euros.
Global average prices continue to fall, trend toward mass-market product mix persists
Globally, the continuous decline in Cognac's average export price in the first half of 2026 reveals deep structural changes in the industry. Although leading companies like Rémy Cointreau and LVMH achieved growth in their Cognac business this year, overall Cognac exports are still declining, and the value of products is increasingly shifting toward the mass market. The global average export price for 2L and below packaging fell about 8.6% to 54.70 euros per liter from 59.85 euros last year. For 2L and above bulk packaging, the average price dropped about 27.36% to 35.72 euros per liter from 49.18 euros. The larger decline in bulk product prices further confirms the global contraction in demand for high-end Cognac products. This trend aligns with ongoing capacity adjustments in the Cognac region. Facing sustained market pressure, the French National Cognac Industry Board (BNIC) has applied for 40 million euros in aid from the EU and French government to permanently uproot 3,500 to 4,000 hectares of vineyards. Meanwhile, leading brands like Hennessy and Rémy Martin are countering traditional market weakness through product innovation, such as ready-to-drink cocktails, and expansion into emerging markets. Data from the first half of 2026 shows that the decline in global Cognac exports has significantly narrowed compared to 2025, but the ongoing drop in average export prices indicates that the industry's recovery is still in a phase of "trading price for volume."
Comments