Asia-Pacific Brandy Market Outlook, 2031

In the Asia-Pacific region, rising disposable income has led to increased consumer spending on luxury goods, including premium spirits such as brandy. As consumers have more discretionary income, they are willing to explore and invest in higher-end brandy products. Furthermore, brandy distilleries in the Asia-Pacific region have recognised the potential of tourism and have started offering visitor experiences. Distillery tours, tastings, and educational programmes allow consumers to engage with the brandy-making process, learn about the heritage of the brands, and develop a deeper appreciation for the spirits. Brandy tourism contributes to the overall growth of the brandy market in the region. Moreover, brandy is a popular choice for gifting in many Asian countries. It is often presented as a premium gift for business partners, family members, and friends during festive occasions or special events. The act of gifting brandy represents respect, gratitude, and good wishes. Moreover, similar to the perception of aged spirits in other regions, there is a reverence for older and well-aged brandies in the Asia-Pacific region. Older brandies are associated with superior quality, depth of flavour, and craftsmanship. Brandy enthusiasts often seek out rare and aged expressions as a mark of sophistication. In addition, in traditional medicine practises, brandy is sometimes believed to have health benefits. It is thought to aid digestion, promote circulation, and alleviate certain ailments. While these beliefs are rooted in traditional knowledge, it's important to note that brandy should always be consumed in moderation.

According to the research report, “Asia-Pacific Brandy Market Outlook, 2031” published by Bonafide Research, the market is expected to grow with 7.43% CAGR by 2026-31. In some Asian cultures, brandy is combined with tea to create a unique beverage. This blend, often referred to as ""brandy tea,"" involves adding a splash of brandy to hot tea. It is believed to enhance the flavour and provide a soothing and warming effect. Furthermore, in China, the most consumed spirit is baijiu, a traditional Chinese liquor. Interestingly, some Chinese distilleries produce brandy by blending baijiu with grape brandy. This unique blend, known as ""Wuliangye brandy,"" combines the flavours of the two spirits and caters to the preferences of Chinese consumers. Moreover, in Taiwan, there is a unique culture of enjoying brandy alongside tea. This practise involves sipping brandy between sips of tea, allowing the flavours to interact and create a harmonious taste experience. It is considered a refined way to appreciate both beverages and is popular among tea enthusiasts. In addition, Asia Pacific is known for its production of fruit-based brandies. Countries like South Korea, Taiwan, and Japan produce brandies made from fruits such as plums, apricots, and peaches. These fruit brandies offer distinct flavours and are enjoyed locally.

Market Drivers

• Rising disposable incomes and premium gifting culture: One of the strongest growth drivers in the APAC brandy market is the rapid expansion of the middle and upper-income population across countries such as China, India, South Korea, Vietnam, and the Philippines. As purchasing power increases, consumers are shifting from low-cost local alcohol to premium and imported spirits, with brandy—particularly cognac—seen as a symbol of sophistication and status. Brandy is widely used in gifting, festivals, weddings, and business hospitality, making it a preferred choice during celebratory occasions. This cultural association with luxury consumption significantly boosts both volume and premium sales.
• Expansion of urban nightlife and hospitality sector: The rapid growth of bars, clubs, hotels, luxury lounges, and international restaurants across major APAC cities is increasing brandy consumption in on-trade channels. Tourism growth and westernized drinking habits are further expanding cocktail culture, where brandy is increasingly used in modern mixes. This strong hospitality ecosystem continues to drive brand discovery and higher consumption frequency.

Market Challenges

• High price sensitivity in developing economies: Despite premium growth, large portions of APAC consumers remain highly price-conscious, particularly in emerging markets such as India, Indonesia, and parts of Southeast Asia. High import duties and alcohol taxes significantly increase the retail prices of premium brandies, limiting mass adoption and slowing volume growth outside major urban centers.
• Complex regulatory landscape: Alcohol regulations vary widely across APAC countries, including restrictions on advertising, licensing, pricing controls, and distribution systems. These inconsistencies create operational complexity for international brands and often limit market penetration and promotional activities.

Market Trends

• Rapid premiumization toward cognac and luxury spirits: Consumers across APAC are increasingly trading up to aged and high-end brandies, driven by lifestyle aspirations and global luxury branding. Limited-edition releases, gift packs, and luxury packaging are gaining strong traction, particularly in China and South Korea.
• Growing interest in flavored and smoother brandies: Younger drinkers are increasingly drawn to flavored and fruit-infused brandies that offer lighter, sweeter, and more approachable taste profiles. These products are popular in cocktails and casual social settings, expanding brandy’s consumer base.

Cognac leads in APAC because it is widely perceived as a luxury status spirit strongly associated with celebration, gifting, and premium lifestyle.

Cognac dominates the APAC brandy market largely due to its powerful luxury image and deep cultural association with prestige and high social status. In countries such as China, India, South Korea, Vietnam, and the Philippines, imported cognac is often viewed as a premium gift for weddings, festivals, business hospitality, and important celebrations. Its French origin, strict production standards, long aging process, and premium branding have positioned cognac as a symbol of refinement and success. Rising disposable incomes and the rapid expansion of the middle and upper-class population across APAC have significantly increased consumer willingness to spend on luxury spirits. Global cognac houses have invested heavily in marketing, celebrity endorsements, luxury packaging, and exclusive editions tailored to Asian markets, strengthening brand loyalty and aspiration value. Cognac’s smooth taste profile also appeals to both experienced spirit drinkers and newer consumers seeking high-quality alcohol experiences. In addition, premium bars, hotels, and duty-free retail across major APAC cities prominently feature cognac, further boosting visibility and accessibility. This strong combination of cultural prestige, premium positioning, growing purchasing power, and aggressive brand expansion continues to make cognac the leading segment within the APAC brandy industry.

The premium price segment leads because it delivers aspirational quality while remaining affordable for a rapidly expanding middle-class population.

The USD 16–35 per bottle premium brandy segment dominates the APAC market as it perfectly aligns with the region’s rising middle-class purchasing power and evolving lifestyle aspirations. Consumers across APAC are increasingly trading up from economy spirits toward higher-quality alcohol that offers smoother taste, better aging, and stronger brand reputation without the high cost of ultra-luxury bottles. This price range allows producers to offer aged blends, refined production processes, and premium packaging that appeals to both everyday consumers and gifting occasions. In fast-growing economies such as China, India, Indonesia, and Vietnam, this segment represents an achievable luxury, enabling frequent purchases for social gatherings, festivals, and personal enjoyment. Bars and restaurants also favor premium brandies within this price bracket for cocktail making and house pours, as they balance quality and cost efficiency. Major global spirit brands concentrate innovation, promotions, and distribution in this segment, increasing its shelf presence and consumer visibility. As income levels continue to rise across APAC, the premium tier is benefiting most from consumer trading-up behavior, making it the leading revenue contributor in the regional brandy market.

Off-trade channels lead because consumers prefer buying brandy for home consumption due to affordability, convenience, and wide product availability.

Off-trade distribution channels such as supermarkets, liquor stores, specialty alcohol retailers, and duty-free shops dominate the APAC brandy market as home consumption remains the primary drinking occasion across the region. Purchasing brandy through retail outlets is significantly more affordable than consuming it in bars and hotels, which often carry high markups. Consumers also benefit from a broader selection of brands, flavors, price points, and promotional offers in retail environments. The growing trend of home celebrations, family gatherings, and social drinking has further strengthened retail alcohol sales. Expansion of modern retail infrastructure in emerging APAC economies is improving access to branded spirits even in smaller cities and towns. Additionally, duty-free outlets in major travel hubs such as Singapore, Dubai (serving APAC travelers), Hong Kong, and Seoul play a major role in premium brandy purchases for gifting and personal use. The combination of price advantage, convenience, increasing retail penetration, and cultural preference for home consumption continues to make off-trade the dominant sales channel in the APAC brandy industry.

APAC leads the global brandy industry due to its massive consumer base, rapid income growth, and strong cultural preference for premium spirits.

The Asia-Pacific region represents the largest and fastest-growing market for brandy globally, driven by its huge population, accelerating economic development, and shifting consumer lifestyles. Countries such as China and India alone account for billions of consumers with rising disposable incomes and increasing exposure to global drinking trends. Brandy—particularly cognac—holds strong cultural significance in many APAC markets, often associated with prestige, celebration, and social success. Rapid urbanization has expanded nightlife, hospitality, and premium dining sectors, boosting both on-trade and off-trade consumption. At the same time, expanding modern retail networks and e-commerce platforms have improved brand accessibility across urban and semi-urban areas. Younger consumers are embracing cocktail culture, while older generations maintain traditional premium spirit consumption habits, creating broad demographic demand. Aggressive marketing investments by global spirit brands and increasing availability of imported products have further strengthened brandy awareness and desirability across the region. With rising income levels, premiumization momentum, and enormous consumption potential, APAC continues to dominate global brandy volume and value growth.

• Tilaknagar Industries announced it is rolling out two new brandy products — including its flagship Mansion House and the Monarch Legacy Edition — into the Hyderabad duty-free/travel retail channel in late 2025, marking a push into luxury brand positioning and international retail.
• In June 2024, Tilaknagar Industries introduced a Green Apple Flavored Brandy in India, targeting younger consumers and those seeking contemporary, flavor-rich spirit options. This launch reflects broader trends toward flavored and approachable brandy variants in the APAC region.
• While specific APAC brandy launch data is not always extensively publicized, the region’s spirits market—including brandy—is one of the fastest-growing globally due to rising disposable incomes, urban lifestyles, and increasing premium and flavored spirit demand. This broader trend supports continued innovation and new product activity in the APAC brandy segment.

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