South America Brandy Market Outlook, 2031

South Americans have developed a rich culinary culture that pairs brandy with traditional dishes and flavours. Brandy, particularly pisco, is often enjoyed alongside seafood, ceviche, grilled meats, and other regional delicacies. The flavours of brandy complement and enhance the vibrant and diverse South American cuisine. Furthermore, many South American brandy producers still adhere to traditional production techniques that have been passed down through generations. From grape selection to distillation and ageing, there is a strong emphasis on preserving the authenticity and character of the spirits. Moreover, South American brandies, especially those produced for premium segments, undergo ageing processes in oak barrels. The ageing period can range from several months to several years, contributing to the development of complex flavours and aromas. In some South American cultures, brandy has been traditionally used for its perceived medicinal properties. It is believed to have warming and soothing effects and is sometimes used as a home remedy for common ailments. In addition, brandies, especially premium and aged varieties, are often given as gifts on special occasions or to show appreciation. It is considered a thoughtful and sophisticated present.

According to the research report, “South America brandy Market Outlook, 2031” published by Bonafide Research, the market is anticipated to add more than USD 650 Million from 2026 to 2031. There is a growing awareness and demand for sustainable and organic brandies in South America. Producers are adopting environmentally friendly practises in grape cultivation, distillation, and packaging. This trend aligns with consumers' increasing preference for products that are produced with minimal impact on the environment. Furthermore, cocktail culture is on the rise in South America, and brandy plays a significant role in many popular cocktails. Mixologists and bartenders are creating innovative brandy-based cocktails that showcase the versatility of the spirit. This trend is contributing to the wider acceptance and consumption of brandy among younger consumers. Moreover, online brandy communities, blogs, and social media platforms are gaining traction in South America. These platforms serve as hubs for brandy enthusiasts to share knowledge, tasting notes, and experiences. Producers are also leveraging digital platforms to provide educational content and engage with consumers directly. In addition, South American brandy producers are exploring ageing experiments using local wood types, such as chestnut, guava, or native oak species. This trend showcases the regional biodiversity and adds unique flavours and aromas to the brandies. Ageing in local forests pays homage to the terroir and cultural heritage of South America.

Market Drivers

• Strong cultural acceptance of spirits and social drinking: Brandy consumption in South America is supported by long-standing drinking traditions and a strong social culture centered around gatherings, celebrations, and nightlife. In countries such as Brazil, Argentina, Chile, and Colombia, brandy is commonly consumed both neat and in mixed drinks, particularly in urban areas where bars and entertainment venues continue to expand. The spirit’s affordability compared to imported whisky and cognac also makes it a popular choice among middle-income consumers, supporting steady volume demand across the region.
• Growing urban population and nightlife expansion: Rapid urbanization is increasing the number of restaurants, clubs, music venues, and hospitality outlets, creating more consumption occasions for brandy. Tourism growth in coastal and metropolitan areas further boosts alcohol sales through hotels and resorts. As disposable incomes gradually rise, consumers are also beginning to explore higher-quality and premium brandy options, adding value growth to the market.

Market Challenges

• Economic instability and inflation pressure: South America frequently experiences economic fluctuations, currency depreciation, and rising inflation, which directly impact consumer spending on discretionary products such as alcoholic beverages. During downturns, consumers often shift toward lower-priced alcohol or reduce overall consumption, limiting consistent brandy market growth.
• High taxation and regulatory uncertainty: Alcohol taxes and changing government regulations across the region can significantly affect pricing and distribution. Sudden increases in excise duties often push retail prices higher, slowing demand and squeezing profit margins for producers and distributors.

Market Trends

• Rising popularity of locally produced and fruit-based brandies: There is growing consumer interest in domestically produced brandies made from local grapes and fruits, which are often more affordable and culturally familiar. These products are gaining popularity in both mass and mid-premium segments.
• Increasing use of brandy in cocktails and modern drinks: Younger consumers are increasingly consuming brandy through cocktails and mixed beverages rather than traditional straight drinking. Bars and clubs are experimenting with brandy-based cocktails, helping modernize the spirit’s image and attract new drinkers.

South America is home to a wide variety of grape cultivars, each offering unique flavours and characteristics. This diversity allows for the creation of a rich and varied range of grape brandies.

From robust and full-bodied red grape brandies to aromatic and fruity white grape brandies, the region's grape varieties cater to different consumer preferences. Furthermore, grape brandies, especially those made from specific grape varieties, have excellent ageing potential. The tannins and phenolic compounds present in grapes contribute to the development of complex flavours and aromas during the ageing process. South American producers often age grape brandies in oak barrels, allowing them to acquire unique characteristics over time. Moreover, the strong presence of the wine industry in South America creates synergies with the brandy production sector. Many grape brandy producers also have vineyards and wineries, allowing them to leverage their expertise in grape cultivation and winemaking to produce high-quality grape brandies. This integration enables efficient sourcing of grapes and facilitates shared knowledge and techniques. In addition, cognac is often associated with special occasions and celebrations in South America. It is commonly enjoyed neat or as a part of sophisticated cocktails during festive events, weddings, and upscale gatherings. Cognac's presence adds a touch of sophistication and refinement to these occasions. Furthermore, South America is a popular tourist destination, attracting visitors from around the world. Duty-free shops and travel retail outlets offer a wide selection of spirits, including Cognac, catering to the demand of travellers who seek to purchase premium and luxury products as souvenirs or gifts.

In South America, the value price range plays a crucial role in market penetration, particularly in emerging economies. It allows brandy to reach a broader consumer base, including entry-level consumers who may be new to the category or looking for more accessible options.

South America has a strong tradition of local brandy production, often utilising regional fruits such as grapes and pisco grapes. Local producers often focus on offering value-priced brandies that are affordable and cater to the tastes and preferences of the local market. For instance, some of the brandy brands in the value price range ($1 to $20) that are popular in the South American market include Fundador, Presidente, Alambic, Siete Reales, Velho Barreiro, and more. In addition, super-premium brandies are sought after for gifting purposes and special occasions. In South American culture, occasions such as weddings, anniversaries, and celebrations often involve the exchange of premium gifts. Super-premium brandies, with their luxurious packaging and exceptional quality, are well-suited for such occasions. For instance, super-premium brandy brands that have gained popularity in the South American market include Hennessy Paradis, Rémy Martin Louis XIII, Torres Jaime I, and Cardenal Mendoza.

In South America, various events and festivals celebrate brandy and provide platforms for enthusiasts, professionals, and consumers to come together, learn, and appreciate the spirit.

For instance, Pisco Sour Day is celebrated annually on the first Saturday of February in both Peru and Chile. This event honors the national cocktail of each country, which is made with pisco, a grape brandy. Festivities include tastings, cocktail competitions, live music, and cultural activities. Furthermore, ExpoVinis Brasil is the largest wine and spirits trade fair in Latin America, held annually in São Paulo, Brazil. The event showcases a wide range of wines and spirits, including brandy, providing a platform for industry professionals, importers, distributors, and consumers to explore and discover new products. Moreover, the Encuentro Nacional del Brandy is an annual gathering in Argentina that celebrates brandy. It brings together brandy producers, industry experts, and brandy enthusiasts to share knowledge, discuss trends, and taste a variety of brandy offerings. In addition, the Chilean Wine Fest features a range of Chilean spirits, including pisco and brandy. The event showcases different brands and allows attendees to taste and learn about Chilean brandy production and flavor profiles.

Brazil is renowned for its unique brandy called cachaça. Cachaça is a type of sugarcane brandy that is distinctively Brazilian. It is made from fresh sugarcane juice and has a long history and cultural significance in the country.

Cachaça is the key ingredient in Brazil's national cocktail, the Caipirinha, and is enjoyed by locals and tourists alike. Furthermore, cachaça has a protected designation of origin (PDO) in Brazil, which means it must be produced in compliance with specific regulations and standards. This designation ensures the authenticity and quality of cachaça and protects it from imitation or misrepresentation. While cachaça is often consumed as a young and fresh spirit, aged cachaça is gaining recognition. Some producers age cachaça in wooden barrels, such as oak, for a specific period, allowing the spirit to develop more complex flavours and aromas. Aged cachaças are sought after by enthusiasts who appreciate the nuances that come from maturation. In addition, Brazil hosts several cachaça festivals throughout the year, celebrating the spirit's heritage and diversity. These festivals feature tastings, workshops, cultural performances, and competitions, bringing together producers, enthusiasts, and the general public to experience the world of cachaça.

• Several South American distillers brought new brandy expressions to market that gained recognition in industry awards, such as Soberano 12 and Soberano Solera, which were featured in The Brandy Masters 2025 judging results for their distinctive flavor profiles. These launches highlight producers pushing quality and differentiation in traditional brandy styles in the region.
• While not single bottle launches in 2025, pisco—South America’s traditional grape-derived brandy from Peru and Chile—continues to be actively promoted and innovated through marketing, cultural storytelling, and cocktail usage, reinforcing its category relevance. Pisco remains a core growth driver and is innovated through boutique distilleries and mixology experimentation across South America and abroad.
• Singani 63, a traditional Bolivian brandy, has seen efforts to broaden its global reach and recognition, including partnerships that bring it into international cocktail bars and cultural spotlight placements. Although not a wide commercial release, this reflects rising product visibility and category innovation connected to South American brandy styles in 2025.

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