Cognac Exports Plunge Amid China-US Tariffs & Weak Demand
Trade Friction & Economic Weakness: Structural Challenges for Luxury Spirits
According to the latest **BNIC** data, global **Cognac** export volume and value both saw double-digit declines last year. Global shipments fell by 15.1% to **141 million bottles**, while export value plummeted by 25.3%. Among product categories, **VS** shipments dropped 16.2% and **VSOP** fell 11.5%. The high-end **XO** and above categories were hit hardest with a 23.2% decline, highlighting the severe challenges facing the premium spirits market in the current economic climate.
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Pincer Attack from US & China: High Tariffs Prove Fatal
The decline is primarily attributed to policy changes in the two core markets—the **United States** and **China**. In China, as a retaliatory measure against European taxes on electric vehicles, imported **Cognac** was hit with an average **32.2% anti-dumping duty**, resulting in a 25% loss in market share. In the US, a 15% import tariff combined with unfavorable Euro-to-Dollar exchange rates caused average retail prices to rise by about 30%, severely dampening consumer demand.
Regarding regional performance, North American shipments (US, Canada, and Mexico) decreased by 19.4%, with export value dropping 34%. Far East shipments (including China and Singapore) and value fell by 20.5% and 23.1%, respectively. European export volumes also declined by 10.9%. Despite the grim outlook, the UK maintained its position as the fifth-largest export market, while South Africa showed growth potential, becoming the fourth-largest export market globally for the category.
The slump in **Cognac** exports has directly dragged down the overall performance of **French spirits**. Total French spirits export value fell by 17.4% last year, marking the third consecutive year of decline. BNIC data underscores the profound impact of international trade barriers and geopolitical tensions, forcing distilleries to more aggressively pursue growth opportunities and diversification in emerging markets as traditional markets contract.
📅 Publish Date: 2026-03-04
🔗 Source: https://www.thespiritsbusiness.com/2026/03/cognac-exports-to-north-america-slide-34/