Brandy market in the U.S. - Statistics & Facts
Consumers are shifting to lower priced options
Brandy is the fourth largest spirits markets in the United States. The industry is dominated by vodka, tequila, and whisky. Brandy accounted for 17 percent of sales in 2024 with a value of 17.1 billion U.S. dollars. The value price tier, the lowest price tier, currently represents the largest portion of volume in the market. It was also the only segment to experience growth in 2023. High end premium, the second highest price tier, experienced the greatest reduction in sales volume, shrinking by of over 28 percent in 2023 compared to the previous year. Gallo, the manufacturer of E&J brandy, held the largest share brandy volume in the U.S. in that year. E&J brandy saw its third consecutive year of sales decline in 2023.Consumption continues to decline
The total volume of brandy consumption in the United States had been increasing for years, even through the first years of the pandemic. This changed in 2022, when volume declined for the first time to 14.2 million 9 liter cases. Volume declined again in 2023 to 12.8 million cases, representing a reduction of over 21 percent compared to the 2021 peak. Brandy has an association with luxury and indeed the single largest bloc of U.S. brandy drinkers are the highest income earners. On the other hand, nearly 80 percent do not fall into this group and the second largest overall consumer cohort was found among consumers earning less than 30,000 dollars, demonstrating brandy's diverse appeal.Besides facing waning interest due to economic hardship and trendier categories, brandy faces the same long term problem as all other alcohol segments, a growing interest among younger consumers to abstain from alcohol altogether.