By Kelvin Osa Okunbor,The Nation

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Players in the spirits distilling industry are unveiling strategies, including new brands to dominate the Nigerian market as the global cognac value chain is projected to hit $5.8 billion by 2034 from its $4.3 billion about a dozen months ago.

Nigeria, because of its bustling social and cultural activities, with preference for premium products is a frontier market for the value chain projected to grow at 3.2 per cent between 2024 and 2034.

Experts say the steady growth of the market is driven by increasing demand for premium spirits and rising disposable incomes.

Only last week in Lagos, major player in the value chain: Remy Cointreau Group unveiled the – Rémy Martin VS Supérieur to the Nigerian market.

Speaking in an interview, in Lagos, Commercial Director , Josien Holdings Limited , Sam Douglas, highlighted the synergy between Rémy Martin and Josien, two family-owned businesses with a shared passion for excellence and cultural relevance.

“When you look at Remi Martin, it’s a family business that dates back centuries.We work together as two families that understand each other and understand how to run a business.’

He said with Josien’s extensive experience in the Nigerian market, the new brand is poised to succeed with plans to consolidate footprints in major cities including Lagos, Abuja, and Ibadan.

Also speaking, Managing Director of Africa, Middle East, India and CIS ,

Svetlana Naumova, said : “Rémy Martin VS Supérieur represents a bold step forward, honoring our rich heritage while embracing the vibrant lifestyle of South Africa and Nigeria. We’re confident this exceptional cognac, crafted from the heart of Petite Champagne, will resonate with a new generation of cognac lovers across the region.”

In 2024, V.S.O.P. cognac commanded a 52.4 percent share of the by grade segment in the Cognac market, solidifying its leading position.

Off-trade channels led the Cognac market in 2024, capturing a 65.7 percent share of the by distribution channel segment.

This dominance reflects shifting consumer preferences toward convenience, competitive pricing, and accessibility.

V.S.O.P. dominates the Cognac market, accounting for 52.4 percent due to its balanced quality.

Off-trade channels lead the Cognac market with 65.7 percent, driven by retail sales and home consumption.

In Europe, stable demand supports agricultural and distillery industries, particularly in France, where Cognac production sustains rural economies.

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Emerging markets like Asia Pacific and the Middle East & Africa drive export revenues, benefiting trade balances.

Rising disposable incomes in key regions increase consumer spending, further stimulating economic activity.

The premiumization trend encourages investment in branding and marketing, fostering innovation in packaging and distribution. However, supply chain pressures and raw material costs challenge smaller producers.

Overall, Cognac’s growth enhances economic vitality, supports job creation, and strengthens global trade networks, particularly in the luxury and retail sectors.

Expand into emerging markets like Asia Pacific and the Middle East & Africa with tailored branding for affluent consumers. Collaborate with upscale bars and restaurants to boost on-trade visibility.

This dominance is fueled by growing demand for premium spirits, a vibrant nightlife culture, and rising disposable incomes in key markets such as Nigeria.

Europe maintains a steady market presence, underpinned by its deep cultural ties to Cognac and consistent demand across Western European nations.

The Middle East & Africa are emerging as a market for Cognac, driven by rising luxury preferences among affluent urban consumers.