The label was founded in 2000 as a part of the Cocoon Music Event GmbH.

The company's other branches are Cocoon Booking (for Sven Väth, Ricardo Villalobos, Josh Wink etc. and Cocoon Clubbing, which organises club events as well as outdoor events and tours. Since July 2004, Cocoon also runs its own Club, located in Frankfurt, and being one of the most innovative club locations worldwide.

Sven founded Cocoon Recordings in order to complete the Cocoon platform as a supporting tool for young artists in Electronic Music. The label philosophy is as simple as demanding: helping young producers and DJs to release their music without depending on Major Label structures. The musical style of the releases is mainly Techno.

The flagship of Cocoon Recordings' releases is the Cocoon Compilation, which features exclusive tracks by Cocoon Artists as well as other new talents and is facing its seventh issue 'G', which is to be released in June 2007 and features tracks by Cobblestone Jazz, Deetron, MyMy, Chaim, Stephan Bodzin, Tiefschwarz, Marcel Dettmann, Aki Latvamäki, Audion, Phil Kieran, Jamie Jones and Onur Özer.

Another series is called "…in the Mix" and features the official Mix-CDs of Sven Väth. After each season in Ibiza, Sven releases his current set – something he did in 1999 for the first time ever during his twenty year long career – under the title "The Sound of the First Season", which immediately entered the official German Compilation Charts at # 28. For instance, "The Sound of the Fifth Season", a combined CD/DVD gives an impression behind the scenes of the CocoonClub Ibiza, one of the most successful parties on the island, and shortly, the current volume "The Sound of the Seventh Season" was released. Other Cocoon Artists featured in this series are Richie Hawtin (together with Sven on "The Sound of the Third Season"), Steve Bug, Ricardo Villalobos, Pascal FEOS, Frank Lorber, Toni Rios and Tobi Neumann.

Besides these two highly successful series, Cocoon Recordings releases artist albums and EPs by Cocoon Artists such as Roman Flügel, Dinky, Djinxx, Jacek Sienkiewicz, Frank Lorber, Legowelt, Richard Bartz, Oliver Bondzio, Oliver Koletzki, Daze Maxim, Dominik Eulberg, Guy Gerber and Pig&Dan