In a robust display of market dominance, Bordeaux wines have captured nearly 50% of the secondary wine market by value.
This substantial market share underscores Bordeaux's preeminence among wine investors and collectors, driven by the region's consistent quality and historic reputation.
Bordeaux's Ascendancy
The week's trading data reveal that Bordeaux's share of the secondary market surged from 40.2% to 48.2%. This increase is reflected in both the value and volume of wines traded, with Bordeaux wines consistently leading the charts. Notably, Château Lafite 2019 topped the weekly trade rankings for the second consecutive week, evidencing strong and sustained demand. The wine's trading price has shown a slight increase from the previous week, although it remains below its initial release price. This suggests a window of opportunity for buyers to invest in this vintage before prices potentially rise again.
Other Key Regions
Burgundy secured the second spot in weekly trade by value, capturing 18.8% of the market. Champagne made a notable recovery, reclaiming third place with its trade share nearly doubling from 6.3% to 12.5%. Despite a challenging previous week, Champagne's resurgence highlights its resilience and appeal, particularly with high-value wines like Dom Pérignon 2008, which featured prominently in this week's trades.
Stability and Fluctuations in Trade Shares
The Rhône region maintained a steady presence, accounting for 2.6% of total trade by value, showing minimal change week-on-week. Tuscany's market share remained constant at 7.9%, while Piedmont experienced a slight decline, from 4.4% to 3.2%. The United States also saw a reduction in its trade share, falling to 2.6% from a previously strong performance. Additionally, the 'Others' category saw a decrease despite notable activity from Spain's Vega Sicilia, particularly with its 2020 Alión.
Noteworthy Trades and Trends
- Château Lafite 2019: Leading weekly trade for the second week, indicating robust demand. Current trading around pre-2021 levels suggests a potential buying opportunity before prices rise.
- Carruades de Lafite 2023: Traded at £1,558 per case, below its release price of £1,860. This could signal that recent En Primeur price cuts might not be sufficient to attract buyers.
- Château Palmer 2016: Despite price volatility since its release, it remains a significant player, currently trading below its release price.
- Château Pontet-Canet 2015: Noteworthy for its increased demand since early 2024.
Highlights Beyond Bordeaux
- Champagne: Dom Pérignon 2008 was among the most-traded by value, showcasing its high rating and strong market position.
- Burgundy: Domaine d’Auvenay’s Chevalier-Montrachet Grand Cru 2013 appeared on the list, bolstered by Liv-ex’s proprietary algorithm indicating it is just entering its prime drinking window.
- Ribera del Duero: Spain’s Vega Sicilia Alión 2020, with a 93-point rating from The Wine Advocate’s Joaquin Hidalgo, completed the rankings, illustrating the diversity of the market's most sought-after wines.
Market Insights
The strong bias towards Bordeaux in this week’s top trades underscores the region's unparalleled position in the secondary market. However, the inclusion of high-value wines from Burgundy, Champagne, and Spain highlights the diverse preferences of wine collectors and investors.
As market dynamics evolve, particularly in response to economic conditions and trade agreements post-Brexit, it will be crucial for investors to monitor these trends. The current environment suggests a strategic buying opportunity, especially for Bordeaux wines trading below their release prices. However, the volatility in some regions and the recovery in others, like Champagne, indicate a complex and shifting landscape.
In conclusion, Bordeaux's dominance in the secondary wine market is clear, but the vibrant activity in other regions demonstrates the broader appeal and investment potential across the wine market. Buyers and collectors should consider both established and emerging trends to make informed investment decisions.
Source: Liv-ex