After a prolonged period of decline, the fine wine market is showing initial signs of economic recovery, according to WineCap, an investment firm specializing in wine assets.
The industry benchmark, the Liv-ex 100 index, has experienced significant declines since March 2023, with a drop of 14.6%. Similarly, the broader Liv-ex 1000 index fell by 15.3% over the same period.
Despite these downturns, recent data indicates a turning tide. In February, the Champagne 50 index saw its first increase in 18 months, rising by 1% month-over-month. Likewise, the Italy 100 index showed growth in December last year and again in February, boosted by a wave of new releases.
Examining specific wines reveals reasons for cautious optimism. Leading brands from Bordeaux, Champagne, Burgundy, Tuscany, and Piedmont have shown upward trends over the past three months.
For example, several Champagnes have seen price increases ranging from 2% to 7% since late last year, including Dom Pérignon (2%), Salon Le Mesnil-sur-Oger Grand Cru (4%), Pol Roger (6%), and Veuve Clicquot La Grande Dame Rosé (7%). This contrasts sharply with their downward trajectories six months ago.
In Italy, wines like Ornellaia from Tuscany have risen by 3% recently, while Antinori’s Guado Al Tasso has increased by 2%. Piedmont wines, such as Produttori del Barbaresco Montestefano Riserva, have shown larger gains, climbing by 7%.
In Bordeaux, wines beyond the prestigious First Growths have also seen appreciation, reflecting investor interest in value. Notable examples include Château Malescot St. Exupéry (3%), Château Gruaud Larose (2%), and Château La Gaffelière (2%), all priced below GBP 750 (EUR 877) per case.
Despite Burgundy's significant YoY growth in 2022, the region faced declines over the past year. However, recent performance hints at a modest recovery, with standout performers like Domaine Faiveley Gevrey-Chambertin Vieilles Vignes (12%) and Maison Louis Jadot Vosne Romanée Premier Cru Les Beaux Monts (7%).
While the market continues to offer opportunities for purchasing wines at prices below average, these recent upticks suggest a gradual return to stability and growth in select regions.
Source: Harpers Wine & Spirit Magazine