In the intricate world of fine wine investment, market watchers continuously monitor the pulse of global price movements.
After more than a year of downward pressure, recent data from the Liv-ex (The London International Vintners Exchange) suggests a subtle yet important shift: the pace of decline is slowing across all major indices, signaling potential stabilization in the secondary wine market.
A Closer Look at the Liv-ex Fine Wine 100
The Liv-ex Fine Wine 100 Index, long considered the industry benchmark, registered a modest decline of 0.6% in May 2024, closing at 349.73. While still in negative territory, this represents a notable improvement compared to April’s 1.3% fall. Importantly, March marked the first month of gains in over a year—fueling cautious optimism among investors and collectors.
This index tracks the price movements of 100 of the most actively traded wines, with representation from France, Italy, the US, Australia, and Spain. As such, its performance is widely regarded as a barometer for the health of the fine wine market.
Broad-Based Trends in the Liv-ex Fine Wine 1000
The broader Liv-ex Fine Wine 1000 Index, which spans 1,000 wines across global regions, also reflects a decelerating decline. It dipped by 0.6% in May, improving marginally over April’s 0.7% drop. Several of its sub-indices exhibited either marginal losses or minor gains, revealing varied dynamics across wine-producing regions.
Key performances within the Fine Wine 1000 include:
- Rest of the World 60: A standout this month, gaining 0.8% as international wines—especially from Chile and the US—attracted investor interest.
- Champagne 50: Registered a slight drop of 0.2%, significantly less severe than the 0.9% and 2.2% declines seen in April and March, respectively. While the celebratory category has cooled since its 2022 peak, its resilience remains.
- Italy 100: Fell by 1.5%, reversing a 0.7% gain in April. This steeper drop suggests short-term volatility in Italian fine wines.
- Bordeaux Legends 40: Declined by 1.4%, following a flat performance the previous month, continuing a broader trend of softness in mature Bordeaux vintages.
First Growths: Liv-ex Fine Wine 50 Trends
The Liv-ex Fine Wine 50 Index, which tracks the daily market movements of Bordeaux’s First Growths (the five elite châteaux), slipped 0.8% in May, down from 1.3% in April. This deceleration is particularly notable, as First Growths often set the tone for broader Bordeaux sentiment.
Bright Spots: Individual Wine Performances
Despite overall subdued momentum, certain labels stood out with strong gains in May.
Within the Liv-ex 100:
- Joseph Drouhin, Montrachet Grand Cru, Marquis de Laguiche 2020 surged by 11.6%, leading all gainers.
- Tua Rita, Redigaffi 2020 (Tuscany) and Tignanello 2020 (Tuscany) posted gains of 10.8% and 5.0% respectively, highlighting the enduring appeal of premium Super Tuscans.
Outside the Liv-ex 100, top performers in the Rest of the World 60 included:
- Sena, Aconcagua 2012, which soared by 20.4%, and its 2017 vintage, up 13.5%—a testament to Chile’s growing credibility in fine wine investment circles.
- Screaming Eagle Cabernet Sauvignon 2014—a cult Napa Valley wine—also made it into the top five, further underlining investor confidence in top-tier Californian labels.
Despite these high points, 56 wines in the Liv-ex 100 declined, and 10 remained flat, demonstrating that volatility and selectivity remain central themes in today’s fine wine market.
Understanding the Liv-ex Indices
The Liv-ex indices provide a comprehensive and transparent view of secondary market dynamics:
- Liv-ex Fine Wine 100: Tracks the most actively traded wines globally; quoted by Bloomberg and Reuters as a key benchmark.
- Liv-ex Fine Wine 1000: Offers the broadest measure, with regional sub-indices capturing nuanced market trends.
- All indices are based on the Liv-ex Mid Price, which reflects actual market activity—the midpoint between the highest live bid and lowest live offer. This approach ensures greater accuracy and independence compared to list price-based models.
Conclusion: A Market in Transition
While price pressures persist, the slowing rate of decline across Liv-ex indices suggests that the fine wine market is moving toward greater balance. Some categories—especially select wines from Burgundy, Tuscany, Chile, and California—are already seeing renewed strength. Others, such as Bordeaux and Italy, continue to face headwinds but may benefit from recalibrated pricing and shifting demand patterns in the months ahead.
For investors and collectors, this is a time for cautious optimism. Staying attuned to market data, regional trends, and individual label performance will be key to navigating the evolving landscape of fine wine investment.
Source: Liv-ex