“It’s a Buyer’s Market – don’t miss out!” Is 2023 that once-in-a-decade opportunity to buy lower?Find out more.
What's driving the market in 2023?
The fine wine ‘bull-run’ driven by the pandemic and Ukraine War ran out of steam in the second half of 2022. At the same time inflation also hit its peak of over 10% in the UK. Since then, central banks have maintained an upward pressure on interest rates and inflation is finally in a downward trajectory. Sterling has also strengthened against the dollar and these factors have impacted global markets, with a rally in equities and a softening in the price of gold, and other tangibles.
What is happening to fine wine prices?
Fine wine has seen a period of adjustment during 2023 to date, and across all regions. Looking back, Champagne, for example, saw its average price grow 50.8% in the year to 30th June 2022, as the world piled into wine as a ‘safe-haven’ during a period of massive uncertainty. No market or asset will maintain unbroken growth forever. There are always cycles and there is redress across the sector right now.
Champagne’s average prices have reduced by -5.3% in the year since the end of Q2 2022 and -10% in the first half of 2023. In response, buyers are taking advantage and entering the wine investment market at prices offering better future upside. A key factor is the finite supply of each vintage and wines will only get rarer over time.
Key wines from the Rhone and Burgundy are currently more affordable and this may be an important opportunity to add aspirational wines to a fine wine portfolio. Bordeaux and Italy price performance has remained stable, but the price growth of wines from these regions was not as extreme as that of Burgundy and Champagne during the bull-run. Bordeaux’s blue-chip First Growths and other key estates offer stability and liquidity to a fine wine portfolio.
Which wines are holding value?
Italy has been the best performing region in H1 2023, and we encourage investors to diversify their wine portfolios to include top Tuscan and Piedmont wines when they have the opportunity.
The data currently suggests that there may be a slow-down happening in the price correction and investors should monitor prices carefully. The current window of opportunity will not remain open indefinitely and there are bargains to be had.
For more information on fine wine market performance this year and top performing wines, see the Vin-X Q2 2023 Market Report and speak to a member of our expert team on 0203 384 2262.