Wine investment performance

With returns that can exceed equities and other assets, wine could be your next best investment decision.

Wine Investment Growth

How do investment wines perform?

The performance history of wine investments shows that fine wine delivers returns that compare favourably with main stream assets. 

Investment grade wine generally enjoys low-risk, stable growth, and has historically delivered an average Compound Annual Growth Rate of over 10% in the long term.

The fine wine secondary market has broadened beyond the traditional Bordeaux and Burgundy icons to drive emerging markets in new regions and labels. This is providing new growth opportunities and greater access to this rewarding market for investors. 

Strong growth has been sustained throughout periods of significant, global financial crisis. Wine investments have provided a 'safe haven' for capital as rising inflation erodes cash savings.

 

What kind of returns can you get?

How does wine compare to other investments?

 

Wine as an investment generally delivers strong, stable growth over the long term. Performance is not directly linked to financial markets and wine can protect capital during periods of economic stress. 

Over the last 5 years the key market benchmark, the Liv-ex 100 index, grew 7.6%, with certain regions and individual investment wines delivering returns well ahead of trend.

The Liv-ex Champagne 50 index grew well in excess of sector performance, up 37.8% in the same period. In comparison the FTSE 100 rose 13.1%.

Source: Liv-ex.com, data at 30.09.2024

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Wine is a leading 'passion asset'

 

The Knight Frank 2024 Wealth Report rates fine wine as a top performing luxury asset that consistently delivers strong returns over time.

The 2024 Report revealed that:

  • Fine wine assets recorded average growth of 146% over the 10 years to the end of Q4 2023
  • Fine wine performance was second only to whisky, outperforming cars, watches, art, and other luxury assets monitored by Knight Frank
  • Fine wine's performance over ten years was 50% ahead of the Knight Frank Luxury Investment index's 100% growth 
  • Fine wine is attracting a growing number of ultra-high net worth investors with over 35% in a gobal survey already active owners.

'Investments of passion' have proved their ability to hedge inflation and protect wealth. Tangible collectables art, classic cars, fine wine, watches, jewellery, coloured diamonds and rare whisky are some of the most popular, with profits often exempt from Capital Gains Tax.

Fine wine continues to be an important option for investors seeking to diversify portfolios with alternative assets.

 

 

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Fine wine as an inflation hedge

As a tangible asset with performance not directly correlated to financial markets, fine wine value can grow with rising inflation.

As inflation continues to remain at high levels, investors need to consider a diversified approach to portfolio planning, incorporating a number of strategies to manage risk and optimise investment returns. Tax-efficient fine wine offers significant benefits.

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Understand wine as an investment

Get detailed insight into the performance of fine wine assets with our specialist investor information.

 

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Learn about Investment Wines

We've created your go-to hub for wine investor knowledge. Understand what makes an investment grade wine, which are the most powerful fine wine brands, iconic wine-makers and regional trends driving price performance.
 

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