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US wines account for a record share of trade on Liv-ex

Year-to-date, the number of unique American wines traded was more than double that of 2019, it stated. 

The report also highlights how 10 years ago, only four labels saw secondary market trade, and the US’ trade share by value stood at miniature 0.1%, with much of what the US produced collected and consumed in the US.

Although wine production exists in all fifty states, California produces 85% of all US wine, yet it makes up roughly 98% of US’ trade by value on the secondary market, according to the report.

“The US has long been a major buyer of European wines and a significant force in shaping the fine wine market. Wine produced in the States, however, has had less of an impact on the broader market than one might think. Its influence was confined to a few collectible estates,” said Liv-ex.

Moreover, the report also highlights how, while a decade ago California was synonymous with Napa Valley, the market for California’s wines has been diversifying.

According to the report, Napa Valley’s market share has fallen from 87.4% in 2019 to 79.6% year-to-date. Increasingly, Oakville (3.7%), Rutherford (2.6%), Sonoma County (1.9%) and Sonoma Coast (0.8%), Santa Cruz Mountains (1.5%), Russian River Valley and Paso Robles at 0.4% each, have been taking trade share, it states. 

Lix-ex said growing attention from critics had “doubtlessly” contributed to increased secondary market trade, with demand for US wines having risen across all major buying regions (UK, Europe, Asia, US). 

“2020 has been a great year for US wines on the secondary market. A string of solid vintages, greater attention afforded by releases through La Place, a general broadening of market interest in all things vinous and perhaps most importantly, greater liquidity in the secondary market, have combined to produce a strong uptick in activity around US wines," said Justin Gibbs, Liv-ex director and co-founder.

"As our report shows, the US has hit records this year when it comes to trade share, the number of unique wines trading and the diversity of wines on offer. It is too early to know where USA secondary market activity will settle, but having played virtually no role 10 years ago, its rise of late is notable.”

So far this year, Liv-ex said the value of live bids is up 240% on 2019. 

The biggest buyer of US wines has been the UK, which has made up 63.3% of sales value in 2020. 

The second largest buyer, after growing its trade value by more than 1,450% from 2019, is the US, followed by Asia. Europe is the smallest buyer.

Along with a database of real-time transaction prices, Liv-ex offers access to £70m worth of wine and the ability to trade with 475 plus other wine businesses worldwide. It also organises payment and delivery through its storage, transportation and support services.