Fine wine market shows signs of recovery

By James Bayley

Published: 02 April, 2024

Signs of economic recovery are starting to appear in the fine wine market after a year of consistent declines. The industry benchmark, the Liv-ex 100 index, has been in freefall since March 2023, dipping 14.6%, whilst the broader Liv-ex 1000 index has fallen 15.3%.

However, according to investment firm WineCap, the market is beginning to show signs of recovery. In February, the Champagne 50 index rose for the first time in 18 months (1% MoM), whilst the Italy 100 index rose in December last year, and again in February amid a flurry of new releases.

Looking at individual wines, there are more reasons for cautious optimism. Leading brands from Bordeaux, Champagne, Burgundy, Tuscany and Piedmont have been trending upward over the last three months.

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For instance, several Champagnes have risen between 2% and 7% since the end of 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%). By contrast, many of these wines were on a downward trend six months ago.

This trend can also be observed in Italy – from Tuscany, Ornellaia has risen 3% in the last three months, while Antinori’s Guado Al Tasso is up 2%. Bigger increases have been made by some Piedmont brands, such as Produttori del Barbaresco Montestefano Riserva up 7%.

Meanwhile, in Bordeaux, popular wines beyond the First Growths and the top names have enjoyed price appreciation, with investors prioritising value in the region. These include Château Malescot St. Exupéry (3%), Château Gruaud Larose (2%) and Château La Gaffelière (2%). The average case price of these wines comfortably sits below £750.

Burgundy, which closed 2022 30% up YoY, has unsurprisingly fallen the most of all regions over the past 12 months. Despite this, the region appears to be making a modest comeback with some high-flyers. Among them are Domaine Faiveley Gevrey-Chambertin Vieilles Vignes (12%) and Maison Louis Jadot Vosne Romanée Premier Cru Les Beaux Monts (7%).

While the general theme of the market continues to be one full of buying opportunities at cheaper-than-average prices, recent signs of growth suggest that a slow and steady recovery might soon be underway for some regions.

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