Month: April 2025

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Report

WineCap Wealth Report 2025: UK Edition

Fine wine has cemented its position as the most sought-after collectible among UK high-net-worth individuals, according to the newly released 2025 UK Wealth Report. Drawing on fresh research from leading UK wealth managers and IFAs, the report explores how fine wine has continued to evolve from a niche passion asset into a strategic, tax-efficient component of diversified portfolios.

Key report findings:

  • 96% of wealth managers expect demand for fine wine to grow in 2025 – more than for any other luxury asset
  • 80% say fine wine’s exemption from Capital Gains Tax (CGT) is driving renewed investor interest amid tightening tax rules
  • 26% of portfolios now include fine wine in higher-risk strategies – up from 12% in 2024
  • Fine wine is entering retirement planning for the first time, with allocations rising from 0% to 6%
  • A generational shift is underway, with younger, tech-enabled investors embracing wine as a financial instrument

‘Fine wine is no longer reserved for collectors and connoisseurs – year after year our research shows that it is being viewed as a serious asset with strong fundamentals for growth, and valuable tax advantages,’ said Alexander Westgarth, Founder and CEO of WineCap. 

Market shifts and generational change

The report highlights a market in flux: seasoned collectors are beginning to liquidate long-held assets, creating increased supply and driving a slight dip in average portfolio allocations – from 10.8% in 2024 to 7.8% in 2025. However, this rebalancing is creating fresh opportunities for new entrants, particularly among Millennials and Gen Z investors who prioritise tangibility, transparency, and long-term performance.

Tax efficiency and diversification at the forefront

Fine wine’s unique tax status under UK law – classified as a ‘wasting asset’ and therefore exempt from Capital Gains Tax – makes it increasingly attractive at a time when HMRC has reduced tax-free allowances and raised effective rates. The report shows that 80% of wealth managers believe demand will rise due to this exemption alone.

The report further looks at the factors creating demand for fine wine, the impact of Trump’s policies on investment, and how AI is modernising the market. 

Download your complimentary copy of the 2025 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.

Categories
Report

WineCap Wealth Report 2025: US Edition

In a year marked by shifting interest rates, political uncertainty, and evolving investor mindsets, one asset is quietly holding its ground – and gaining new momentum: fine wine.

According to WineCap’s newly released 2025 Wealth Report, fine wine has once again claimed the top spot among collectible investments, with 94% of US wealth managers expecting demand to rise this year. 

Key report findings:

  • 94% of US wealth managers expect demand for fine wine to increase in 2025 (up from 84% in 2024)
  • Fine wine now appears in 28% of high-risk portfolios
  • 72% say high interest rates are a supportive factor for fine wine investment
  • 98% of respondents value wine’s independence from the US dollar as a macro hedge
  • 46% cite strong long-term returns as a key reason for rising demand
  • Portfolio allocations to wine now average 10.7%, reflecting more diversified investment strategies

‘Fine wine continues to prove itself as a robust and intelligent asset class,’ said Alexander Westgarth, Founder and CEO of WineCap. ‘While some seasoned collectors are selling to capitalise on earlier gains, we’re seeing younger, more data-driven investors enter the market – redefining how wine is used in wealth portfolios.’ 

Fine wine in the world of investment

According to the report, fine wine ranks higher than all other collectible investments for 2025. Confidence in its market stability, liquidity, and transparency places it above art, watches, whiskey, and luxury handbags.

In a post-pandemic landscape marked by inflation spikes, rate fluctuations, and policy shifts, wealth managers are increasingly recommending tangible assets with low correlation to equities. Fine wine’s appeal as an inflation-resistant, currency-independent, and globally traded asset makes it an attractive choice for investors seeking stability across economic cycles.

A maturing market

Despite a dip in average allocations from 13% to 10.7%, the report points to a healthy market recalibration – one where liquidity is improving, supply is expanding, and younger investors are driving new demand.

‘This is no longer a passion-driven niche – it’s a credible, data-backed, and globally relevant investment class,’ added Westgarth. ‘As the landscape evolves, we see fine wine becoming a cornerstone of modern portfolio diversification.’ 

The report further looks at the factors creating demand for fine wine, the impact of Trump’s policies on investment, and how AI is modernising the market. 

Download your complimentary copy of the 2025 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.